Strike Prices for Covered Call Beginners - FULL Explanation
ฝัง
- เผยแพร่เมื่อ 3 ต.ค. 2024
- In this video, I do a beginner's step-by-step tutorial on how to sell a covered call and go in-depth on how I choose strike prices using my 3 guidelines:
1. Do I want to keep or sell my shares?
2. Which delta do I choose?
-Keep: 0.10-0.30
-Sell: 0.30-0.50
3. Look at the charts
-Horizontal lines (support and resistance)
-Diagonal channels (support and resistance)
Keep in mind that when you sell covered calls, you will always risk getting your shares called away.
In the end, see what fits your risk tolerance and lets you sleep better at night.
Let me know if there are any other topics you would like me to make a video on. I greatly thank all of you for your support all these years.
I hope you get a lot of value from this video!
-Steve :)
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Out of all the video's on this you def explain it the best. Thank you
you are. a great teacher - thank you!
This is a great video....most of the other videos just tell you what a covered call is.... this tells you how to do a covered call, strike price and deltas.
Thank you sooooooo much I was so confused and now I understand it you are a great teacher. Thank you so much I am so happy 🤗🤗🤗🤗
You're very welcome!
Lots of value from this video 📹 👏
Talk about monthly dividend ETFs like QYLD it pays 1% per month
You actually helped me understand it better than aynone on here so THANK YOU!!! New subscriber!
Best best best delivery ever seen. I study 2 years and this video is first time I feel confident here I start to understand. Thank you Steve. You a pure love.
Another great video Steve. I would love to see a video on how we can do this if we were selling a put option/cash secured put. What delta would you pick. Also, please make a video on the pros and cons of choosing a weekly expiration compared to a monthly expiration. Thanks again for the video!
this
Thanks Steve for talking about the technical gragh side. Also I am not getting my notifications when you go live.
You explain to all this so well!! Thank you!!
This is a gem 💎 thank you!
Great video thanks Steve!
You’re such a good teacher
Thanks Andrea! :)
@@CalltoLeap you’re welcome!
@@CalltoLeapcan I ask for a video recommendation? What is an HSA? I am trying to learn more about them but it feels like everyone but you speaks a different language when it comes to finances lol
Good vid. #1 guideline is important. A good follow-up vid would be the time frame choice(s) you mentioned. Thanks & keep up the valuable vids.
Amazing Video Steve. Hope to meet you someday. I worked as licensed trader for few years and your explanation covers all the basic information for beginners.
Thank you sooooo much!! you are a so generous for sharing your knowledge!!
Great presentation, Steve. I really learn a lot from this video. Can you create a video showing how to buy back a call option, if you want to cancel the call before expire. Looking forward for more video.
I'm curious too. I'm afraid my strike price isn't high enough and my contract might get called away before expiration date.
This might be the only thing missing from this otherwise excellent video. You can prevent your shares being called away by buying back your call options.
Great teacher!
Please make a video on expiration dates for covered calls. Thank you for creating amazing content!!
Thanks I finally understand a lot more .
Thanks am a beginner I hope to keep learning with you. Thanks it very easy how you teaching.
If you actually read these. Then God bless you. And tha k you for the info. I've been trading covered calls but refreshing occasionlly on the basics is important. Keep it up.
I actually read this! Thank you so much for your words of encouragement!
Good overview and thanks for explaining covered calls. Could be good to explain the wheel strategy also. Can collect premium selling puts to buy the 100 shares, but at the price you feel comfortable buying it at.
Thank you so much for your hard work. I'm new for invest to stock.
Thank you. You are awesome. I already made $500 in 2 weeks. Thank you.
Hi Steve. New subscriber here. Thanks so much for putting this content together. Other content creators will put so much information into a 30 minute video. Every sort of option play imaginable, etc. It becomes overwhelming.
What I like about your videos is that you break things down into small bites.
Hi Steve, love to see a video on the best Covered Call and Naked Puts on NVDIA stock!!
Thank you
Great video, thank you.
Thank you
This is a great video. I'm going to re-watch it until I get a better understanding 🙏🏻
Aw thank you! Means a lot to me!!
Would love to see this on Fidelity
This video made it so easy to understand. Is there a part 2 for rolling a recovered call (up or down)? thanks
Great! For the first time, I have begun to understand options. Question, what happens when the option expiries?
