100% Success Trading COVERED CALL Options!
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- Опубликовано: 7 фев 2025
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In this video we will talk about an options strategy called the COVERED CALL. In the covered call you are going to use 100 shares of a stock that you open as collateral to collect options premium. You do this buy selling a call options. When you do this the buyer of the option will pay you for it. The money received is called premium. You can do this over and over to make more money inside your portfolio.
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DISCLAIMER: The content discussed in these videos are solely my opinion and should never be used as financial advice. This channel is for entertainment purposes only. Make sure to consult with a professional before making money decisions. This video and description contain affiliate links, which means that if you click on one of the product links, I’ll receive a small commission; all of which helps grow the channel! Thank you for your support!
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so when do the cc disappear from my acct after they expire, its exp day today after closing hours and they still on my screen
Great overview of CCs. I am a CC junkie and this was one of the best “un-hyped” videos out there. I prefer to do them on Monday for Friday expiration at 25 delta. If I get roughly the same premium every week x 52 weeks, the “yield” can be large, where I really don’t care if the stock returns anything over the year. Makes you think of the stock in a different way.
What stock(s) would you recommend for CCs as a seller? Sounds like you found some that are stable.
@@someguy5920 well, stable in terms of getting similar premium @ 25% ITM level every week. On Tesla, I get around $1k week per contract at that level. That’s $52k/year in income on capital of around $67,000 (based on today’s price). So, even if Tesla returns 0% for the year, I am getting around 75% in income. You just got to have the stomach for the volatility (and of course enough $$ to buy 100 shares)
@@creditspreadtrading3893 So you're selling naked calls. Gutsy move. I admire that. I'm gearing up to do my first covered call. Based on videos I've watched, it appears to be an easy process on RH, but the etrade user interface is more complicated.
@@someguy5920 no, I’m doing covered calls on Tesla. I own 100 shares and sell 1 call a week against it. This week has been crazy as the stock tanked then shot up but that volatility is what generates the great premium on the stock.
@@creditspreadtrading3893 awesome
❤we have been married over 50 years. Own lots of stocks with low basis. Thanks for warning us and saving a huge tax hit! Have two covered calls in place and will close one quickly. The other is on a loser stock so will let ride a bit more.
I’ve watched so many selling call options videos and learned from you the most. Thank you for your very easy-to-understand explanations. Subscribed.
Welcome.
You can dial this in even more.
If you sell your call on a 1hr or 4hr chart and up high on the Bollinger band ... you will receive a better premium as well as a head start in profit as it will reverse in price soon... same with selling a put... just reversal on Bollinger band.. sell puts at bottom of band...
tax avoidance is a legitimate concern but you are right that it's better to make money and pay tax rather than not make money.
👍🏻
errors you made(unintentionally of course) at time stamp 24:47 , 24:52 and 25:11 you meant to say delta(not premium or theta).
i hope no one got confused anyway:)
Thank you
I think covered calls are great if you are down in a stock and you simply want to get out of the play and get a little profit. Might as well collect the premium in addition to the profit from an OTM call. If it expires OTM then you just keep the premium and do it again until the shares get sold.
Thanks!
Thank you so much for the Tip!!
What I have learned selling covered calls is always be comfortable if the worst case scenario happens, being assigned. So don't chase premium. Instead think about the opportunity cost if the stock rips. Also, if you get assigned you simply buy back and top up to 100 shares and enter into another covered call immediately. You can be a little riskier the 2nd time because the stock price has already increased (which got you assigned). So you can play the odds and slightly increase premium (risk) right after getting assigned and buying back in. The opposite with getting assigned when selling puts. When you are assigned selling puts and you now own the stock covered calls are much dangerous because there is more support for the stock to rise.
👍🏻
Just started selling call options on T & KO. Man it’s a nice feeling to make easy money on the premiums. Not making a boat load of money but I’m not greedy! Great video to learn from !
Right on!
@@thefrankperspective4247 absolutely !
Can you tell me what's T & KO and how you make that easy money?
yup but it all adds up when u do the math, but its exp today and 10pm but it says cc still in my acct w exp today, when do they disappear??
well hell, I didn't know there was a weekly option chain. Going to start doing this in my IRA, better late than never
Not trying to nitpick but I thought you might want to know, especially since you asked for corrections!
