Covered Calls Explained: Options Trading For Beginners

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  • เผยแพร่เมื่อ 28 พ.ย. 2024

ความคิดเห็น • 443

  • @clearvaluetax9382
    @clearvaluetax9382  ปีที่แล้ว +38

    Our Free Stock Options Videos:
    Options For Beginners (The Complete Guide): th-cam.com/video/NW1ziUDjB7w/w-d-xo.html
    Call Options Explained: th-cam.com/video/kC28MuQPyu8/w-d-xo.html
    Put Options Explained: th-cam.com/video/tlcCPX4t9y0/w-d-xo.html
    Covered Calls Explained: th-cam.com/video/D5Rjx_7XG2U/w-d-xo.html
    Cash-Secured Puts Explained: th-cam.com/video/YfC7DYri4co/w-d-xo.html
    Free Beginners Guide to Stock Options on our Website: clearvalueinvesting.com/education/options-and-trading/
    GET up to 14 FREE STOCKS when you open up a stock account here: a.webull.com/i/ClearValueTax

    • @mr.pipsp.m.w2008
      @mr.pipsp.m.w2008 ปีที่แล้ว

      Can u kindly do something on buying puts and selling puts

  • @awaite1980
    @awaite1980 ปีที่แล้ว +15

    Best teacher I’ve seen on TH-cam. Wish you taught CPA exam classes.

  • @sethwebb3578
    @sethwebb3578 2 หลายเดือนก่อน +25

    Wow. I first started watching your videos in peak covid while i was homeless. 3 to 4 years later, I return to your channel as it is part of my intro to investments class. Thank you!!!!!

  • @gunarssonbilly.
    @gunarssonbilly. ปีที่แล้ว +144

    Your teaching skills are top notch. Was already on the verge of quitting trading because I once saw it as a luck game. I'm glad to be very profitable now and I bought my first house through trade and not salary. Trading requires consistency and perseverance there's always win at the end of the tunnel if you focus.

    • @Rechealhendarson
      @Rechealhendarson ปีที่แล้ว +1

      Great congratulation 🎊

    • @jk.5803
      @jk.5803 ปีที่แล้ว +1

      Congratulations dear honestly you really got me the moment you said you once saw it as a luck game, Truth be told i still see it that way till date and hopefully someday i will be very profitable i'm encouraged

    • @Missandrew88
      @Missandrew88 ปีที่แล้ว

      Big win!! Keep it up, Perseverance and consistency remains one of the key factors to profitable trade.

    • @gunarssonbilly.
      @gunarssonbilly. ปีที่แล้ว +1

      ​@@Missandrew88Got it!! I so much saw it as a luck game in the past especially using demo or paper account you keep winning soon as you put in real money loses begins. I understand that feelings I'm glad I overcame all that and now I'm profitable.

    • @aibai-d5u
      @aibai-d5u ปีที่แล้ว

      Awesome!!

  • @gameplayparadiseofficial
    @gameplayparadiseofficial ปีที่แล้ว +71

    I learned covered calls last year and watched many other videos. This video by far is the most clear and easiest to understand. Awesome for newbies that are interested. The inverse version of Covered Calls is Cash Secured Puts. Good stuff Brian!

    • @JC-li8kk
      @JC-li8kk ปีที่แล้ว

      So for example you think Ford has a floor of $11 & won’t go below $11. You would want to buy a cash secured put when Ford gets close to $11 with a strike price at or below $10? Or is it possible to buy a cash secured put with a strike price of $10.85 while Ford is trading at $14? The premium won’t be much though?

    • @FoodieQueenBee
      @FoodieQueenBee ปีที่แล้ว

      @@JC-li8kkcash secured put is profitable on bullish market imo

    • @zo3821
      @zo3821 ปีที่แล้ว +4

      Sell a call = bearish
      Buy a call = bullish
      Buy a put = bearish
      Sell a put = bullish

  • @donaldjaggersjr
    @donaldjaggersjr ปีที่แล้ว +132

    Hi Brian! My parents never gave me any guidance, I have 3 parents and all 3 are loosers in everything they do. Left home at 17 yrs old. Honestly! You've giving me only great guidance and I do appreciate it and look foward to more of your intelligence. Im 62 yrs old and is retired. I wish I knew you back in the 70's. I would have succeeded decades ago. Because of you, I got into Crypto in 2021 and I'm now learning how to play stocks. I now have a great future to look forward too. But as I always say! Better late then never! Thank you so much for effort and sharing your knowledge with us. 😊

    • @clearvaluetax9382
      @clearvaluetax9382  ปีที่แล้ว +15

      I’m happy to hear things are going well Donald! That is great!

