Covered Call | Options Trading Strategies

A Covered Call is one of the most basic options trading strategies. It involves selling a call against stock that we own, to reduce cost basis and increase our chances of being profitable. Tune in to learn how we execute these trades at tastytrade! New to options trading? Mike breaks down trading strategies and concepts in a visual way for beginner to intermediate investors. Click the link below to learn more: http://ow.ly/XRKVh Follow: @doughTraderMike Use the hashtag #whiteboard to discover more options trading concepts! ======== tastytrade.com ======== Finally a financial network for traders, built by traders. Hosted by Tom Sosnoff and Tony Battista, tastytrade is a real financial network with 8 hours of live programming five days a week during market hours. From pop culture to advanced investment strategies, tastytrade has a broad spectrum of content for viewers of all kinds! Tune in and learn how to trade options successfully and make the most of your investments! Watch tastytrade LIVE daily Monday-Friday 7am-3:30pmCT: http://ow.ly/EbzUU Subscribe to our YouTube channel: https://www.youtube.com/user/tastytrade1?sub_confirmation=1 Follow tastytrade: Twitter: https://twitter.com/tastytrade Facebook: https://www.facebook.com/tastytrade LinkedIn: http://www.linkedin.com/company/tastytrade Instagram: http://instagram.com/tastytrade Pinterest: http://www.pinterest.com/tastytrade/

Comments

1. As I pain myself studying for my finance exam, the ever-familiar led zeppelin intro made this all the more bearable. thank you.
2. isn't this the same as call spread?
3. I'm confused dont covered calls make guarenteed money
4. This was a very good explanation! Thank you
5. How old are you?
6. I've been following dough on the option trading for a while. I did fairly good on the quizzes. I would like to find out more on how to tell if the implied volatility would make that stock a good stock for an option. Meaning how high or low the numbers has to be in order to make the trade work in your favor from the start.
7. Well explain very detail of a cover call comprehendible
8. Let me know if anything needs to be changed.
   
   Covered Call:
   # # # # # # # # # # # # # # # # # #
   PutShares = Shares * BuyPrice
   PutShares >= CostBasis <= Infinity
   
   
   
   OTM Covered Call:
   # # # # # # # # # # # # # # # # # #
   PutShares = BuyPrice * Shares
   CallShares = SellPrice * Shares
   CollectedPre = Premium * Shares
   CostBasis = Putshares - CollectedPre
   MaxProfit = CallShares + CollectedPre
9. Way too much theoretical numbers. Try calculating yourself using real options numbers and you will see the returns are way lower after commissions lol
10. I think I finally understand what a covered call is!
11. your great dude!!! i just subscribed
12. Can you do mini option covered call in small accounts?
13. Good delivery. I would just advise against using numbers that are all divisible by each other.
14. can I sell Covered call to fully cover my initial investment $10,000 using AT the Money Call?
15. learning the stock market language and trade practice and understand what it takes to trade
16. Wow, one of the best explanations of this strategy I have ever seen! I think I really get it this time :-)
17. NICE PRESENTATION.
18. Great vid, man.