SUBSCRIBE! Step by step video of how to sell a covered call with etrade. This is a strategy that is used to generate income in a portfolio.
Comments
Is this the same as writing a covered call?
You meant to say "that's how easy you sell a call", you said put. Puts wouldn't be a passive income strategy in your example.
sell open means you are shorting the stock, while sell close is a covered call. correct me if im wrong.
I think the last part of the video is in error when it touches on selling a PUT. If you have 100 shares, you can't SELL a put against it. Selling a put obligates you to BUY 100 shares at the strike price. If you sell that put and the stock goes down to the strike you will be forced to buy 100 (more) shares and be stuck with 200. A 'covered PUT' is a much more complex and dangerous trade.
Do your covered calls ever not get bought? If I do a buy-write how long does it usually take to see the money from the premium in my brokerage account?
when my shares get "assigned" do they automatically get sold? or do I have to log-in to etrade and click "sell to close"?
Straight to the point great video, my question is what is the fee or average fee from Etrade from doing these covered calls on the stocks that you already own, and about how much is the premium, does it depend on the value of the stock or is just a general premium?
Short, sweet and with video. Thanks! Quick question. What happens once someone buys the call you covered on and then closes it? Does it go to the new person until expiration or does the contract dissolve and you start over?
This was helpful. I'm a little confused on the Limit Price if you choose that price type. What does that number mean?