    • @hanhb6047
      @hanhb6047 ปีที่แล้ว +8

      I bet Brian was a kid back in the 70s.

    • @Trade2Invest-
      @Trade2Invest- ปีที่แล้ว +1

      ​@@hanhb6047 he said he was 17 soooo he's teenager?

    • @natej6671
      @natej6671 ปีที่แล้ว +12

      Glad you're learning but don't be too hard on your parents .... their parents probably never taught them either.

    • @donaldjaggersjr
      @donaldjaggersjr ปีที่แล้ว +6

      @@Trade2Invest- I had to leave home in 1978. I was 17 then. Born 1961.

  • @delboo21
    @delboo21 3 หลายเดือนก่อน +8

    Best, concise , clear, unambiguous explanation of covered calls.

  • @richardbornemann806
    @richardbornemann806 10 หลายเดือนก่อน +9

    This is the best video intro to covered calls I've ever watched. Nice work. Thank you for this very clear explanation.

  • @fabiGBOtown
    @fabiGBOtown ปีที่แล้ว +12

    I've been following you for quite a while and I have to say, this style of video is your strength 💪

  • @Arika_VR
    @Arika_VR 5 หลายเดือนก่อน +2

    Brian, you are the best teacher. No one explains like you do.

  • @MahamatAdam-bu1ci
    @MahamatAdam-bu1ci 6 หลายเดือนก่อน +2

    Subscribed after unsuccessful 3 video clicks and about 20 wated minutes.
    I must say, you're brilliant in breaking down the complex financial wordings.
    Thank you man.

  • @CamillaStenmark3
    @CamillaStenmark3 หลายเดือนก่อน +46

    I Hit 12k today trading. Started last month 2024. Financial education is indeed required for more than 70% of the society in the country as very few are literate on the subject. thanks to Louise O'Brien for helping me achieve this.

    • @RyanMaverick8
      @RyanMaverick8 หลายเดือนก่อน +2

      I'm happy to see Mrs Louise O'Brien mentioned here, my husband recommended her to me when I was in Germany during Covid, she's amazing.

    • @AveryBrice8
      @AveryBrice8 หลายเดือนก่อน +1

      That woman has changed my life for good. I attended her investment class couple of weeks last year and she’s the best when it comes for Guidance.

    • @Jacob.Parris
      @Jacob.Parris หลายเดือนก่อน +3

      I'm new at this, please how can I reach her?

    • @DeelBailey
      @DeelBailey หลายเดือนก่อน +1

      I was skeptical at first till I decided to try. It's huge returns is awesome. I can't say much

    • @CamillaStenmark3
      @CamillaStenmark3 หลายเดือนก่อน +4

      She communicates on tele gram..

  • @kuanhhuang
    @kuanhhuang ปีที่แล้ว +12

    Great Video! Instead of picking individual stock, you can also trade well-diversified ETF, such as SPY and QQQ. They are less volatile. i.e less premium but more stable. They are kind of expensive though.

  • @TwiLightVids
    @TwiLightVids ปีที่แล้ว +4

    Brian got me into Webull a few years ago, always listening to his advice

  • @Kevin-sr8yx
    @Kevin-sr8yx ปีที่แล้ว +7

    This is great! Seems like it's best to buy options with a long duration, execute the contract when it makes sense, then sell a call option with a shorter duration.

    • @soledoutny23
      @soledoutny23 14 วันที่ผ่านมา

      Ezzzz money

  • @sauboon8888
    @sauboon8888 8 วันที่ผ่านมา

    This is the best covered call video on youtube.

  • @JohnNg-j5j
    @JohnNg-j5j 11 หลายเดือนก่อน +3

    I just came across your videos and I’m starting to understand more about options trading, especially how call options and covered call options work. Look forward to more of your content!

