As shown in this picture, how do I execute the strategy highlighted in yellow? I am based in the UK.
Source: http://seekingalpha.com/article/274231-intel-dividend-champion-in-the-making (10/6/11)
As shown in this picture, how do I execute the strategy highlighted in yellow? I am based in the UK.
Source: http://seekingalpha.com/article/274231-intel-dividend-champion-in-the-making (10/6/11)
The Options look like this (I clipped to show just these two).
You call the broker, and buy 100 shares of INTC for $2,132 and then ask to "Sell to Open" one contract of the September $23 call for $41, which is what it trades at this minute. If Intel goes to $30, That guy you sold the $41 valued option now has $700 for his money, and you just sold the stock for $2300, instead of $3000. Selling covered calls for these small amounts is no way to get rich.