@24:47 when you're talking about DBX 26 strike you say "premium of .42", you meant to say "delta of .42"
@24:54 for 26.50 strike you said "premium of .3", should be "delta of .3"
@25:11 "theta that is below .3" should be "delta that is below .3"
It's pretty obvious what you meant but a true beginner could get confused, perhaps a quick edit with
some on-screen text corrections at those spots?
As others have already said you do a great job providing clear, concise, easily understandable videos. I'm glad I found your channel!
👍🏻
As a beginner , can thank you enough so far this is the most objective and concise tutorial I have seen on youtube... you are a Tru teacher... signing up for your patreon. thanks again.
Wow, thank you!
Thank you..after watching I realized how many blind option trades I made .. thank you I like the criteria you laid out
No problem
This was/is the best "Covered Call" video I have watch to date! THANK YOU.
Wow.. thank you so much for the kind words
@@BradFinn I already setup four CC trades using your formula yesterday.
same here
This explained so much I literally wasn’t sure if I could ever understand the concept until you explained it that way thank you!
Glad it helped!
Agreed, I’m ready now
This was pretty solid, I liked the delta percentage tip. I just sold my first call today, and didn’t know that.
Cheers!
Your the man!! Super glad i found your channel! The youtube algo must be working because i have never even searched for options trading.
Cheers
I’ve seen a lot of confusing videos about option trading on youtube and just looking for the “thumps up”. I got to say your videos are honestly one of the best I’ve seen so far. Appreciate you making things clear and easy to understand. Thanks man! 👍🏼
I appreciate that! Thank you for the kind words
Hey, Brad. Thanks for the great video. Toward the end when looking for a stock, you were looking at the Delta and said Premium and Theta.
Correct. Thank you
Great Teachings Brad, Thank you. On my very first Option Trade (Covered Call) my contract was Assigned Before the Expiration! I had to pay $45 Commission Fee for this transaction, had it gone to expiration, the comm fee would have been $10 - huge learning curves in my first week.
$45 in commisions!!! Sounds like you need a new broker. That’s rape!
@@BradFinn It's Qtrade in Vancouver Canada - we don't have the awesome platforms like USA - I wish
Brad, thankyou for the best 'how to' covered calls video on RUclips.
Cheers. Thank you
I really like your videos and I've learned a lot from them. I sold my first covered call and made a little scratch from the sweat of someone else's brow. I am taking this into retirement as my retired gig.
Nice.. good luck!
This was fantastic man. I couldn't figure out why i got 175 dollar premium on my first contract this morning then it says its negative 176 dollars haha. Been looking for hours for the answer.
Hi and Tx for that great video.
Could you please send the link to the tutorial that explain how to manage risk. For example : 1/ biggest risk for a covered call seems that during a krach, all the stocks fall like a knife > the maintenance margin goes to the moon, and then the big risk is the margin call. > What is the max maintenance margin for all stocks owned in the PF do you recommend ? 2/ How to calculate the max nb of stocks to be bought per position of stocks (on which we intend to trade covered calls ? Tx in advance
The risk management is up to you and how you write to contract
@@BradFinn Tx Brad? Problem is all the gains made with the options techniques and strategies (Covered calls...) can be wiped out in a handful of days in case of a krach if management of risk (used margin acutely) is not carefully studied and implemented; I thought you would have made a video about this subject of utmost importance. Maybe subject for a future video. Tx in advance
Solid tutorial. Can tell you are a teacher for sure haha
Thank bud
You are a great Teacher and honest and upfront tell the truth upfront.keep your good work.
I appreciate that!
I was so confused until I watched this thank you so much
Your very welcome
Thanks for the info - A few things you didn't mention: a) your $68 trade with about 2K capital used doesn't quite show how you'd turn a bunch of those into 2.5k per month, based on a 7K account, without looking for better opportunities or taking more risk. And b), there is the MAJOR downside of the stock tanking well below your premium profit margin.