Awesome! If the option expires, it either expires worthless or you get assigned/called away. I have covered call videos that explain this!
Hi Steve. Great video and wonderful teachings. My question is on the 100 shares bought. If the stock moves up or down does it affect your P&L..... I'm guessing that's why you do a technical analysis?
Great. thx
Love it. Can you please explain the tax when exercise the order. Do I pay 30%of tax due to I holding the stock less than a year. Thank you. 🙏
I am curious why you choose expirations of 30-45 days.
Thanks Steve, really useful content. You touched on tax treatment of capital gains, which I understand, how is the fee for the option taxed? Is it as income? And do you hold the shares in your own name? Thanks so much
Yes, want that.
thanks Steve.. this one was really good
Thanks Shelby!!
Thank you Steve!!!
Thank you!
Yay, thanks Steve!!!
Yay! Thanks Juliet!
Can you do a video on fidelity’s FDLXX
Hi Steve, thank you for your generosity by sharing the knowlege on CC. For the two parallel lines on the trading view, the magenta line and the supported line, do you draw them or it came with the graph. Thank you . God bless.
Hi Kim! I drew them myself! I usually like to draw the "best fit lines" for top and bottom touch points to create the channels.
This is extremely helpful Steve! Trying to learn as much as I can with selling covered calls because I want to keep my shares for long term and this video helped me understand what I should do. For the graph, what "time" do you normally look at when selling week and month expiration date? for example do you use the 1Day or 1Month?
Hi Jeremy! Thanks a lot! Sure, I can make video on the difference on expiration dates and their pros and cons.
If you want to keep your stock, should we sell puts to buy shares back at lower price for growth stocks
Keep rolling them out
Curious why you generally chose monthly contracts vs say, weekly?
Higher premiums.
You explained this very well, but I'm still confused. Like what happens after someone buys vs your etf's if you want to keep it. I know it me and my brain🥴
Great video ! Can you plz do how to do covered calls in Fidelity , what if we already have 200 shares of (?) stock . Can I move to next step ? What is margin ?
Hi Steve, please make a video on longer and shorter expiration dates. Thanks!
Will do!
see you soon, Steve~
See ya!
yes, video for short/long expiration
How do you try the lines? Or are those preset things in Tradingview?
Thanks for the great video, Steve! Can covered calls be sold on the SPY?
Yep! SPY is option-able!
@@CalltoLeap Thank you! 🙂
Great videos! Which indicators that you are using in TradingView to show those lines?
I usually have a 50 / 200 MA and Bollinger Bands turned on.
Isn't the commission paid for selling puts and call options also considered capital gains?
Steve can you cancel the covered call sale early and how does that affect the premium?
Can you make a video on put?
Let's do one with MO.
Hey Steve, what happens if I choose in the money strike option, what price do I sell my covered call?
If I sold puts At The Money, and sold calls At The Money would that be a good wheel strategy? For someone that doesn’t care about getting assigned
What happens if the stock never hits the strike price by the expiration date? Do you just keep the stock or does it sell at the strike price regardless?
If the price at the expiration day DOES NOT pass the strike price, you will keep the premium and the your shares.
If the price at the expiration day is HIGHER than strike price, you still keep the premium and your shares will be hauled away at the strike price.
The upside of sell covered call is you collect a little money while your shares sitting in your account doing nothing.
The downside is you will miss out the unexpected spike in price and losing protential gain.
It is all up to your greedy and tolerance.
@@Peaceofmind7071but what about if the current price is about to hit the strike price and I don’t wanna sell my shares ,can I buy my own covered call again?
Ironically that is the BEST scenario. You keep the premium collected as well as any growth of the stock
Why would someone ever choose the highest premium deep in the money? Why does that option exist? Loss in stock price would be greater than the premium received. Right?
I always put notifications for when it starts, but never get notified...
Hm, that's weird. Does this happen to anyone else?
Hm, that's weird. Does this happen to anyone else?
Yes. It has for me a couple of times. I have missed several livestreams. No clue what causes it.
Yes I keep missing the live streams, 3 times now 😟
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Amazon pays no dividend
are 100 shares a minimum number of shares to buy, in order to sell covered calls?
Yep! You need 100 shares!
This is for selling covered calls
@@CalltoLeap100 stocks and 100 etf as well? When it comes to SPY, that's pretty expensive
How does this trading stuff work? I'm really interested but I just don't know how to go about it. I heard people really make it huge trading
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