回复wavePlayer的评论:
Thanks for the such detailed instruction. I will treat you dinner after making money.
wavePlayer 发表评论于
回复whiteoak的评论: Normally it is OTM. When close to stock price, you get more premium. But It's depends on individual stock.
wavePlayer 发表评论于
回复whiteoak的评论: 不一定。1st day has more time value, but to sell call covered call, more important to check IV, and stock price. When underline stock up sharply, and reaches resistance area, this is good time to sell calls.
whiteoak 发表评论于
还有...一定要等到 first day of the oe week 吗?
if the stock pops before oe week, and you know it's a temp pop...should you sell the covered call at that time, since the option can be at higher price....
Thanks again for such a detailed instruction.
whiteoak 发表评论于
请问老大:
是不是说卖 COVERED CALL 的价位都是在 ATM or close to it ?
谢谢.
wavePlayer 发表评论于
回复emmanuel的评论:1. you need to apply to have option trading capability in your account. Sell covered call is the lowest level in option trading and has least risk comparing to other option strategy.
2. To sell covered call you should has at least 100shrs underline stock. 1 call contract means you have the right to buy 100 shrs of stock in certain time frame at fixed price.
Sell covered call is just opposite of call buyer.
By selling a call contract to a buyer, you have obligation to provide 100 shrs of underline stock in certain period of time at fixed price. Since you already have underline stock, so your sold call is "covered" by your stock.
If you do not have stock, you still can sell call, but the call you sell is "naked" meaning the call does not has underline stock to cover. If buyer want to access his/her call contract to buy stock, you have to buy stock from market at market price and provide these shares to the buyer. That is dangerous if you are not seasonal trader.
3. After you done 1 and 2, you are ready to sell covered call. There are two parts to decide call price: 1)Inceptive value 2) time value which also related to volitility of the stock.
1) Inceptive value: example: stock price is $50 and $45 call has $5 inceptive value. (50-45=5)
2) Time value: The longer time the contract period, the higher value of the option contract. example: stock price still $50, $50 call has no inceptive value but only the time value. August $50 call price is $2, so the time value from now to 8/15/08 (OE day) is $2. For Sep. $50 call it cost $3.
So you can sell 1 August $50 call and get $2. By 8/15/08, if stock still has price $50 or under, you get $2. Since the call contract expired worthless, you can sell next month call again.
Normal, sell next month covered call is the best interest of seller. Because the time value decay of option within 30 days is exponential.
emmanuel 发表评论于
Ask a dumb question: how to apply "covered call"? from where broker? Thanks in advance.
waveplayer 发表评论于
回复fly的评论: Naked puts 要求要高的多，风险也大，不推荐新手做。
waveplayer 发表评论于
回复3new的评论: The day to day fluctuation of SKF is large. So even it is not go up, still have chance to make money. SKF will be up since the financial crisis is far from over. And this strategey is just use what we have at hand to lower the cost and even tually get out of trap.
