Questions tagged [covered-call]
The covered-call tag has no usage guidance.
4 questions
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Why hold calls until expiration?
I am reading a book on options basics. I am in a chapter on selling covered calls. The author says that buyers of calls almost always hold the calls until expiration.
Why is this? Here's how I ...
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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 ...
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Can closing a covered call and opening a new covered call trigger a wash sale?
In Jan 2019, I bought 200 QQQ (ETF) at about $160 and also wrote two covered calls for June 2019 at 170 (higher than the last day price) netting a small premium. Now QQQ is at about 185 so it will be ...
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Covered call on stock held for different periods
Say I have 10000 shares of some stock X. Say 5000 of them were bought 2 years ago and the other 5000 were bought a month ago. These two batches would have different amount of gains and different tax ...
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