Sentences with phrase «executed covered call»

Only one of you is going to win on the option, although the writer of an executed covered call just lost out on additional gains.

My fee - based RIA also executes covered call writing strategies for our IRA and 401K clients.

To execute the covered call income strategy, you need to hold a 100 - multiple of a given stock, which will be the underlying security for stock options you will be selling.

Thus, it's important to only execute a covered call strategy on companies that you would be happy to hold over the given time horizon.

First thing's first — I'm going to outline step - by - step how you actually write execute the covered call income strategy.

All the knowledge you need to execute the covered call income strategy.

This is practical because ETFs are generally good choices for executing the covered calls as an income strategy (more on that later).

Out of reach for all but the wealthiest investors, which means executing the covered call income strategy on Berkshire probably isn't a wise goal.

I typically execute the covered call income strategy on large companies that have slow but steady growth trajectories.

Capital requirements aside, there is another advantage to executing a covered call strategy on an underlying with a cheap share price.

But what about if you wanted to execute a covered call strategy on Berkshire Hathaway?

First of all, it means that even after the options expire, you will still own the underlying security, meaning you can reassess the situation and potentially execute the covered call strategy a second time.

Not exact matches

Because the account holder owns the required shares to cover the call if it is executed additional funds would not be required which could cause an IRA contribution problem.

Most will not execute the call right away, you will often have some time to either sell / cover stock or add funds to your account.

Today I'm going to show you how I find great candidates for the covered call strategy and how I execute the trade.

For example, it can often take multiple days to actually sell options when implementing the covered call income strategy, but I don't think I've ever had a stock order sit for multiple days without being executed (limit orders aside).