  • @Doctor.Scaper
    @Doctor.Scaper ปีที่แล้ว +3

    Best video for covered calls. So simple to understand!

  • @okinajamel1002
    @okinajamel1002 ปีที่แล้ว +1

    Brian is a pure teacher

  • @jettturbo1496
    @jettturbo1496 ปีที่แล้ว +3

    No clue what options trading is and am going to start learning. I do know one thing though if it's coming from Brian, you can pretty much take it to the bank. Thanks for the info!

  • @MyNameIsTim1337
    @MyNameIsTim1337 ปีที่แล้ว +3

    This video was even more interesting as I have been selling Covered calls of Intel (INTC) (all out of the money) since the price hit $30 last year. Made about 15% over 1 year. Only actually getting assigned at 34$ earlier this month.
    Feels great, but gonna have to pay Short Term Gains tax... not looking forward to it😊

  • @Martin-jk2ng
    @Martin-jk2ng ปีที่แล้ว +6

    Your teaching skills are immaculate. Excellent alpha. Thank you so much

  • @Syrnyguy
    @Syrnyguy 2 หลายเดือนก่อน +4

    Great video! Very simple and easily understood

  • @canonfodder808
    @canonfodder808 ปีที่แล้ว +6

    Love this video. So thankful for the teachers heart you have. I am unable to attend your webinars due to work scheduling so these videos are very mch appreciated!

  • @Shaftya_McNasty
    @Shaftya_McNasty ปีที่แล้ว +2

    Thanks for these videos. Made my 1st 1k on call options.

  • @dankwolf442
    @dankwolf442 ปีที่แล้ว +8

    Never be upset at yourself for making money; if the future price goes up and you could have made more, you still locked in guaranteed profits.

  • @jeffnaval4894
    @jeffnaval4894 ปีที่แล้ว

    Thank you for explaining stocks & option stuff and not just complaining over and over about taxes.

  • @michaelmarshall8503
    @michaelmarshall8503 ปีที่แล้ว +15

    Bro thank you so much. This video is a blessing for me and the timing couldn’t be better. I thank God for you sharing this life changing information with the world.

    • @clearvaluetax9382
      @clearvaluetax9382  ปีที่แล้ว +2

      Thank you for those kind words Michael, I hope the video helps!

  • @uno2go
    @uno2go 8 หลายเดือนก่อน

    This is one of the best explanations I've found in YT for CCs.
    Here is an honest question, looking for an honest answer:

  • @orionsdad1
    @orionsdad1 3 วันที่ผ่านมา

    Excellent presentation. It was all very clear. Thank you.

  • @downtownPatna
    @downtownPatna ปีที่แล้ว +4

    Thanks for the education! Can you discuss tax implications of income from covered calls? Is it better to sell covered calls from tax deferred accounts?

  • @yrajproductions2991
    @yrajproductions2991 9 วันที่ผ่านมา

    Great clear explanations including actually executing the trade. 👏👏

  • @miss_nobody9876
    @miss_nobody9876 ปีที่แล้ว +1

    You are my most favorite channel in TH-cam 😇

    • @qdood
      @qdood ปีที่แล้ว

      ​@clearvaluetax93811spam account ignore and report

    • @clearvaluetax9382
      @clearvaluetax9382  ปีที่แล้ว

      Thank you for all the support!

  • @Sharpshooter649
    @Sharpshooter649 ปีที่แล้ว

    This is a very good INTU call commercial. It makes me want to go buy INTU calls

  • @kevn99
    @kevn99 ปีที่แล้ว +1

    By far the best tutorial on selling covered calls on TH-cam. Thank you I feel empowered to begin this journey.

  • @TahitianBlissMeeBee
    @TahitianBlissMeeBee ปีที่แล้ว +1

    great vid ty! can you pls explain in simple terms how to gain money from sideways pattern with buying and selling a leg above and below? i'm new to all this and would like to understand how to take advantage of this within a one week time frame.

  • @paulmosca4351
    @paulmosca4351 5 หลายเดือนก่อน +3

    Remember: You need to buy 100 shares of $Stock first. Then you can sell the call option. Math at time stamp 15:01.

