All Questions
5 questions
1
vote
2
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Writing call options, when do I receive premium?
I own 100 shares of a stock and I would like to get into writing covered calls.
I'm just curious:
If I write a contract, do I immediately receive payment for it from my broker? Or do I have to wait ...
- 15
2
votes
0
answers
83
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Can companies raise cash by selling covered call options on their treasury stock?
Suppose a company has lots of treasury shares. Can it raise cash by selling call options covered by the treasury stock? If the stock price ends below the strike price of the calls sold, then the ...
- 17.2k
1
vote
1
answer
2k
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Accounting Entry for Selling a Covered Call
I recently started looking at trading options and started with the time honored tradition of selling a covered call. What I don't understand now is what my trading platform (TD Ameritrade) balances ...
- 171
2
votes
2
answers
1k
views
how do I calculate rate of return on call options that are spread
I want to do a leap spread on an existing covered call option. How do I calculate the rate of return to determine if it's worth doing the leap spread?
- 21
12
votes
4
answers
980
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Covered Call Writing - What affects the price of the options?
A little while ago, I bought $800 worth of stocks and sold about $200 worth in call options against the stock. I think it was 200 shares and 2 contracts (so my options weren't naked).
That takes the ...
- 221