Read on TwitterIt& #39;s time for a little thread about one of the less risky options strategy
2/7
It& #39;s called the covered call.
Here& #39;s what you need to do:
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> buy 100 shares of a single stock
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> sell 1 call.
Don& #39;t worry for commissions, it can be done in one single order.
It& #39;s called the covered call.
Here& #39;s what you need to do:
Don& #39;t worry for commissions, it can be done in one single order.
3/7
You can choose to sell weekly calls so it generates weekly income.
Let& #39;s say you buy 100 shares of XYZ at $40 and you don& #39;t think it will be higher than $45 next week.
You decide to sell a call at stike 45 with expiration in 7 days to get a premium.
You can choose to sell weekly calls so it generates weekly income.
Let& #39;s say you buy 100 shares of XYZ at $40 and you don& #39;t think it will be higher than $45 next week.
You decide to sell a call at stike 45 with expiration in 7 days to get a premium.
4/7
If you are right, you keep the premium and the shares.
If at expiration the price of XYZ is above $45 you will be obligated to sell your shares at $45.
If you are right, you keep the premium and the shares.
If at expiration the price of XYZ is above $45 you will be obligated to sell your shares at $45.
5/7
https://abs.twimg.com/emoji/v2/... draggable="false" alt="💵" title="Banknote mit Dollar-Zeichen" aria-label="Emoji: Banknote mit Dollar-Zeichen"> In both cases you keep the premium.
https://abs.twimg.com/emoji/v2/... draggable="false" alt="💵" title="Banknote mit Dollar-Zeichen" aria-label="Emoji: Banknote mit Dollar-Zeichen"> In the second case even if you sold your shares you still benefit from the price rise from $40 to $45!
6/7
That& #39;s a good way to generate income with your current stocks.
@BusinessFamous did a great job explaining the strategy in detail here: http://bit.ly/TurboDiv ">https://bit.ly/TurboDiv&...
That& #39;s a good way to generate income with your current stocks.
@BusinessFamous did a great job explaining the strategy in detail here: http://bit.ly/TurboDiv ">https://bit.ly/TurboDiv&...
7/7
If you want to learn more about options in general, this bundle includes & #39;Intro to options& #39;, the best resource to get started: https://gumroad.com/a/898110579/xMDOW">https://gumroad.com/a/8981105...
If you want to learn more about options in general, this bundle includes & #39;Intro to options& #39;, the best resource to get started: https://gumroad.com/a/898110579/xMDOW">https://gumroad.com/a/8981105...
