There are 2 drawbacks to covered call selling.The first one is if the stock you own takes off up you will miss out on just about all of the profits on the stock and be forced to liquidate the stock. The second drawback is if the stock plummets down you loose a lot on the stock and make hardly anything on the sold call. The strategy only really works if the stock is flat or goes slightly down or slightly up.
How do you purchase bearish ETFs ? Wouldn't that be buying against the downtrend? Wouldn't you be selling bearish ETFs to go with the trend? Confusing part of the video.
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if that covered call goes against you within the 1st week you are screwed are you not? you'd be investing that 5000 to potentially make 142
There are 2 drawbacks to covered call selling.The first one is if the stock you own takes off up you will miss out on just about all of the profits on the stock and be forced to liquidate the stock. The second drawback is if the stock plummets down you loose a lot on the stock and make hardly anything on the sold call. The strategy only really works if the stock is flat or goes slightly down or slightly up.
WEEKLY COVERED CALLS, THURSDAY TO FRIDAY.
It the stock goes above the strike and you want to still own it then buy back the call to close it out.
Gosh -- and I thought this wouldn't be interesting!
How do you purchase bearish ETFs ? Wouldn't that be buying against the downtrend? Wouldn't you be selling bearish ETFs to go with the trend? Confusing part of the video.
The value of the etf increases as the price markets goes down.