Thanks for the feedback
Great video, Brad! What are the pros/cons of selling a covered call with an expiration date that falls between the Ex-Dividend Date and the Dividend Pay Date? Assuming that the underlying stock is a long-term hold for the seller, would the buyer of the call option receive the dividend, even though he didn't own the stocks prior to the Ex-Dividend Date? Is that risk 'baked into' the Delta? You mentioned that Buyers should never buy call options right before earnings reports - what are the things that Sellers of call options should never do? Thanks!
no words can express my grattiude for your tapes. sorry typos if any, am shaking with the raw power oif knowlege you have gifted this humble mortal.
Thank you so much
I put my AMC shares into a covered call to recoup some losses, I got in at the top following the hype lol.
I already collected $368 premium and now I kinda hope they don't exercise the option so i can keep writing em so i can get back all my losses with just premiums 😂
But I messed up and chose Sept as the expiry and the strike is $11 so I wasn't sure what I was doing but making that mistake opened up my eyes to the whole option strategy.
Thanks for this video. I now realize I should have been doing this years ago as another source of income.
Amazing! First finance related video I see where the comment section is not full of SPAM bots and their shills. Thanks for keeping your page clean!
A ton of work. But I owe it to you. Only positivity and encouragement here
This was extremely helpful it answered a few questions I still had to the process and I intend to rewatch it at least 1 or 2 times. Off the jump I still have one question tho, you said you have 7k to work with and pulling in about 2500 in premiums. How ? If your sticking 2k into one contract worth of stock for several weeks to 45 days and the premium is only 60 bucks....... seems like a lotta time invested for comparatively small gain ? And even if you did 4 of those over a month it's still not even close to 2500 in premiums ? ......
Maybe I missed something in there.
Thanks
I'll be doing my first option trade ever after a few more of your video's. Fingers crossed
Would really love to see this question get answered.
Yeah I don't get it... in his example he would have to have 100 x dropbox shares, and let's assume at the current price of $23, so $2,300 tied up in shares... and if the call expires in 30 days out the money, you make $68, so a ~3% return. Nothing close to pulling in 2,500 in premiums a month?
Plus you risk those shares finishing in the money and having to sell, not to mention time / effort, is it really worth it for $68...
Best covered call video I’ve found. Not just because of the info covered, but also because of your speaking tempo and visuals. Great job sir.
Wow, thank you!
Love this super thorough explanation of the whys and how's etc of covered calls! So helpful!
Glad it helped.. this is what you can expect from the course!
I started the course and will be continuing the next night I have some time I can devote to it. I like what I see so far!
EXCELLENT presentation. Thank you for sharing your knowledge and experience
Thank you
Excellent video, simple and easy to follow. I was beating myself on collecting small premiums at times but after watching the video feel better so much. I would also like to add that you could roll over before expiration in case you didn't want shares to be taken away. Solid content. Thanks
Correct. I mentioned in the video that you could always buy to close your options
This is the best video that explained covered calls to me. Before this video I did my first covered call on 1 contract for TSLA that I've held for 8 years. It was a week long nail biting affair watching the price shoot up to almost my strike price. Luckily, I came out still holding my shares and collecting a $1525 premium. Your video will help me do better next time on a much more way out of the money call. Thank you.
Glad to hear. Thank you!
Good stuff as always. Definitely enjoy the onscreen notes.
Thanks Jason. I wish I had been doing this sooner for tutorials.. haha.. do it in school while im teaching but it never crossed my mind to do while I as teaching this stuff
@@accordingtovin605 I wonder why your name is not highlighted anymore? Are you really Brad Finn? What’s whatsapp? Is that a phone number? How much does this cost? Do you provide refunds?
A few things relating to cost-basis I've been wondering about
1. If you sell a covered call OTM (and above your CB) and it gets assigned, you make a profit on those stocks for sure, but if you don't get assigned, and the price of the stock goes down, you'll likely have unrealised losses that the premium won't cover.
2. On the other hand, if you sell a covered call ITM, sure it's more likely to get assigned, but it's less likely to become OTM and cause you unrealised losses as long as it stays ITM. And if you get assigned you're still going to make money, because of the premium, even if the price of the stock falls below your initial buying price.
