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I have just found out about covered calls and cash covered puts. It seems too good for such little risk.

Anyone doing it?

antman 7 Oct 5
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Tell us more about this .

Cast1es Level 9 Oct 5, 2021
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Had to google. Here's my standard shameless cut and paste.

What Is A Covered Call & Why Is It So Popular?

A covered call consists of buying a stock and selling a call option against the stock.

For example, let's say you own a stock that is trading at $100 per share. If 30 days go by and your stock is still trading at $100 per share, you are obviously not making any money.

If you sell a call option at say strike price 105 with maybe 30 days to expire, you might get paid something like $2.00 per share for doing so.

Now, here's what can happen. If the stock goes up to say $110, you'll be forced to sell your stock at $105 and you'll still keep the $2.00 per share credit. In other words, you'll be up $7 per share instead of $10.00 per share had you just owned the stock.

In the stagnant trend when 30 days go by, you'll be profitable by $2.00 per share instead of breaking-even. This is why many enjoy covered calls because they can still make 2% or more per month in a flat market.

Learn more in a free class or call us directly at 1-888-225-1155.

UrsiMajor Level 8 Oct 5, 2021

Exactly. The 2% or more a month is a good return. From my research I think 1% a week is quite doable. I just need the funds now 😂

@antman Fails to consider what happens if the stock loses value....

@UrsiMajor spread risk over a few stocks I think the risk is quite small.

Thank you for discussing this .!

@Cast1es did this answer your comment above about telling you more?

@K9Kohle789 Fidelity is not so happy about granting my option request on a five hundred dollar account. I'm losing my hard-earned money here instead. [startengine.com]

@K9Kohle789 I actually ordered food from GTFO before. They waived the airfare from California and I had to bite. This is personal. We need to have the first all-vegan Amazon.

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Basically if you own 100 shares of a company you can sell a call option, meaning you agree to sell them to someone at a certain price at a certain point in time. They pay you a premium for this deal. If the price doesn’t reach the agreed upon price by the agreed upon date you keep your stocks and their premium.

Cash covered put is similar but you have the cash ready to buy stock from someone.

@K9Kohle789 Yes. Buy the shares to sell covered calls or have the cash to buy when selling a covered put. That’s what makes this hard in the first place is having enough capital to own 100 shares of anything worth doing this with.

@K9Kohle789 you choose the strike price of the option so it wouldn’t be less then you paid. There’s many stocks where the premium is around 1% and you can do it weekly.

@K9Kohle789 I think it’s quite possible to make good money here. Thanks for the info I shall research this lady a little.

@K9Kohle789 yes I like to read. I occasionally buy a copy of the WSJ. I like finance and business.

@K9Kohle789 bills are boring for sure 😂

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Posted by PinkyandtheBrainGood correction. I actually consulted with a lot of people.

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