  • @andriibiletskyi6479
    @andriibiletskyi6479 ปีที่แล้ว +2

    Best explanations I've ever heard! Thank you!

  • @desiexpat7
    @desiexpat7 9 หลายเดือนก่อน

    Fantastic explanation. You made my day...will sell covered calls on my etfs from today

  • @kblmnop67891
    @kblmnop67891 ปีที่แล้ว +3

    I’m totally going to have to try this

  • @Learn2oo
    @Learn2oo หลายเดือนก่อน

    This video is fantastic! Thank you for explaining things so clearly!

  • @LifeChangingWealth
    @LifeChangingWealth ปีที่แล้ว +4

    This was truly an amazing video, but can you explain the tax implications of when those securities get sold? If the options are exercised and you are required to sell them to someone else do you have to pay capital gains on the sale of those securities? Also, do you pay short term capital gains on the income generated from the sale of the contract?

  • @somenathchakraborty350
    @somenathchakraborty350 2 หลายเดือนก่อน +1

    Very helpful video, in future videos please discuss more about risk as others do not talk about that clearly.

  • @stefli9294
    @stefli9294 ปีที่แล้ว +1

    thanks Brian for concise explanation of the scenarios... this helps a lot for I just started options trading.

  • @jasonfulk4935
    @jasonfulk4935 ปีที่แล้ว +5

    Wow Brian. 2 great videos. I learned so much in 30-40 minutes. Appreciate the slow and easy. Thanks for your time.

    • @clearvaluetax9382
      @clearvaluetax9382  ปีที่แล้ว +1

      I appreciate all the support, thank you Jason!

  • @louisang5161
    @louisang5161 ปีที่แล้ว +3

    Wonderful explaination . Thankyou so much for educating

  • @shamzjones
    @shamzjones ปีที่แล้ว +2

    KEEP THEM COMING! Thank you Brian!

  • @2coolartsmusicmom572
    @2coolartsmusicmom572 11 หลายเดือนก่อน +1

    I like your videos more than any I have seen. Thank you for helping me understand

    • @clearvaluetax9382
      @clearvaluetax9382  11 หลายเดือนก่อน

      You are so welcome! Thank you for all the support!

  • @wuggou
    @wuggou ปีที่แล้ว +5

    Hi Brian, does your broker still sell off your shares at the end of the contract if the contract ends up being worthless or do you keep the shares with an unrealized loss?

    • @clearvaluetax9382
      @clearvaluetax9382  ปีที่แล้ว +3

      If the contract you sold ends up being worthless, you still hold your shares. The contract you sold disappears. And you keep the money that you received for selling the contract.

    • @wuggou
      @wuggou ปีที่แล้ว

      Thanks for clarifying!

  • @Stockpickervalueoriented
    @Stockpickervalueoriented ปีที่แล้ว +2

    Great strategy with good risk aversion.

    • @clearvaluetax9382
      @clearvaluetax9382  ปีที่แล้ว

      Yes, people believe this is a risky, but it’s actually risk aversion.

  • @deannekroeger3178
    @deannekroeger3178 ปีที่แล้ว +1

    Thanks, Brian for the update 😀 ❤ and Have a very nice day too 👋

    • @clearvaluetax9382
      @clearvaluetax9382  ปีที่แล้ว

      It’s always so wonderful to see you Deanne! I wish you a great day!

  • @IsaacC20
    @IsaacC20 8 หลายเดือนก่อน

    @17:35 Also, don't sell call options on days where the stock price is low - because the buyers will also tend to not pay as much for the option. Sell call options when the underlying stock price is high - the premiums will tend to be high.
    That way, if the stock price falls again, the call option will be worth less and you can buy the same call option to close your position. Since you sold the call option for more than you bought it back for, you profit from the difference in premium price.

