Deep in The Money Covered Call Strategy Regent

[anger42]

This guy doesn't know what he is talking about. If you write a deep in the money covered call and the position expires more valuable than your strike price....most brokerages will assign your shares at the price you sold the contract. What he is correct about is that you can possibly make about 2.5 to 3 percent a month writing covered calls. One good book to read is the blue collar investor...I read that book cover to cover while I was overseas and it made me money....LOTS of info.

[playone4me]

Can you recommend any books on options?

p.s really appreciate your videos thanks very much

[affluence8]

Thanks. Send me a private message. I will discuss different positions. If you have read a book or 2 I would just say do he positions now. Can you learn to ride a bike by reading a book? Peace. Write back...

[damarcuswilson]

if you sell your option and the stock goes down, would it affect your premium? I mean, the call has been sold and the premium is in your account right?

[anger42]

@damarcuswilson to answer your question...."if you sell your option and the stock goes down, would it affect your premium?" No, once your transaction is over...the money is in your account and the options are in his. Business as far as making money with that one transaction is over as long as he doesn't execute his option or your shares dont get assigned. If the price of your stock goes down....the price of the his options goes down. Your position is hedged...his position isn't as much.

[anger42]

@damarcuswilson another cool strategy you could possibly do with the situation your talking about is to buy the option back. If your covered call is written and the price goes down on the stock and the options. I believe you can buy the option back from the holder of the options. Of course the price will be less than what you sold it for, seeing as how the price fell.

[affluence8]

@anger42 Yes you can buy your call back for less and own the shares free and clear again. In this economy however you have to go really deep to get more protection. So If PM is 65 you can sell the 55 or the 60 Get that extra protection month to month. Premium is only like .50 cents but its better than loosing money like every one else does when the market goes down.

[RoyaLyay]

Ok I think I get it. I just opened my account. Pming you.

[affluence8]

Sry Guys the Picture is Dark though I think the message is Clear. Thanks.