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1

When looking at the risk of a portfolio it is important to look at both up and down side risk. As other's have mentioned, your calculations regarding the option sale proceeds are a bit low. The thing I would like to add to this is that currently the bid-offer spread of call options at strike price (K) = $125 is $5.10 - $13.30 (VPU options). This means if you ...


0

You haven't actually run the numbers to determine whether or not this trade is a winning plan. You seem to think that maybe you have, but you haven't. Keep in mind that covered calls can be deceptive. At first glance, they seem like a win-win strategy. If the underlying goes down or stays the same, then the option premium is extra money in your pocket. If ...


4

First, a small correction in terminology. In a covered call you sell a short call not a long call. Dividends do not boost profits because the stock exchanges reduce share price by the amount of the dividend on the ex-dividend date. You could go so far as to suggest that a dividend 'boosts' the potential profit of the covered call but in truth, proper ...


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A six month time period whereby the amount of income and capital-gain is logically planned ? The position is exposed to loss on the downside of the underlying. The underlying could be hedged by selling three micro-S&P 500 futures but then loss on the hedge is a problem on the upside of the hedge. But the hedge is liquid and available almost 23 hours a ...


1

I want to sell a long call @ $125 strike price (Until December) which will yield about $920 (I checked this in RH today) The bid-ask midpoint of the call is $9.20, but the spread appears very wide, so you may get less than that. However, you seem to be counting only 1 contract, whereas you would sell 4 contracts against 400 shares, right? So you would get ...


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