All Questions
Tagged with covered-call covered-call-writing
13 questions
1
vote
3
answers
343
views
Am I buying back my same covered call I wrote?
So I understand that a recommended strategy when selling Covered Calls is to buy it back before it expires.
What I'm unclear on is am I buying back the exact Covered Call I wrote? Or is it someone ...
- 11
0
votes
2
answers
1k
views
Poor Man Covered Call Trade Selection and Set up
I did some learning on the PMCC strategy and thinking to implement it on SPY.
As the reading materials urged I have been trying to make sure the initial set up long ITM LEAP at around 0.8 delta, and ...
- 101
0
votes
2
answers
501
views
Suggestion to recover from a bad naked call
I sold a Jan 2026 CRWD $140 Call, and now the price skyrocket to 235 (I know, bad move)
How do one usually get out of this situation?
Many thanks.
- 3
-1
votes
1
answer
132
views
How to trade stock e.g, BABA using monthly options (wheel strategy)?
Say you want to buy up to 400 shares of BABA in the current $130 range to $100. How do you implement an option strategy in the meantime to make some extra cash while waiting for a $10 stock gain?
Buy ...
- 29
1
vote
1
answer
201
views
Covered call buy-to-close using sale of underlying?
If I write a covered call, my account will be long the underlying and short a call. Say I withdraw the premium from my brokerage account and spend it, invest it elsewhere, etc.
If I want to later sell ...
0
votes
1
answer
971
views
How to manage covered call position when stock price goes down
So let's say you have a position like this
bought 100 shares of XYZ at $50
sold 1 covered call at $55 strike, received a premium of $2
stock price goes down to $35
now premiums for strike prices ...
- 11
1
vote
0
answers
199
views
What Nifty 50 ETFS in India allows covered calls? [closed]
I want to buy a Nifty ETF such as SBI-ETF Nifty 50 or Nippon India ETF Nifty BeES but I am not able to figure out if these ETFs allow for covered calls to be written. Can members guide me which of ...
- 31
2
votes
2
answers
411
views
Can a buy order be skipped when price rises rapidly?
I would like to know, if it is possible or likely, that an "out the money" share buy order would be skipped, when a stock prise rises very rapidly.
Context:
I have 466 shares of tesla. I ...
- 365
0
votes
1
answer
249
views
Does closing an unqualified covered call option result in realization of gains on the underlying?
In general, in a covered call scenario, does any trade on the options contracts trigger a realization of capital gains on the underlying? I am not concerned about the reset of the holding period on ...
- 103
13
votes
4
answers
12k
views
Why do people exercise call options at a loss?
I sold some call options for $2.55 premium at strike price of $130. At expiration, the market price was $130.55. I thought the option was not deep in the money and at a loss of $2, hence I didn't ...
- 139
-2
votes
3
answers
1k
views
Selling covered calls does not make sense
I have one bitcoin and was thinking about selling call while owning the asset.
However after some pondering I came to the conclusion that if price drops then the strategy can only be performed one ...
- 107
1
vote
1
answer
858
views
Approach to roll down a Covered Call
If I sell a covered call and the stock declines some time before expiry, what would be a strategic approach to roll down the call to protect the downside, or are there any other approach to do it? Do ...
user11530
0
votes
1
answer
2k
views
Deep in the money Covered Calls with high premiums
Take a look at following option chain, it's for some company in Indian markets,
I intend to do a covered call on the stock but I would want a little extra downside protection at the cost of little ...
user11530