Easily my favorite investing channel! I trust your judgement and methods so much. I would love to see a video on if you were starting over with say $10k-$20k, how you would go about scaling in the short term and investing for the long term.
Hi Steve, love the illustrations perfect explanation. I totally get the milk situation because I do buy organic milk and I’m like wow It’s not gonna expire until a month from now so that was fantastic keep them coming ❤️❤️❤️🙏🙏🙏🇺🇸 blessings
Just to clarify: call options don’t always go down in value as time passes. The price of the underlying stock/ETF, as well as the level of expected volatility, all come into the mix. And theta changes over time as these variables change. Bottom line: call options don’t just “spoil” with time, they can actually increase in value depending on how the underlying stock/ETF performs. This would be bad news if you’re short the call (i.e., if you sold a covered call).
Correct! Extrinsic value will always shrink due to theta decay. The purpose of this video was to isolate one variable, time/theta decay, while keeping everything else equal/static.
Hey Steve. Love doing covered calls after watching your videos and I have now started to roll them as well. It's good plan for more conservative investors who like to lock in a profit in exchange for limited upside. My rule is to only do it with stocks that are solid so that the stock price will eventually recover even if the market tanks for a while.
Best explanation video I have seen. Produce another video. IF the strike price (+ a fraction to cover costs) isn't met, then the seller keeps the premium, stock, & perhaps dividend too depending on timing of expiration date.
Steve I would like for you to do a video on investing for 10 years to get a goal of say 300 thousand and 500 thousand or say 150 thousand instead of a million
You did a really good job explaining this bro. Thanks so much 😊. For this you get like and message.
YOU are a VERY good teacher. I teach commercial real estate.
Thank you for the video. You make it extremely easy to understand options.
Glad it was helpful!
Easily my favorite investing channel! I trust your judgement and methods so much. I would love to see a video on if you were starting over with say $10k-$20k, how you would go about scaling in the short term and investing for the long term.
Aw thanks Michael! I can make a video on this!
Hi Steve, love the illustrations perfect explanation. I totally get the milk situation because I do buy organic milk and I’m like wow It’s not gonna expire until a month from now so that was fantastic keep them coming ❤️❤️❤️🙏🙏🙏🇺🇸 blessings
Just to clarify: call options don’t always go down in value as time passes. The price of the underlying stock/ETF, as well as the level of expected volatility, all come into the mix. And theta changes over time as these variables change. Bottom line: call options don’t just “spoil” with time, they can actually increase in value depending on how the underlying stock/ETF performs. This would be bad news if you’re short the call (i.e., if you sold a covered call).
Correct! Extrinsic value will always shrink due to theta decay. The purpose of this video was to isolate one variable, time/theta decay, while keeping everything else equal/static.
You did a great job 👏🏼👍🏼. Thanks Steve ❤
Thanks Liz!
Great video.
What indicators would you recommend I use to do weekly and monthly covered calls?
Fantastic !
Hey Steve. Love doing covered calls after watching your videos and I have now started to roll them as well. It's good plan for more conservative investors who like to lock in a profit in exchange for limited upside. My rule is to only do it with stocks that are solid so that the stock price will eventually recover even if the market tanks for a while.
Woohoo! Same strategy as mine too! I'm a long-term investor and short-term covered call seller. :)
@@CalltoLeap
So when I sell a covered call, when do I collect my premium? Once the expiry date comes or do I get the premium as soon as I make the trade?
All the Greeks please 🙏
Hi Steve, yes please do a video about expectation dates please
I made one! Woohoo!
Does that mean that if the stock price shoot up the best time to roll a covered call up is one day before expiration?
Will the beginners investing master class be recorded? I get off right at 5 and it’s at 5:30 and I want to listen to it
I can record it for you!
@@CalltoLeap that is so kind of you. Thank you so much.
Best explanation video I have seen. Produce another video. IF the strike price (+ a fraction to cover costs) isn't met, then the seller keeps the premium, stock, & perhaps dividend too depending on timing of expiration date.
Thanks Dancer!
If higher theta decay is desirable when selling covered calls, why do you prefer 30-45 DTE over 0-30 DTE?
he doesn't want decay. it's not desirable.
thank you!
Thank you for putting this out there without making us pay for a course it makes it feel much more trustworthy 😂🙂
Of course!!
Steve I would like for you to do a video on investing for 10 years to get a goal of say 300 thousand and 500 thousand or say 150 thousand instead of a million
Sure! I can do this Donnavan!
Can you explain poor mans cover calls and when to exercise the option or sell to close? Just a suggestion
What happens if you don't buy it back and let it expire?
If the contract is OTM, it just expires worthless
最高素晴らしいかった👍👍👍