3. Then again, if you're certain that the stock price will go up in the long term, I think ATM covered calls might be the best in that case, because they have the most EV, so if the price goes down, you won't get assigned, but because you're sure the price will go back up, it's not a problem. Maybe you'll just have to sell a covered call a little OTM and collect less premium, to avoid realising the losses.
4. A little more risky variation of selling a covered call, if you're long term bullish, but short term bearish, might be that you'd sell a covered call a little ITM and hope the stock price falls temporarily below strike price, so you get to keep the intrinsic value of the premium, maybe even going as far as buying-to-close, while it's still OTM.
Then again, I'm still just learning about this stuff, so maybe none of this actually makes any practical sense. Would love some feedback.
You’re right in principal, but most people suggest using these strategies with stock you have no problem with holding because of any long term interest. So the market value may lower in that specific time period but you still have collected premiums and shares that can acquire value by themselves in the future, maximizing total returns
@@YanoskyPR In my experience, with CC if the stock price falls significantly, the premiums will be so low that there's no point in doing another covered call before the stock price recovers.
I'm super new to this but if I'm long on a stock, assuming flat/bearish over the short term.
Selling atm/itm calls and closing them early when they fall below the strike price seems abit dirty but risky too.
Have you played around with this idea?
@@AABradyKK Yeah. The risk is in, if you're not that confident about the stock. If you're really bullish in the long term, but the stock falls and stays down for a long while, you might get tempted to sell anyways.
Also, like I mentioned above, if the price does fall, until it recovers, it's not really good to be doing atm/itm calls, because you're going lose out on the rally. So doing otm calls that might be pretty far after the price has fallen is really the only way to keep selling cc in that scenario.
Selling itm calls, when short term bearish basically protects you from the downside without having to sell the stock.
In practise though, the past year has been pretty bearish and this strategy doesn't really help when stuff keeps going down month after month (meaning, it only really helped initially). I'm just holding on to what I have until a recovery, before I start selling options again.
Then again, reliable dividend stocks are starting to look pretty good in terms of consistent income, so maybe I'll just become a dividend investor instead. Wouldn't have to keep watching the charts so much.
Great video! I was looking for a video like this. Thanks.
Glad it was helpful!
Good video! I love your take at 16:00, doesn't matter the premium, even if it's a few dollars profit, stick to your plan!
Thank you
Amazing! I wish this video was out when I first started learning about options!
Thank you. Please share it with someone who is!
Good video overall. I know it's the technical term for selling an option but I don't like when they sell "writing the option". For the beginner that can be intimidating. What this really means is you get to pick the terms. The expiration date and the strike price.
Just because it’s intimidating and scary doesn’t mean it shouldn’t be taught for what it is. Selling and Options and Writing And Option are synonymous! People need to know the vocabulary of options even if it triggers their emotions right?
@@BradFinn I agree with you there. You might add in your video to not let the term "writing" intimidate you. They might get intimidated and right away think no I can't do that.
*stares nervously at my 100 shares of petco that I got just to try out covered calls*
why you nervous?
Lmaooooo this is guna be me when I finally pull the trigger on this
You should have sold a PUT at the strike price you wanted to get assigned at and than sell your covered CALL.
@@404HumanNotFound that’s what I’m doing now but fidelity won’t let me get cash covered puts till august 16th
@@timallen2941 Not sure why they would do that?
So on your hypothecated trade. Cost basis was 20. Strike at 23. Price tanks to 5 for whatever reason. Obviously you keep the premium, don’t get assigned. And you’re good on that contract. But now rolling over to the next one, are you still setting a new strike price above the original 20 cost basis, even though that’s pretty far OTM? What’s the likelihood that gets bought? Or are you just sitting on those shares until price recovers?
🤯BRO THANK YOU! White board is great for options math.
Youre welcome. I hope to use it more!
I do this in a tax deffered IRA account. No tax until I withdraw!! Love it!
Can you quickly explain how many trade and what it looks like to make 2.5k from 7k portfolio. When a good share costs $50, that's 5000 contract that you need to hold for 45 days. Where does the 2.5k per month come from? Are you selling. And buying the same call multiple times per day?
This will clear up a lot for me and others. Thanks
That is the sum of all my options plays. Not just CC's. Most of my income comes from poor mans covered calls.. I am running the wheel on about 6 stocks..
