What Is A Covered Call & How Do I Trade It?

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[livedeliciously]

I remember watching this like 4 months ago and literally nothing made sense. I'm glad I finally understand this thing through and through.

[alexescobar]

If this video was supposed to be for beginners, it drastically failed

[lillianbradley]

Listening to this the first time sounds like a foreign language

[ICT_Made]

I recently upgraded my brokerage account for margin, spread, covered calls/puts, and secured cash puts, thank you for helping me understand how secured calls work, im sure secured puts are the opposite.

[tylerchelston]

As I pain myself studying for my finance exam, the ever-familiar led zeppelin intro made this all the more bearable. thank you.

[tradenow]

I’ve been a few months trying to understand how the coverage stocks/options work, thanks to you finally I’m getting it

[wethumbs]

You only talked about OTM covered calls, but there is also the ITM covered calls strategy.

[sleepykoala]

Tastytrade should do another video....this was a little all over the place

[samueljoseph]

You are the best. Covered calls are my things and you explained them very well.

[AHECTORMOJICAUSMC]

learning the stock market language and trade practice and understand what it takes to trade

[wreckemtech]

I studied finance at a well known university and I almost forgot I learned about this in one of my classes 😅

[DanielRizza]

I think I finally understand what a covered call is!

[rocastyle]

Well explain very detail of a cover call comprehendible

[reuvengilmore]

Thanks, but you should also talk about the downside, like what happens when the stock price drops below your cost basis.

[MRshank]

What happens if stock goes up and strike price is hit? You have to sell the shares?

[vantasticman]

I LOVE your videos, but you neglect to mention the total potential loss (assuming the drop) is less with the option and buying the stock long, and its because if your intent is to go long through selling a put you also have an "opportunity gain" buying the stock at a discount (of course you couldn't roll the option over AND excersize it), also it prob better to use a short put to enter a position long than a limit order as you lower your BE.

[adamgiovanelli]

I don’t understand why it’s “the best possible scenario” if the stock price blows past the short strike price. Is this only if you planned on selling the stock anyway? Is it a bad idea to do this with stock you plan on holding for a long time bc it’s gonna cost more to buy it back if that price does go up and you get exercised

[zechmerquise]

The explanation was really easy to understand with the graphics!! Thanks for putting them in. You got a sub from me.

[GIJew]

Smart money writes options. Suckers buy options. Covered calls are essentially free money unless the value of your stocks go down so far that it offsets the premium you received when you wrote the call. At that point, you could just buy your call back insanely cheap, sell all your shares, and still may end up breaking even or at the very least significantly reduce the loss from your stocks losing value. That's called hedging, folks, and more people need to start learning how to do it. Unless you're insanely bullish on your stocks, you should consider writing calls on them to protect yourself from loss and generate extra income. I've been writing calls on my 1, 000 Amazon shares since they were trading at $350. On top of whatever I earn from the share price increasing, I pull in an extra $40, 000-100, 000/mo just by writing calls on them. Only been hit with an exercise on one single contract in the several years of doing this as well, and it was no big deal - I just bought 100 shares back again.

[mobiusdesigns]

Why sell a naked call? Wouldn’t buying a call with money from selling a put give most upside to downside risk with a bullish outlook?