  • @WHOSTHEREYO
    @WHOSTHEREYO 3 หลายเดือนก่อน

    Quick question, if you do 60 days and the strike price already reached within 1 week say. Do I have to do anything to sell it? Or I have to wait 60 days to close it? Thanks in advance for your teaching

  • @yourbrokerjamie9293
    @yourbrokerjamie9293 ปีที่แล้ว +8

    Brian. Thanh you. Your explanation skills are stellar

  • @RayneClouds10
    @RayneClouds10 16 วันที่ผ่านมา

    Thank you so much. You are so easy to understand

  • @Ghas22
    @Ghas22 ปีที่แล้ว +3

    Is there any chance you do dividends investing for beginners? Also, since you're a CPA, it would help to know potentially tax implications. 😊

  • @dbzgtful
    @dbzgtful 6 หลายเดือนก่อน +1

    Do I have to have to hold the covered call until expiration date or can I buy to close and still receive the income?

  • @tanyawarren2659
    @tanyawarren2659 ปีที่แล้ว +2

    Thank you been wanting to figure out calls and puts

    • @clearvaluetax9382
      @clearvaluetax9382  ปีที่แล้ว

      I hope this has been helpful Tanya! I'll have more videos to come.

  • @Balancedtrader12
    @Balancedtrader12 หลายเดือนก่อน

    very nicely explained compared to other vdo i have seen...good job

  • @johnhwang6096
    @johnhwang6096 3 หลายเดือนก่อน

    Very clear explanation. Thank you.

  • @Adventuresoflaventure
    @Adventuresoflaventure 10 หลายเดือนก่อน

    Thank you Brian for simplifying this. Love your channel.

  • @luisguerra1975
    @luisguerra1975 15 วันที่ผ่านมา

    thank you so much! Your video helped exponentially!!!

  • @Ekamsingh-1313
    @Ekamsingh-1313 12 วันที่ผ่านมา

    Very good information from you always. If someone wants learn from you. Good job and thanks

  • @ChiefKene
    @ChiefKene 7 หลายเดือนก่อน

    I’m telling you all, this dude is legit. Give you the right information to make prudent decisions

  • @Chinny_Winny
    @Chinny_Winny ปีที่แล้ว +1

    Thx B! you dumb it down super well!

    • @clearvaluetax9382
      @clearvaluetax9382  ปีที่แล้ว

      It’s my pleasure! Thank you for all the support Matthew!

  • @Rlec021
    @Rlec021 16 วันที่ผ่านมา

    Can the option be exercised prior to the expiration date or on expiration date only?

  • @shanleyjorge-elde1445
    @shanleyjorge-elde1445 8 หลายเดือนก่อน

    Thank you Brian! Which brokerage account would you advise to use for option trading? I am currently struggling to find brokers which allow to trade stock options.

  • @yiweizhang286
    @yiweizhang286 ปีที่แล้ว +1

    This is a great way of deleveraging your position from a delta one.

  • @SpookyGhost61
    @SpookyGhost61 3 หลายเดือนก่อน +1

    Great explanation, subscribing.

  • @JamolUmar
    @JamolUmar ปีที่แล้ว +1

    Could you please talk about how we can check news and updates to predict the market? Especially shares and Crypto currencies

  • @justme_1111
    @justme_1111 ปีที่แล้ว +2

    Thank you for this !

  • @conheo4
    @conheo4 ปีที่แล้ว +2

    I hope there is a part 2 of covered calls of this video for rolling up and out or rolling down.

  • @Joefrankizle
    @Joefrankizle ปีที่แล้ว +1

    Would Risk be gauging if a stock is going to do poorly, cause your stock would lose value and no one would pay for that option?

  • @damiandamiano3651
    @damiandamiano3651 4 หลายเดือนก่อน

    you are very good teacher

  • @Nicolozo
    @Nicolozo ปีที่แล้ว +2

    This released literally right when I was about to make my first trade lol

  • @patriceg.6644
    @patriceg.6644 ปีที่แล้ว

    few quick questions? you said you can not lose money BUT if u have to own the underlying stock first wouldnt you be losing money initially anyway by buying the 100 shares first?
    Also if the covered call expires worthless wouldnt you be losing money by owning 100 shares of a stock no one wants?

  • @nicletexier4053
    @nicletexier4053 8 หลายเดือนก่อน

    Great video and one question, in the scenario where you bought INTC at $32, strike was $34 but after 2 months the stock price was $28 the option wasn’t exercised. Once the 2 months elapsed and the price was $28 are you forced to sell at $28 even if the option wasn’t exercised or as you the seller you keep your premium and shares, just they’re only at $28 now?

