Thank you Dan & Josh, Tried it out and this is a useful tool. Like it a lot. The days to expiration gives us the return for that given period. Maybe a simple multiplier would better reflect an annualized return . We have a maximum of 12 monthly contracts possible and maybe need to drop that for months with earnings, as noted in the video.
Also, the educational content in this video is very good too. Writing the calls seems like a great way to “trade around a position”. Writing the calls at different strikes can help balance the capture of a stock price advance with the risk of a decline. Thanks again for two of the best investment tools in existence, OMM & SMM.
This is interesting, but every example shows the stock being called away and you never mention the other possibility of the stock price not moving up but going down. So the return would only be the option premium we took in, against the drop in stock price. Another possibility is the stock price zooming in which case it might be in our interest to buy back the call.
Nice video on Covered Calls. I totally agree with Dan’s comment that when trading only 1 covered call contract the commissions can eat up a lot of your profit and really negate your trade, especially from a percentage basis. One thing that I’ve done with a single (or 2) buy-write trade is to close it manually on expiration day rather then let it expire. I trade with TOS and i believe they charge $15 for an excercise, but on expiration day if I simply sell the Stock and buy back the Call the comission is only $5 for the stock transaction and $1.50 for the Option for a total of $6.50. On EXP day there is no time premium left so you still get the full benefit of the trade. For anyone who wants to get started with a small number of covered call trades this might help your return %. This is a good reminder for me that I should probably trade more covered calls. They are certainly one of the most consistent types of trades in my portfolio.
Dan,
I like it a lot! Thank you for putting this on the website to give it more value to me. Have participated in a few covered calls with you for profit. I am a newby to options but not to stocks. Options are a different animal to me. Will do more covered calls thanks to you. How do you do a scan for the PE>20 and GR >20?
Thank you.
Thank you Dan & Josh, Tried it out and this is a useful tool. Like it a lot. The days to expiration gives us the return for that given period. Maybe a simple multiplier would better reflect an annualized return . We have a maximum of 12 monthly contracts possible and maybe need to drop that for months with earnings, as noted in the video.
Also, the educational content in this video is very good too. Writing the calls seems like a great way to “trade around a position”. Writing the calls at different strikes can help balance the capture of a stock price advance with the risk of a decline. Thanks again for two of the best investment tools in existence, OMM & SMM.
the hal analysis seems off
i see the 38 strike at 1.93
This is interesting, but every example shows the stock being called away and you never mention the other possibility of the stock price not moving up but going down. So the return would only be the option premium we took in, against the drop in stock price. Another possibility is the stock price zooming in which case it might be in our interest to buy back the call.
Nice video on Covered Calls. I totally agree with Dan’s comment that when trading only 1 covered call contract the commissions can eat up a lot of your profit and really negate your trade, especially from a percentage basis. One thing that I’ve done with a single (or 2) buy-write trade is to close it manually on expiration day rather then let it expire. I trade with TOS and i believe they charge $15 for an excercise, but on expiration day if I simply sell the Stock and buy back the Call the comission is only $5 for the stock transaction and $1.50 for the Option for a total of $6.50. On EXP day there is no time premium left so you still get the full benefit of the trade. For anyone who wants to get started with a small number of covered call trades this might help your return %. This is a good reminder for me that I should probably trade more covered calls. They are certainly one of the most consistent types of trades in my portfolio.
Dan,
I like it a lot! Thank you for putting this on the website to give it more value to me. Have participated in a few covered calls with you for profit. I am a newby to options but not to stocks. Options are a different animal to me. Will do more covered calls thanks to you. How do you do a scan for the PE>20 and GR >20?
Thank you.
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