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good morning in this segment we are going on
to basic
covered call
currently i have some option some long
started
ETF's
in the XLF at
as you can see here i have
two hundred
XLF at shares
these tracks we put to me so just to give you a little bonus
i sold make it puts at probably fourteen or fifteen dollars
and collected a premium
and then we have the stock put to me so what i want to do now
is i think the market may or may not go above fifteen
right now it's at fourteen seventy nine
so i'm thinking that if i saw the fifteen two fifteen
dollar
covered calls
then
i could collect some premium
if the market with
comes back a little bit i can
take that money
collect their premium
and if it goes over i i don't think it's going to go over much our prices have
that stock put all pulled away from me
and then i can sell to more fifteen dollar make it puts to offset that
hopefully that makes sense to everybody i'm just gonna show you the chart so you
can see you roughly what it looks like
as you can see there's a lot of resistance in the fifteen dollar ranged
in may or may not push above that on the site this one
high expectation another small pull back
within the party and uh... ranch so i could sell snake approach than if i need
to them
aka goes over because over it's not a big deal to me
he's economy to go is the way you have to look at this stuff
so anyway let's we have excel at football are analyzed tab
we have it set two singles
it's just a couple days before september up expirations so we're going to look at
it
and as you can see there to be thirty to two thirty four cents so what we would
do this
just click on cell the bid to sell it
and it creates the option and read
mover to to since i own two hundred shares in each option contractors worth
a hundred shares
and i'm gonna go right in the middle between thirty-two and thirty-four
then what you would do
click confirm incentive
and you get this window
and then you would just send and it sends it to the market
basically i can make us sixty three fifty after commissions
you
doesn't seem like a lot
i have a price twenty eight hundred at three thousand dollars invested in it
so if you were sixty six dollars a month
say
that would be quite a bit of
money to be be had about seven hundred twenty dollars on sixty six hundred
dollars for twenty eight hundred dollars as a pretty good rate of return for the
year
pd
thank you for watching
this is selltheta.com
discussion on covered with a simple covered call transaction using the
thinkorswim platform