Making Monthly Income from Selling Covered Calls (Options)

This is how you can make consistent money every single month by selling option premium. You’ll see what is the best strategy when it comes to selling covered …

28 thoughts on “Making Monthly Income from Selling Covered Calls (Options)”

  1. One topic I have not seen talked about is when is it likely that the call option buyer will call your shares? So if the strike price is 31 and the stock price hits 31 at that point the call option buyer can just buy on the open market at 31 for the same price as call your shares away from you. Also say strike is 31 and price hits 31.02 maybe the buyer wont want to bother going through the process for 2 bucks profit. Also wondering if contract is for 30 days and then on day say 3 of the contract the share price hits 35 will the buyer go ahead right away and call the shares? If so thats a good thing because you have gotten a nice premium on the 30 day contract but yet you are done in 3 days and can do whatever you want with the 100 shares at that point?

  2. I usually aim to Make at least 20% if my hundred shares would be sold when call expires if it does above strike price , what about you Sasha?

  3. If the covered call was exercised …..couldn't you just sell cash covered puts instead of rebuying the stock?

  4. Hello Shasa my broker states that when selling a covered call that I could be exercised before the expiration date and or anytime does that make sense also found this on the Chicago Board options exchange doesn’t make sense to even sell a covered call but I want to.

  5. If you get called and have to give up your shares you’re now in a cash position. Wouldn’t you just sell cash secured puts against the same security (assuming you didn’t want to be called in the first place) ?

    This way you get more premium and if you get PUT you get the shares back at a more favorable price then when you got CALLED.

    Rinse and Repeat. Should also discuss the Greeks too. If your not using them and you make money from options it’s most likely dumb luck. Not saying you don’t use them but for anyone reading this that is a beginner.

    Disclaimer: I am not a financial advisor nor is anything within this comment meant to constitute anything as such. For informational and educational purposes only.

  6. If the stock goes down, u can keep ur premium and u don’t have to sell the Stock right ?

  7. How are you live zooming around your screen?… I'm a mac user and I haven't found anything that simple on windows yet.

  8. question – what if you dont own 100 shares and only own 1 contract and sell covered call on that call option?

    what would happen? and whats the risk? the same or riskier or illegal?

  9. A friend tried explaining to me how this worked , he’s made a few thousand doing it but I was so confused , this video helped me understand

  10. Great explanation. Still learning this strategy but this where the word RISKY gets thrown around.
    1. If you get a higher premium sometimes you end up losing your shares at higher price.
    2. If you get a lower premium sometimes you get to keep your shares at lower price.
    3. What do you do with your higher premium? Did it make you a higher return somewhere else?
    4. By getting a lower premium did your underlying stock go up enough to justify not taking the higher premium?
    5. So are options worth the risk if the underlying stock moves up or down too fast?
    6. Why are there so many gurus teaching options if they're so profitable? LOL

  11. Nicely done my friend. One of the better explanations in the tube. Love this income option (pun intended).

  12. So in what situation the premium will be lost? It looks like you win the premium in anyway.

  13. when do you sell a covered call , when stock is bouncing back up or at peak , if you don’t want to keep it until the expiration date ?

  14. As usual, illustration was on point. One question I have is; can you sell ITM calls instead of selling OTM or ATM calls. What’s pros and cons? Thanks in advance.

  15. what happen if the stock price drop below your buy price? If still using this method then the stock being sold out, than we will face a lose situation right?

  16. I've been planning on doing this… But what happens when stock price drops significantly well below your purchase price? Then you can't choose that high a strike because it would be far OTM and premium will be very low, nor you can choose a lower strike ATM for higher premium because you risk losing the stock at a loss then….

  17. Thank you for the video. May I ask what program you use to record your screen videos?

  18. At a lower price ( stock pulls back)
    .. Are you obligated to sell? I'm asking because you mention a 'loss'

  19. when you say "lose the stock" do you mean it has to be sold but you keep what it was sold for?

  20. Awesone video explaining this strategy. This is now my favorite type of trading. So safe and less stressful. Thank you so much Sasha

Comments are closed.