Do you need special options level to run poor man's covered call? I'm new to options trading and at the most basic level. Will they allow me to run the strategy?
So there isn’t specific guides, for me personally they took over a year to allow me for some reason, while others I have helped with options level 3 have gotten it in a matter of months after starting with smaller accounts than my own. So as long as you have some profitable trades and you have a decent account you will probably get accepted.
But you do want to be careful not to move down to quickly, because you always want to be above break even in value of profits from covered calls and the bought calls. Say you have a $35 dollar contact on the bottom that cost $1500 to open, your cost now if you get assigned for those shares is $5000 or $50 per share, therefore you want to stay around the $50 mark for covered calls in the case you get assigned. Once you’ve earned enough premium then you can move downwards in contract price for covered calls since you’re break even is moving down with the extra profits you’ve collected.
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Great content. I do puts on TNA and YINN
Do you need special options level to run poor man's covered call? I'm new to options trading and at the most basic level. Will they allow me to run the strategy?
You need options level 3, for robinhood, which is the ability to trade spreads.
@@denniskunert how long did it take you to get that privilege after starting with options? Can one apply right away?
So there isn’t specific guides, for me personally they took over a year to allow me for some reason, while others I have helped with options level 3 have gotten it in a matter of months after starting with smaller accounts than my own. So as long as you have some profitable trades and you have a decent account you will probably get accepted.
@@denniskunert I'm with Fidelity and Charles Schwab. Will ask Monday. My accounts are substantial. Thanks
I run option on fidelity as well, I do know that you need a minimum of 10,000 for options level 3
what if TNA drops to say $20? Are you still selling calls at .80delta? Please make a video about such situations
Well yes because delta moves with the value of the stock price, so if the stock price is up or down the delta moves up or down.
But you do want to be careful not to move down to quickly, because you always want to be above break even in value of profits from covered calls and the bought calls. Say you have a $35 dollar contact on the bottom that cost $1500 to open, your cost now if you get assigned for those shares is $5000 or $50 per share, therefore you want to stay around the $50 mark for covered calls in the case you get assigned. Once you’ve earned enough premium then you can move downwards in contract price for covered calls since you’re break even is moving down with the extra profits you’ve collected.
Bro I’m tired of people who just make content with unusable information.
Buy $TNA call, sell $TNA call, make money, boom pow. Not financial advice