Sentences with phrase «strike covered call»

I'm expecting a bounce, so I didn't sell another lower strike covered call yet and didn't buy a put for protection yet.
If I'm way off the mark and UCO goes as low as $ 9.00 in the next month I expect to be able to sell $ 10 strike covered calls for $ 0.45 - 0.50 each which would be approximately a premium I could take in of around 5 % each month until oil comes back up.

Not exact matches

Covered calls provide downside protection only to the extent of the premium received and limit upside potential to the strike price plus premium received.
At the time of writing last month I proposed rolling the covered calls on CVX by closing the existing position (the $ 105 strike at $.15 or the $ 110 at $.05) and selling a July 105 call for $.93 or a July 100 call for $ 2.98.
Your call for grace in this instance bears a striking resemblance to Doug Pagitt's call for generosity, and both smack of disingenuous concern for the greater good meant to disguise your attempts to cover your friend's ass.
They recently launched several new diaper cover prints and solid colors, including a darling floral print called «Afternoon Tea», a striking navy blue «Ahoy», and «Sunshine» yellow.
Our reviewer calls Danez Smith's latest poetry collection «vivid, unsettling and uplifting all at once,» and that's exactly what this striking cover reflects.
If we look at the number of covered calls offered by expiration date (that is, all symbols and all strikes for a given expiration date), we find:
When the ETF finishes above the strike price (for example, you wrote a $ 75 covered call and the ETF closes at $ 78 on its last trading day), the person who owns the long call will exercise his or her right to buy your stock ETF at $ 75 per share, which forces you to sell it with an options assignment.
Whether this is a covered call at 125 or a cash - secured put at 125, the risk below the short strike price of 125 is the same.
Set the Moneyness filter to «at the money or higher» strikes, and we get several possible covered calls to write:
Choosing a strike price for your covered call (see moneyness tutorial) is really up to personal preference.
In the option world, the buyer of a call option (not you... as a covered call investor you are a seller of call options) has the right to buy your stock at a certain price (strike price) by a certain date (expiration date).
Some investors have a hybrid strategy of selling naked puts until they are assigned (so now they own the stock) and then turn around and sell a covered call at the same strike.
With the price of oil dropping to new 5 - year lows today, and new concerns about Greece / Euro, now would be a good time to consider some in - the - money covered calls (where the strike price is below the current stock price) so that you can earn some premium but also have a bit more downside protection working for you.
Options comes with its own vernacular — covered calls, selling puts, the strike price, iron condors, etc. — and that requires some getting used to, but it's not like learning how to split the atom.
Once in a while we'll accept a put assignment and then turn around and sell covered calls at the same strike we were assigned.
There's nothing wrong with that but it's the same as starting with a covered call, have it expire out of the money, and then writing another covered call at the same strike.
There are usually between 10 to 30 companies in the portfolio at any one time and typically a handful of options and strike prices on any one position, typically puts and covered calls.
You don't think the share price is likely to rise very much over the next few months, so you sell me 10 call options (each option covers 100 shares) with a strike price of $ 58 and an expiry date of July 16.
But no matter which strike or expiration date you choose, writing covered calls against these high yielding «dogs» will increase their yield and lower your portfolio volatility.
If you set the strike price low enough, you can make money with covered calls even if the stock price declines.
If you do sell covered calls and set the strike price to a level you'd be happy selling your stock for then it's a pretty good plan.
In the previous example the strike price ($ 25) was above the stock price ($ 23.12), which is the very definition of an «out - of - the - money» (OTM) covered call.
One negative of this strategy is that if your stocks rise by more than 5 % in 1 month then you will either have to buy the options back (potentially at a loss) or let the stock get called away (in which case you've still made at least 5 % on that position for that month but have forfeited any gains above the strike price (see Covered Calls For Dummies for more info).
An investor could roll the covered calls on CVX by closing the existing position (the $ 105 strike at $.15 or the $ 110 at $.05) and selling a July 105 call for $.93 or a July 100 call for $ 2.98 (Quotes reflect today's closing bid / asks).
Today our database has 438,974 covered calls, which is all possible buy - write combinations of underlying symbol, strike price, and expiration date being offered today (including weeklys).
The covered call investor participates in the upside from 46 (purchase price) to 50 (strike price), but then stops gaining additional profits for every stock price above 50.
I think I'll roll my covered calls to lower strikes once more value melts out of them and we get past the latest worries over the PIIGS.
Covered call sellers gained extra profit if the stock does not rise above the strike price.
If you have covered calls for VTI for three months @ a strike price of 65.00 you may have netted an additional return of 2.50 × 400 = $ 1000.
All 10 will finish above their strikes today which means I won't be assigned any of the puts and all three covered calls will force the sale of my shares...
One major benefit to being able to buy discounted company stock is that you can sell in - the - money covered calls and potentially make more than you would selling at strike.
The Risk: Writing OTM covered call provides the writer with options income and the writer is only obligated to sell the underlying security if the stock closes above the strike price at the time of expiration.
Stock above the strike price If ZYX advances to 50 at expiration, the covered call writer, upon assignment, will obtain a net profit of $ 875 per contract (the exercise price of 45 less the price of the stock when the option was sold plus the option premium received of 3 1/4 X 100).
Imagine a covered call that has been written at a strike of 50.
Intel Corporation (INTC)-- Covered Call Intel Corporation closed on Friday at $ 21.12, and with a strike price of $ 22.00, my option expired.
The maximum profit from an out - of - the - money covered call is realized when the stock price, at expiration, is at or above the strike price.
This is a genuine high level summary of the market this week with emphasis on my RUT Bear Call Spread and a few words on the Ford (F) and GLD simulated Covered Calls I have an April expiration on RUT with the short contract at a strike of 1100.
For each strategy we will pick a strike that is most closely aligned with the strategy each week, intending to sell 52 weekly covered calls in 2016.
That means I'm selling some covered calls at lower strikes than I was planning to.
In effect, an investor with a covered - call strategy is compensated with a premium for agreeing to sell his or her holdings at the strike price.
You need to be prepared to sell your one hundred shares for the strike price at any point in time after you write the covered call.
According to Eden Rahim, portfolio manager for the AlphaPro Covered Call ETFs, short - dated covered calls are written with a dynamic strike price based on the volaCovered Call ETFs, short - dated covered calls are written with a dynamic strike price based on the volacovered calls are written with a dynamic strike price based on the volatility.
Put writing is essentially the same as covered call writing; same profit & loss curve for the same strike and expiration date.
This is not a covered call trade, it is merely a large directional bet that DAL will close above $ 51.85 (strike + cost of call option) before May 20 (expiration):
Positioning of strike, expiration and proximity are crucial to the success of a covered call strategy.
You write a covered call with a strike price of $ 55.
In the meantime, you can sell a covered call for your desired strike price.
You wrote a covered call with a strike price of $ 55 and 3 - month expiration.
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