@@BradFinn cool, so roughly how many open closed transactions is that?
75-100
@@BradFinn Can you tell me the stocks you are running? if not on here can you message me directly? thanks, love your channel.
@@BradFinn Can you show the breakdown. I think it's impossible to make 2.5K out of 7K portfolio by Wheel strategy, selling cove calls, or even PMCC in just 45 days. These strategies required more capital especially on a standard option account that required cash-secured put.
Been researching covered calls and this was the best vid that I found. Thank you
Awesome, thank you!
At 25:11 you mention "theta" but I think you meant to say "delta" instead. Just trying to be helpful... :-) Thanks for the video, great info.
Well, you can also roll over your call for later date. So, don't always have to wait to be assigned if the price is approaching your strike price.
Correct
What’s the last day that you can sell a put or call. Like on feb 19 what’s the last day I can sell a put for that day? A day before? Two?
The same day of, it would be a day trade though when you buy to close it
Best video I’ve seen on covered calls. Thank you so much. So clear and detailed
Wow, thank you!
Great explanation, thank you!
You’re very welcome
Very good explanation, covered calls with a simple plan. But did I hear you right??? Did you say you have a portfolio worth 7k and making 2k in premiums a month? I'm just getting started with 20k and getting more like 500 a month in premiums. I don't see how you can do it with a delta of less than .3 my premiums are much less.
@@BradFinn Did you say in your covered calls intro you have a portfolio of 7k and making 2k on premiums a month? I'm doing more like $500 a month on 20k when choosing contracts with a delta of .3. How are you doing 2k?
@@MjandJuwie Yes, I agree.
@@BradFinn why do they offer covered calls at a lower strike price than the current share price? Do some people buy cc that has a lower strike price?
Thanks for the easy-to-understand video. It's exactly what I needed to understand calls better.
Right on
Also did csp on dbx past 2 weeks. Gives good premium lately.
Yes it does
Very clear, excellent presentation done with love. I understood everything in the three outcomes when selling covered calls. Thank brother. I like and subscribe.
Glad it was helpful. Thank you for the kind words
I feel you should mention that if the stock declines in value past your premium you can take pretty hefty losses and you’ll just have to keep writing the calls to bring basis down to break even or sell the stock. This strategy works great in the current bull market, but what about a bear market?
Pal, in a cover call is the share price is below the strike your option expires worth and nothing happens except keeping the premium. As mentioned, this is a bearish strategy
@@BradFinn Hes saying this. Your cost basis is $10, you sell a .10 premium to bring your cost basis to $9.90. If the stock drops to $9 for example, you now have lost the premium and $90. Selling the covered call locks in your shares and makes it harder to close out if the stock tanks. It would take a lot of premiums to make up for it
@@thomasd5488 right so if it drops to $6 and u bought for 9 and strike is 10 u just keep premium and write another call right?? its only a loss if u sell the stock right??
@@thomasd5488 yea gotcha
@@thomasd5488 yea I ve rolled before
This was great. Definitely checking out more of your info.
Thank you
Okay. With around 7,000 and usually a .3 delta. How are you pulling 2,500 a month? Are the poor man covered calls making more for you than regular covered calls? I'm around 11,000 and gaining around 1,000 a month selling puts. Im wondering if I need to switch to selling calls.
Same question here 🤔
What tickers are you playing
@@friedpickles342 at the moment. NIO, WKHS, ICLN, PALANTIR whatever their ticker is. I did gamestop before it exploded. I use others but these have been great to me.
Best CC video I have come across! Thank you!
Wow, thank you!
hey brad, just found your videos and love them! Just one question for you.. you say one of the downside is if you have a lot of unrealized gains and if the call gets exercised, you'll have to pay the capital gain on that. Don't you eventually have to pay capital gain on it anyways when you finally decide to sell? They cant charge capital gain twice or anything can they? Thanks!
Probably the difference though of short term versus long term capital gains that’s where the difference would be I think
If you held it over 1 year then it’s long term cap gain. If you are married to that stock and want to hold it even longer because you think it will go even higher then you don’t want to sell CC against it and risk it being assigned (sold). You can buy back the shares but then have to wait another year for long term cap gain benefits.
