Covered Call Option Strategy Explained For Beginners

Covered Call Option Strategy Explained for Beginners

This is how to use call options to create passive income in the stock market by utilizing covered calls. This is your call options explained video.

We hope you enjoy this video about call options and covered calls.

Please check out our other videos about investing in stocks for beginners and how to invest in stocks. We're making these videos so that you hopefully avoid investing mistakes that beginners are prone to making. We will also be doing stock market news talking about stocks, the stock market, gold, oil, bitcoin, and the economy.

ClearValue Tax and affiliates and related parties do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

Legal Disclosure: I’m not a financial advisor. The information contained in this video is for entertainment purposes only. Before investing, please consult a licensed professional. Any stock purchases I show on video should not be considered “investment recommendations”. I shall not be held liable for any losses you may incur for investing and trading in the stock market in attempt to mirror what I do. Unless investments are FDIC insured, they may decline in value and/or disappear entirely. Please be careful!

[waltpro]

"I'm gonna be speaking to you as is you know nothing about call options or covered calls." That's perfect, because that's literally me. The only thing I know about them is from preliminarily reading the comments is that you can get severely burned by them if you aren't careful.

[shirleysaidsew]

Saw the title and automatically screamed "YOU'RE THE MAN!" I see people doing this and have no idea what they are talking about but I will like to learn.

[dawgg]

Like Warren Buffet said, dividends are only good if the business you’re investing into can’t make good use of that capital. So if you’re trying to invest into businesses with actual growth, looking at dividends is a waste of time. Why are you investing into a company if they’re returning capital to you because they think you can make better use if it than they can. It’s not much different from bond investing. The way I see it if you have a $1 million at some point, that’d be enough to create a portfolio that would pay you between 50k-70k in dividend income...

[MoneyJourneyWithSonny]

On another note regards to Stock Options, you can only trade options in group of 100 shares. Each option is controlling 100 shares of stock, in regards to the video above if a stock cost $100 a share. You would have to have 100 shares of the stock for 1 option trade. So, you would have to have 10k dollars worth of stock and if you received $2 for each share it'll be $200 for 1 option. Which is 2% return for a 10k investment for one month. If you done this every month at the end of 12 months you'll have $2, 400 or 24% return if the stock never gets assigned. You would of doubled the S&P for a one year period. Remember investing in the stock market you can make or lose money, always paper trade before using real money. Another Great Video!

[rtacher]

This is what I do with my stocks. I invest in the actual stock and then sell covered calls on them every week to two weeks. It is great passive income. I use the proceeds to buy more shares and do more coveted calls. I have doubled my money doing this:). It is very safe and a good way to make money!! Very well explained!

[StockInvestmentAnalysis]

Really well explained. You do a great job of simplifying this, breaking it down, and explaining the pros and cons from both sides. To all of the new investors, keep in mind that for many people this is going to turn into nothing more than betting. Don't make bets with your money. Focus on investing instead of gambling!

[unequallytwisted]

Now this is what I'm talking about!

[stjepanhauser]

I came here to learn how to trade after listening to a guy on radio talk about the importance of investing and how he made $460, 000 in 4 months from $160k. Somehow this video has helped shed light on some things, but I'm confused about the current market volatility, I'm a newbie and I'm open to ideas.

[davidliang]

Remember. The ones that got rich during the gold rush were the ones selling the shovels. Great stuff.

[BigSQL]

Out of all the “covered calls 101” videos…this is the best one.

[msmforever]

THANK YOU SO MUCH!!! The way you break down concepts that use to seem too complicated grasp is AMAZING!!! So glad I found you!!

[RandyLy]

If anyone is interested, the method that he's performing is known as "the wheel". It's basically "Selling a Put" with cash that you have and collecting the premium. And if you get assigned, you now own the underlying stock. Then what you do with those stocks is "Sell the covered Call". You collect the premium using the method Brian explained and hopefully, you set the call option at a strike price HIGHER than for how much you bought it for. It's basically a win-win situation assuming the stock continues to go up and if you had sold it for higher than when you bought it for.
Thank you for the explanation, Brian! I just discovered this recently and am glad you made a video about it just to confirm what I learned.

[ThinkMoneyBenny]

Options make my heart race! 😲
you can either have a very bad day or have a very good day when playing options 🤑

[SteveRam]

Me This week: We’re getting fancy! Watch out Webull, here I come!
Me next week: lost all my money; please provide a stimulus check update, kinda need it, lol

[jacobbuettner]

You should do a video expanding on this and tying it into the wheel strategy. Specifically, I wanna know WHEN we should be selling covered calls and cash secured puts if we're using the wheel. The strategy is great, timing option assignments is tough right now Thanks, love the channel!

[irbliie]

Thank you for breaking this information into very understandable language. I have conversed with several retirees who use covered call ETFs to supplement their social security benefits and also have an annuity for life time payments. When they discuss covered calls I get very confused. Great educational video for us uneducated people.

[TwiLightVids]

Speaking to me as if I no nothing about call options, which I didnt! Thanks!

[rod]

Brian showing the masses the door to the most dangerous casino in the world!
What could go wrong? 🙈

[michelled]

Please remember me. When I get my inheritance, your going to be my first call and I'm going to listen with both ears. Your a good human being and I'm confident your the guy for me.

[jcole]

Ive been studying options for awhile. Never really "hoped over that understanding silver line".
You simplified it for me and made everything "click".
THANK YOU BRIAN!