Alan Ellman of TheBlueCollarInvestor.com explains how to generate monthly income from a covered call strategy. Presented by TraderInterviews.com.
Comments
very rich information thank you Sir ...very impressive
thanks a lot, now i understands y someone said options are hard.
video is still relevant , good job explaining everything thoroughly.
Anyone that uses IBD - is clueless and needs to stay out of the markets for their own good.
If this is the first time you learned about this sort of trading you SHOULD NOT EVEN TRY IT. You are not ready to even attempt to go naked on calls.
Very good indeed, will apply for the membership soon!
This is gold
I don't get this shit.
Thank you very much for this video. It took me about 5 hours to get through this one hour video, over 3 days.. Alan did a wonderful job explaining everything. I watched and re-watched until I understood. Thank you, Thank you.
This is as good a presentation as any. However the would-be investor needs to understand that covered calls violate a basic tenet of investing: cut your losses and let your profits ride. Covered calls do just the opposite. You collect your premiums and any difference between the purchase and strike price. Your gain is limited to this amount. You can lose a lot more if the underlying share price tanks. Covered calls also restrict your ability to get out of the market as you have to unload the call as well as the underlying shares if the market dives.
how about the third scenario where the stock price drops to $30? do you gonna have to lose all your money?
You're also selling it at a premium option of $8/share. So you loose $6 on sales of each stock but got $8 premium on each stock.
I've been wanting to get into covered calls and watched countless videos. Sadly, yours was the last and not the first. Great job. Headed for your web site for more education and shopping..
Very thorough. Thank you for sharing.
Fantastic video.I just want to clarify something regarding related to intrinsic and Time value .In one of the slide you told Buy a stock option @56 and sell it @50,here intrinsic value is 6 whereas time value is 2.How do you calculate time value.
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