P
Choose K above cost displayed by brokerage, not your net cost over time. If assigned below cost for current position, losses might not be deductible from gains for tax purposes.
Thanks for introducing me to the PMCC man just sold my first one yesterday
YES!! Good luck
Yeah the ghetto spread (PMCC) is the way to go!
how did it go?
@@greatcoalition collected about $100 in premium so far and the option never was up around $150 so would say its worth doing
@@nivelsookoo9779 how much money should I start with in my portfolio for a beginner
Very informative video ,
I’m a newbie to the sell covered call but I do understand all your points!
Things I learned
Price above the based price in your portfolio
Check the delta below .3 is good the good one
Cheers. Good luck
Correct. Best of luck.🙏
how stupid could i be to dislike a video like this by accident when i know i could come back to watch it again before i place my covered call because the theta and betha part is very important to undersdand..anyway sorry bout that i just gave u a big thumbs up and i'm joining the discord soon
Cheers!!
U should always buy shares on ex dividend date, discounted,price should go up within days anyway and u can choose a higher strike price
I honestly don't get the issue with paying cap gains tax. I mean why are people even in the market to begin with? The largest taxable event people face is their jobs. For some reason people are not quitting their jobs because they have to pay tax. Yet, with enough capital you can make a living trading/selling options and people are afraid to pay a tax
FACTS!!
So true!
Couldn't agree more! Monthly cash flow is king.
Not afraid, people feel like taxation is theft.
Because in theory you've already paid taxes just to get the money you have to invest so it's like getting taxed two or more times on the same money.... now of course the second taxing was on passive income which is by far much easier to obtain than working your ass off for but still....
BEST VIDEO ON SELLING COVERED CALLS!!!! Lol, I just sent an email to you on every question i had and you answered everything in this video..... EVERYTHING!!! Dang!!! Disregard my other comment on a different video, I’ve watched 10 or more of your videos in 2 days, I have no idea why or how I missed this one (I would have saved myself some time, lol 😂... you are educating ALOT of people 👍👍👍🙏🙏🙏🙏) Thanks again Brad!!! Go MICHIGAN 👍🇺🇸
Thank you so much for the kind words Michael. Cheers!
Really great video. I found it after watching your PMCC video and discovering I'm not approved for that strategy with TD Ameritrade. Really appreciate the emphasis on sticking to your criteria and not getting greedy while looking at the premium.
Never do PMCC on Robinhood. I had PMCC on BABA and once my option went out of money,they didn't let me sell call on it.
This is definitely the best video on covered calls on youtube! Can you explain what's the limit price $0.55-$0.81 towards the end of the video?
That is the price price of the option. It ranges and is called the bid ask spread.
Heres a video on it
ruclips.net/video/Uel-FMatUmU/видео.html
i'm curious how the option went. it's Feb 13, an update video on this would be pretty sweet.
It expires worthless. I kept my $68 bucks. And repeated it for another $75. I update ALL my investment transactions inside my discord. I very rarely do update videos.
@@BradFinn Hey Brad, I have a question. Why is it bad if you get assigned? You get your initial investment back and the capital gain and the premium? Am I getting something wrong? Thanks
@@krismmm1704 It's not bad but this of it as selling something and having the price drive higher, just not profiting as much as you could and more mental than actually bad
@@itsZmat Yes, but you're still guaranteed the premium and a lot of stocks have some pretty high premiums for only a week out with a strike price very close to the share price. I don't get it, it just seems too good to be true. You can just buy the stock, make $100-$200 in premium and sell it at the strike price a week later and repeat with the same stock or another stock.
@@krismmm1704 Yeah that's why he says to not be married to a stock so that even when it's assigned it's still not a bad thing. I should clarify that I agree with you, I was just trying to explain the possible "con" in this situation
GR8 video. most complete video I watched on covered call. Thanks!
Wow, thanks!
Thanks brad! Now I can sell Covered Calls on GameStop! Jk lol great vid bud
If your brokerage will let you.. haha.. thanks
💎👐🚀
Here's a cc question you probably haven't heard:
what do you think of the following covered call scenario:
Buy 100 shares of LUV at 45
write covered call on LUV at 40 expiration 1/22 premium of
10.00
Doesn't this almost give you $500 for the year? Is this better than a money market??
