CrazyRichAggie said:
Mr President Elect said:
CrazyRichAggie said:
Now that I figured out my issue it's probably too late to get those 3/19 $7.50 CC in place. Currently sitting at $1.36
Why? You are selling them? That is better than what most sold for this morning.
ok, guess I still don't fully grasp covered call. So you want a higher purchase price when you open to sell them because we are hedging for when the stock price drops, is that correct?
if you own 100 units of the stock you can SELL a Call contract on those 100 shares.
Selling A call contract is an obligation to sell your owned shares at the designated strike price. In exchange you collect a premium.
If the share price is below the strike price at the expiration of the call contract you keep the shares while also keeping the premium collected.