19 апр. 2019 г. · The biggest risk is that the stock drops in price and that would cause a loss if you sold the shares at the lower price.

9 июн. 2023 г. · The max profit zone on a covered call is above the short strike. Believing you're going to sell calls, the stock is going to hover above your basis.

9 мар. 2021 г. · And the main risk is that you're going to have to potentially sell a stock for a lot lower than the market price, as you mentioned.

3 окт. 2023 г. · To sell covered calls you need 100 shares of that stock. If the stock doesn't hit the strike, then the call you sold expires worthless and you keep the premium.

7 июн. 2024 г. · Covered calls on a long term stock are a good way to add a few points of profit. You are trading possible gains for a guaranteed premium. All ...

10 янв. 2023 г. · The drawback to this approach of course is that there will be periods of time where the market will price you out. The price will be too low to ...

28 нояб. 2023 г. · Price dropping is the only way you could lose money. That said you should be aware of possible fees from the options. Some bad brokerages will ...

1 июл. 2021 г. · Practically people tend to sell covered calls for financial goal reasons (i.e. they rely on the generated income) or psychological reasons (i.e. ...

10 апр. 2024 г. · The downsides to a covered call is 1) you no longer have the ability to safely sell that stock without closing your covered call position first ...