@calltoleap: Selling covered calls is a trading strategy that can generate additional income from an existing stock portfolio. Here's a simple explanation of how it works: 1. Pick a stock you want to hold on to long term. For me, it’s Google 2. Buy X amount of shares 3. Choose expiration date around 30-45 days away 4. Toggle on sell and call 5. Sell 1 contract ($155 strike price for $570) If Google is below $155 by the time of expiration I get to keep my $100 shares and the $570 worth of premium. Possible Outcomes: 1. Option Expires: If the stock price is below the strike price at expiration, the option expires worthless, and you keep the premium. You can then repeat the process by selling another covered call. 2. Option is Exercised: If the stock price is above the strike price at expiration, the option buyer will likely exercise the option, and you must sell your stock at the strike price. You still keep the premium, but you no longer own the stock. I hope that this breakdown gives a better understanding of how to sell covered calls. -Steve Follow @calltoleap for investing videos! Follow me @calltoleap to learn more things like this about money! @calltoleap @calltoleap @calltoleap Make sure you check out my next beginners investing master class on August 6th at 5:30 PM PST the link to sign up is in my bio! 🔥 Let me know if you sell covered calls in the comments below 👇 #money #investing #finance #personalfinance #coveredcalls

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Tuesday 16 July 2024 23:00:17 GMT