Sentences with phrase «writing out of the money options»

These guys look identical to someone writing out of the money options and collecting premiums.

Investors who have core holdings of non-volatile stocks will often do this — write out of the money options that have 3 - 6 months of time to expiration.

Not exact matches

I want to hold shares and not turn them for options so I wrote out of the money covered calls for bonus income.

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.

The call options written are slightly out of the money and are rolled forward every month upon expiry.

We've added two columns below: the first assumes you write an option that is at least 5 % out - of - the - money each month, and the second is the sum of the annualized dividend and call premium (the annualized call premiums in these examples are 12x the September cycle time premium for options that are between 5 % and 9 % out - of - the - money):

moneyness, or the distance from the strike price to the current stock price at the moment you write the option (not all of these have $ 1 strike increments, so you can't always choose an option that is exactly 5 % out - of - the - money, but all of the above are at least 5 % OTM)

Write an out of the money call option and get some extra income each month.

Ran out of time to write a new April Fools» joke this year, but here are a couple of oldies but goodies: Free Money Printing Press (5 years later we still get emails from people asking if the offer is valid), CBOE's New Mega And Nano Options (like mini weeklys but better!)

To mitigate downside risk and generate income, the Investment Manager actively manages a covered call strategy that will generally write out of the money covered call options on 100 % of the portfolio securities.