Hellow guys, Welcome to my website, and you are watching How to Sell Covered Calls on Robinhood - Trading Options for Beginners. and this vIdeo is uploaded by Jake Broe at 2021-09-17T11:45:01-07:00. We are pramote this video only for entertainment and educational perpose only. So, I hop you like our website.
| Name | How to Sell Covered Calls on Robinhood - Trading Options for Beginners |
| Video Uploader | Video From Jake Broe |
| Upload Date | This Video Uploaded At 17-09-2021 18:45:01 |
| Video Discription | Check out my entire playlist on Trading Options here: https://www.youtube.com/playlist?list=PLscTZuOqKWIxSZzy4ObKWDznEsCot_1HU Join this channel to get access to perks: 🌟 🎓 👑 https://www.youtube.com/channel/UCYHosdETLPp6dpJEsgIUTmw/join 💯 LET’S CONNECT 💯 📷 Instagram @JakeBroe 👉 https://www.instagram.com/jakebroe/ 🐦 Twitter @Broe_Jake 👉 https://twitter.com/broe_jake Want to sign up for Robinhood? Feel free to use my referral link: https://join.robinhood.com/jacobb4801 👇 👇 Watch My Other Videos Here 👇 👇 ★ How to Sell Covered Calls - Options Trading Explained https://youtu.be/FS-pzG_Oyto ★ The Greeks Explained - How to Trade Options https://youtu.be/3C-NQadRRfo ★ The Wheel Strategy - Options Trading Explained https://youtu.be/vro-6v1n50o ★ LEAPS Options Explained - How to DOUBLE Your Stock Returns https://youtu.be/3rdqL4hQCyM ★ Poor Man's Covered Call Explained - Full Example https://youtu.be/aUFHEldTAdM 📷 📷 My YouTube Equipment 📷 📷 ► My Camera 👉 https://amzn.to/2UZpFwA ► My Wide-Angle Lens 👉 https://amzn.to/2Qwf3Sq ► My Wireless Microphone 👉 https://amzn.to/2QBV9W0 ► My Shotgun Microphone 👉 https://amzn.to/36bdLTv ► My Lighting 👉 https://amzn.to/2F5Ey7V ► My Light Diffusers 👉 https://amzn.to/2tjF8fG ================ What Is a Covered Call? A covered call refers to a financial transaction in which the investor selling call options owns an equivalent amount of the underlying security. To execute this an investor holding a long position in an asset then writes (sells) call options on that same asset to generate an income stream. The investor's long position in the asset is the "cover" because it means the seller can deliver the shares if the buyer of the call option chooses to exercise. If the investor simultaneously buys stock and writes call options against that stock position, it is known as a "buy-write" transaction. Understanding Covered Calls Covered calls are a neutral strategy, meaning the investor only expects a minor increase or decrease in the underlying stock price for the life of the written call option. This strategy is often employed when an investor has a short-term neutral view on the asset and for this reason holds the asset long and simultaneously has a short position via the option to generate income from the option premium. Simply put, if an investor intends to hold the underlying stock for a long time but does not expect an appreciable price increase in the near term then they can generate income (premiums) for their account while they wait out the lull. A covered call serves as a short-term hedge on a long stock position and allows investors to earn income via the premium received for writing the option. However, the investor forfeits stock gains if the price moves above the option's strike price. They are also obligated to provide 100 shares at the strike price (for each contract written) if the buyer chooses to exercise the option. A covered call strategy is not useful for a very bullish nor a very bearish investor. If an investor is very bullish, they are typically better off not writing the option and just holding the stock. The option caps the profit on the stock, which could reduce the overall profit of the trade if the stock price spikes. Similarly, if an investor is very bearish, they may be better off simply selling the stock, since the premium received for writing a call option will do little to offset the loss on the stock if the stock plummets. Maximum Profit and Loss The maximum profit of a covered call is equivalent to the strike price of the short call option, less the purchase price of the underlying stock, plus the premium received. The maximum loss is equivalent to the purchase price of the underlying stock less the premium received. ================ #Robinhood #CoveredCalls #TradingOptions ================ DISCLAIMER: This video is for entertainment purposes only. I am not a legal or financial expert or have any authority to give legal or financial advice. While all the information in this video is believed to be accurate at the time of its recording, realize this channel and its author makes no express warranty as to the completeness or accuracy, nor can it accept responsibility for errors appearing in this video. ADVERTISER DISCLOSURE: Jake is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to www.amazon.com. Additionally, other referral links are included and this channel does receive compensation for sending traffic to partner sites. Shopping through our links is an easy way to support the channel and we appreciate and are super grateful for your support! |
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