Sure. But then the buyer exercises on day 1 and you lose your shares and take a $500 capital gains lose netting you $500 for two year. Bad ROI IMO
Great video! Do you typically let these expire? Also, do you concern yourself with volatility, liquidity, and the bid/ask spread? Finally, in your experience, how much capital is needed to be earning $3K per month in covered call premiums?
A lot
I like the way Brad explains everything
Thank you
I sold 9 3.5 AMC calls and felt like $ROPEing hard when it ran to 20+ 🥲
ccol
This is so cool. I bought 100 shares of SUNL @ $3.00 today. I sold a july 15 $5 covered call for 15 cents. ($15). It looked so good that I did it 100 more times. I got $1500 in premiums and if I get assigned, that means I sell 10,000 shares for $50,000. my cost is ($30,000 - $1500 premium) + commission. It's not get rich quick but it makes money. Who knows, the best thing to happen is the price go up to $5 quicker than july. 52 week high is over $13 and nothing wrong with this company. They finance solar projects.
cool
awesome breakdown! just starting my CC journey!
Best of luck to you
@Brad Finn and/or anyone, at the 9 minute mark it is mentioned that selling CCs on long term holds is not recommended due to capital gains taxes. Ex: the premium on Tesla will not cover the taxes on selling the shares. So I guess my question is why would doing this be bad? If the strike is above the share buy price and premium is obtained, you get taxes on both but still should come out profitable, right?
Anything is possible
found this by accident, love the way Brad explained cc, subscribed right away! Thank you Brad !
Thank you so much for the kind words
Brad, it's not necessarily true that you lose money if you sell a strike below the current price (in the money). The higher premium makes up for it, so yes, you still get money (albeit less)
👍🏻
Sorry I didn't have you as my physics teacher. I had an old Christian brother who was a miserable teacher. 45 years ago. Thankfully I've found you for covered calls. You're good. Thank you.
We have a good time
Great video clearly identify the 3 scenarios.
Cheers
Just came across this video, I’ve been running the strategy for months already and am pulling consistent wins. Watch out for dividends
you got it. Best of luck
Thanks for this excellent video, I have learned tips like buy to close to exit the position and keep the shares. 👍
Excellent!
If anyone needs to know which stocks are going to go down, feel free to ask me which stocks I invested in thinking it was going to go up. 😅
Dude, solid video. I like your genuine intention to help people succeed. A lot of youtubers out here just trying to put useless click bait out.
Thanks for sharing
I have been grabbing 100 shares of low cost stocks to play this strategy.
But I am choosing companies that have potential growth. So I look at it like this; 1) If I'm only playing for the premiums I don't care if the stock price falls, I'll buy the dip and grab 100 shares and be able to write an additional call.
2) it will help me hold the shares longer and see the stock price rise and ultimately the premiums will be better as well, right?
Where do you find those low cost stocks?
Excellent video on covered calls. Love your easy-to-understand, straightforward explanations! Thank you for making great, quality content! :)
Cheers
The Wheel Strat has changed my life. Im hoping to retire in my 30's. thank you for the knowledge 🙏
No worries.
Excellent video. thanks so much for it. im new to option and this explanation was great.
Thanks for these videos, you always do a clear presentation.
My pleasure!
It can go into the money. Called away. Bad outcome. In IRA.. no tax problem. I say 18 days til expiration. I go about .2 to .25 on delta. when i get a fill (a bit below ask) i put in GTC at 25% on sell price. Shows lots of 75% gains. A bit extra work.
It really hit home when you said don't take any premium or a small premium as long as it matches the criteria of above the cost basis. 💯 true!!!! I truly appreciate it!
Cheers
Excellent video thank you! The best explanation so far. Maybe in the future include a buy to close so people know how to do it (even though you explained it perfectly). Also could you make a video on call credit spread or call debit spread and how to close each one of those positions?
Thank you. I have a video on credit spreads I did about a month back. Next time I close something Ill record it if im by my camera
@@BradFinn Thank you so much! You are helping people take control of their future and I am forever grateful!