Make EASY Income with Covered Calls (This paid my rent!)

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Covered calls are an easy way to increase your monthly income. This month I made enough money selling covered calls to pay my rent! Follow along with this video to understand the covered call options strategy while I take you through a real example and explain the pros and cons of using this strategy.

⚠️ DISCLAIMER ⚠️

I am not a financial advisor. This video is for entertainment and educational purposes only. You (and only you) are responsible for the financial decisions that you make.

[TheFinancialMinutes]

If you could sell covered calls on any stock, what would it be? 🤔

[luxurylife]

I agree with the covered call “so called” loss if the strike price is is lower then the current share price at the time of expiration. But if you don’t mind selling the shares, then agreeing to sell them at your desired strike and be happy with it, then it’s still a gain in my eyes. You get the premium and a bit of a gain on the share price at the time of expiry, it’s still a win. Never let emotion get in your head. Decide on a strike price. Collect the premium. And if it’s called away, so be it. Be happy with the gains. “No regrets.”

[olfoogy]

man I make my comfortable living with majority covered calls....why don't you learn to roll if you want to keep your stock? The higher the stock price. the higher volatility, the more selling options pay....On stock that I love like nvda tsla meta for example, I write the option for a comfortable higher price to capture the time value and I do this weekly....The idea is; the bigger chunk of change you have, the more good stock you can own and the more options you can write. It is a game that takes time to learn but the risk is not hardly worth mentioning rreally...good luck to all you new investors...It takes TIME to learn this stuff so think long term. Peace

[coachanthonyburgos]

But you’ll make it up in capital appreciation. That’s why you have to make sure you sell above/below your costs basis

[teddyblack]

Been watching your old videos and to see you with a mustache today just blew my mind lol

[pjsmkck]

I have been doing a lot of research on covered calls but I have a question. Why would you not just buy 100 shares of a stock for example COIN which is $78 a share for $7, 800. Then go to a super far out expiration, for example 622 days out and sell a call with a strike of $80 which is just slightly out of the money. Then you would get the premium which in this case is $2870 and you would be forced to sell your shares at $80 which could happen in less than a week then you would have your initial investment plus $200 in the stock difference and your premium of $2870. I don't understand the downside.

[cristianmendoza]

Bro you are the best 👌 👍 I couldn't understand about options until I find your videos

[ryanh]

You didn’t reduce your cost basis, you lowered your break even point! Cost basis is tax related and very specific to gains and losses. Careful with that wording!

[inzanityhustle]

Useful video, but quick question. How does rolling your covered calls work and why would you do that? Also even if it goes past your set strike, would you still be profiting? Lastly, why doesn't everyone just set their strikes high..wouldn't they most likely be receiving profit anyway?

[JeffreyTablet]

but if you sell your covered calls at lets say say 50 while its at 60 did you lose 10? i dont think so, because what if way back you alredy bought the 100 shares at lets say under 50 dollars?? is it not about prespective? the only thing is you, missed out on more profit but did not actually lose any money right? but u actually made money + the premium money, or ami i not understanding covered calls?

[nyenergytrader]

This is a good strategy, I use this along with selling puts, along with owning the stock as well, but AMD is not a great stock, that is for $$10, 000 in margin required I would look to make at least $1000., 10% of the money you have to put up.. why not apply the strategy to stocks that have options with very high implied volatility, that is the premiums are super fat, and in some cases I’m selling in the money puts when the RSI is oversold, and the parabolic SAR is crossing over. I’d rather make 10% on my money or more on these weekly expirations.

[sumanth]

Can you please add a similar video of selling put and make a profit? TIA

[methioswar]

I like the idea of putting coverd calls on some of the stocks im long in. But font expert much price action with. I have watched a ton of vids. One thing i cant get my head around is: when i own 100 shares of X. And the stock price is ar 10dollar. I want to sell a call option at say 15dollar. Who buys that? What is his game plan? Why pay money for the opertunity to buy something at a higher price when you can buy it now for less?

[InvestEU]

Thanks for the info, i have one question. How can you start selling coverend calls? i am not ready to own 10.000 dollar of stocks to do this. DO you have any tips about cheaper stocks? thanks!

[jasonlee]

why is the breakeven price higher than the strike price? Isn't it the share price - the premium of the call?

[glendarae]

Should you buy to close an option when you're in the green on just let it expire?

[BayAreaLive]

Hey, I love how we don’t talk about what happens when the price ends on expiration date well below current price & strike price.

ie: AMD stock. Current price $98. I choose a strike price of $110. But on expiration the price of AMD falls to $88.

Sure, I keep the premium of “$123” but also take the loss of $98-$88 per share (100).

So yes, while you keep the premium. You lose more with $10 less per share.

Or am I wrong??

@everything options

[REALPLSHOWN]

To get break even you subtract the premium from the strike price you said you add it. 6:40. Have you back tested the covered call strategy?

[ezekielm]

Awesome video very clear and consise this helped allot.

[amanahlwat]

Did you get IV and delta mixed up in this video? Could be wrong.