Sentences with phrase «call options against»

In this example we are going to buy 200 shares and then sell 2 call options against it (since 1 option controls 100 shares, see Tutorial).

If IWM is less than 63 (the strike price of the options you sold) by the close on Sep 17 then the options you sold will expire worthless (i.e. you keep the $ 420 you sold them for, and you keep your stock) and now you can either sell the 200 shares of IWM you still have, or you can write another 2 call options against those shares for the October option cycle (when the market opens the following Monday, Sep 20).

In search of extra income, investors sometimes skip bonds — and instead sell call options against their stock portfolio.

We did not want to own a stock or sell call options against a stock we do not like or do not want to own.

There are several ETFs that will rise as interest rates are rising and, even better for us covered call writers, they are optionable (meaning you can sell call options against them).

What I'm talking about is selling (writing) call options against the Ford stock we hold.

By selling call options against your shares of stock you can lower the cost basis of your stock or simply use the call premium from selling the options as a source of income.poor man's covered call

Because our strategy writes covered call options against the underlying securities, a concentrated portfolio strategy is a great product for the middle market investor who has roughly $ 250,000 and up to invest and can benefit from strategies that were at one time only available to institutional, endowment and trust investors only.

Second, we help people who have large concentrated stock positions generate additional income by selling call options against them.

Now you can either sell the 200 shares of IWM you still have, or you can write another 2 call options against those shares for the October option cycle (when the market opens the following Monday, Sep 20).

By selling call options against stocks you own, you can generate recurring monthly income.

In addition to seeking high - yield dividend stocks, you can also increase the yield by writing call options against them each month.

My conclusion is that it is possible to get an excellent income stream (10 % or so after fees) from a combination of buying strong yield stocks and writing call options against the positions.

That starts with buying dividend paying stocks and then selling call options against them.

You already own the stock so why not make it work for you by selling call options against it?

If you owned 500 shares of stock, you could sell 5 call options against it (not 500 call options) and receive 5 x $ 150, or $ 750.

«Buy a diversified portfolio of blue - chip, dividend - paying, large - cap stocks (think Dow 30 type companies), and then write covered call options against them for recurring monthly income,» he said.

For example, selling call options against stock positions you own can provide some downside protection and also produce a nice income stream.

You can see my original trade setup in this post where I am showing the entire calculation of what would happen if I buy 100 shares of the stock and sell 1 call option against the shares.

Now you can sell another call option against the same stock for the following month.

Second, you sell a call option against that stock.

Sometimes you want to buy stock merely for the purpose of writing a call option against it prior to an earnings announcement.

You can see my original trade setup in this post where I am showing the entire calculation of what would happen if I buy 100 shares of the stock and sell 1 call option against the shares.

Covered call writing is where you sell a call option against a stock you currently own.

Covered - call writing can either be accomplished by the sale of a call option against a stock you currently hold or through the simultaneous purchase of a stock and the sale of a call option.

During periods of high volatility, the Portfolio Manager will write (or sell) a call option against some of its positions in order to hedge downside risk, while generating an income stream from the sale of options.

A covered call is an income strategy constructed by writing a call option against a holding of the underlying security.

Not exact matches

To understand the effect of this modest shortfall in stock selection performance over the past 8 months, recall that when the Fund is hedged against the impact of market fluctuations (and provided that our long - put / short - call index option combinations have identical strike prices and expirations), its returns are roughly equal to:

Option Robot has a unique feature called the «Reversed Trading Feature» which allows traders to place trades that go against the signal generated by the system.

The third option that, again, he argues against most vigorously is the so - called Intelligent - Design proposal.

Emergent evangelicals had bumped up against the limits of what George Lindbeck has called their «cognitive - propositional» approach to doctrine — faith as assent to propositional truths — but unlike earlier generations they no longer believed their only other option was to become traditionally «liberal.»

But when having difficulty against a ten man back - line or just lacking a final ball, that is when Fabregas is a nice option to call.

Once again I suppose he's an option that Wenger can call upon in dramatic times, but don't expect to be seeing Sanogo lining up against Bayern Munich anytime soon.

As France attempted to clear their heads in the wake of Eder's 109th minute goal in the final, the option Didier Deschamps called for was Martial, a player he had barely used since a hugely disappointing group game outing against Albania.

The former Arsenal and Roma defender was called to action as an option against Valencia.

Elneny may not quite fit the profile of the diminutive Spanish ball - player who usually takes on the job of masterminding Arsenal's midfield play from deep but against Spurs he showed why he was more than just the best option at hand but perhaps exactly the kind of Arteta successor that fans have been calling for.

On November 21, 2013, the Senate used the so - called «nuclear option», voting 52 - 48 — with all Republicans and three Democrats voting against — to eliminate the use of the filibuster on executive branch nominees and judicial nominees, except to the Supreme Court.

Gillibrand also reiterated Schumer's warning against using the so - called «nuclear option» to ram Gorsuch's confirmation through — that is, changing Senate rules to block use of the filibuster.

Another option is to create what's called an immunizing reversal drive in a kind of offense - as - defense move that would overwrite the gene drive and also arm the wild population against it.

This week has the two great heavyweights going up against each other for your money, these two options being Activision's FPS juggernaut Call of Duty and Giants Software's.....

It calls for the state to enter into a contract without going through a competitive bid process, he said, so the consortium must be considered against other options.

Then, this month, the Black Alliance for Educational Options, a pro-charter group, and the National Alliance for Public Charter Schools launched a campaign called ChartersWork to push back against the moratorium.

Investors who buy stock for the purpose of selling deep in the money calls against it are trying to earn the time premium portion of the option price as income.

Accounts in the composite may include portfolios where covered call options are periodically written against positions.

I was a little nervous to apply because I don't want to be denied and have that mark against my credit for 2 years for nothing but I went ahead and enter my info to see if I was pre-qualified for anything and this card came up along with the other Capital One and the Quicksilver or whatever that's called so I chose the safe option and was approved with a credit score of 549 and my deposit was $ 49 for a $ 200 dollar credit limit, but me being me and wanting a higher credit limit I paid $ 249 and have a credit limit of $ 400.

Now, imagine you are willing to sell any of these stocks if they rise by 5 % or more in a 30 day period, i.e. you write call options (stock options) against all of them that are about 5 % out - of - the - money.

Quick review (if you need a longer explaination, see the covered call tutorial): (1) you need 100 shares of stock or ETF, (2) you then sell 1 call option (because options control 100 shares) against the stock / ETF you own, and then (3) at expiration you may end up having your stock called away (and receive cash) or you may end up owning your stock and having the call option expire worthless (in which case you can sell another call for the next cycle).

If these market internals remain resilient on a reasonable pullback, we could move about 1 % of assets into call options (essentially maintaining our defense against losses but allowing some participation in advances at the cost of modest time decay if the market is flat).

Choosing an expiration month: If you are buying stocks for the purpose of writing short - term calls against them, then you probably want to stay away from options that have earnings releases before the option expires.

Three types of put and call options trade against the E-mini S&P 500 futures contract.