  • @LeslieVick
    @LeslieVick 9 หลายเดือนก่อน

    Brian I have enjoyed the 3 tutorials I have watched on Options, they have been the best by far I have seen online anywhere. I am hoping you add to these by covering the topic of rolling an option ( and the variations of this) as this would help me and many other too I'm sure. If you do how will I know?

  • @triple7marc
    @triple7marc 11 หลายเดือนก่อน +1

    Fantastic video! I'm studying for my investments final and this really helped me.

  • @dancer-rh4if
    @dancer-rh4if ปีที่แล้ว +2

    Good video. Nice presentation & great graphics. Did you omit dividends for simplicity?

    • @clearvaluetax9382
      @clearvaluetax9382  ปีที่แล้ว

      Yes. I actually have a video on dividend paying stocks and CCs.

  • @LVNHRAM700
    @LVNHRAM700 ปีที่แล้ว +2

    Thanks for all you do!

  • @maximodessa
    @maximodessa หลายเดือนก่อน

    best explanation there is, thank you so much) love your videos

  • @User567-qg6ek
    @User567-qg6ek 7 หลายเดือนก่อน

    Keep up the good work brother! Also, is there anything you don’t know in the finance world? Housing market, tax laws, retirement plans, and now derivatives???

  • @joeyho7646
    @joeyho7646 5 หลายเดือนก่อน

    Do you pick your own price for covered calls or do you search the market for similar prices and put that as your price?

  • @VladimirBirukov-c5w
    @VladimirBirukov-c5w หลายเดือนก่อน

    Твоя стратегия по бинарным опционам реально работает!

  • @Shane-yx2hi
    @Shane-yx2hi ปีที่แล้ว +2

    Great video broke it down very well

  • @wenwenbai
    @wenwenbai 11 หลายเดือนก่อน +1

    Thank you very much! You are such an amazing educator.

    • @clearvaluetax9382
      @clearvaluetax9382  11 หลายเดือนก่อน +1

      And you are an awesome person for supporting hamsters!

  • @curtflirt2
    @curtflirt2 2 หลายเดือนก่อน

    Pretty clear explanation, Thanks

  • @Invincible5426
    @Invincible5426 หลายเดือนก่อน

    so clear -so good - ty!

  • @khan1aj
    @khan1aj 2 หลายเดือนก่อน

    Will you always be assigned if the stock price is above the strike price at expiration?

    • @clearvaluetax9382
      @clearvaluetax9382  2 หลายเดือนก่อน

      Yes, your shares will be “sold” at the strike price.

  • @tuanduong7357
    @tuanduong7357 ปีที่แล้ว

    thank you Brian. You explain it extremely well.

  • @undivided_unified
    @undivided_unified ปีที่แล้ว

    this is a great explanation and revealing that the stock market is just speculative gambling and nothing else

  • @BtcBroccoli
    @BtcBroccoli ปีที่แล้ว +3

    Yessss, thank you so much. I literally have been trying to understand this

  • @pipedownsomeL
    @pipedownsomeL ปีที่แล้ว +4

    Killing it🔥

  • @AT_PokemonTCG89
    @AT_PokemonTCG89 ปีที่แล้ว

    Hi Brian! Amazing. Content! Quick question for your first scenario on the the covered calls, if the stock goes downs you lose $2 on the stock but gain whatever earnings from the call you still keep the 100 stocks right? You’re just down -$2 or whatever amount the market value is?

  • @Btc_bott
    @Btc_bott 10 หลายเดือนก่อน

    Do you keep your shares if they dint exercise and keep the premium

  • @willthekiller1
    @willthekiller1 ปีที่แล้ว

    while you are selling call options, do you still get dividends?

  • @itsjaynguyen
    @itsjaynguyen 3 หลายเดือนก่อน

    These videos are gold

  • @GauravParhar
    @GauravParhar 9 หลายเดือนก่อน

    Thank you for this very helpful video! Almost at 2 million subs, congrats!

  • @AndresMartinez-zo5lk
    @AndresMartinez-zo5lk หลายเดือนก่อน

    Great video and easy to understand, thank you, big like