Learn to trade options: Creating a covered call strategy

A covered call is an option strategy in which a trader holds a position on a stock and subsequently sells a call option on the same stock in order to produce supplementary earnings from the asset. When you sell a call option, you are obligated to sell the stock you already own at the strike price if the buyer exercises the call option. The covered call strategy is used by all types of traders from novice to advanced. In this video, we'll explain how to create a covered call strategy in Questrade IQ, and how to calculate the maximum profit and loss. Sign up for a free practice account http://www.questrade.com/platforms/free_trial.aspx Open an account http://www.questrade.com/account/online.aspx Questrade Advantage Sign-up for the Questrade Advantage to trade single- and multi-leg options for only $6.95 + 75 cents per contract. Learn more about covered calls http://help.questrade.com/how-to/iq-web/stock-and-option-quotes/options/option-strategies/covered-call

Comments

1. How do you sell a call option when you already own the underlying stock?
2. what about commissions
3. Great video! Any videos on iron butterfly?