Generate Monthly Income with Covered Call Options Part 1
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Please note that foreign exchange and other leveraged trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary.
A potential high risk of selling call options for some premium out of the money, is that, for example, you may be collecting a couple hundred dollars in premium while the value of your stock drops by thousands of dollars. Sometimes, if you think the stock price has had a good run higher, has topped out and may fall back some 10 to 20%, the call option premium will be of very little consolation.
Good explanation.
Nice explanation, thank you!
Enjoy your videos
This the best explanation of any of this stuff I've ever heard. A++ job.
Free stuff do exist in the internet TQ Adam best mentor ever
3.9% x 9 = 35.1% per year..No?
Great video! Two questions. The reason you want the contract to expire worthless is so you keep the premium and your shares?
What happens if the stock drops 5 bucks? You still keep the premium but just lose on the stock value? Anything else?
is there a course where i can learn everything about Covered Call options??
My coworker has Fidelity doing this for him.. They actually contacted him about this.. Fidelity gives him anywhere from 7-10 monthly..
Adam thank you for this!! Man you just have a way of simplifying it. I’ll be looking st trying some of these strategies out.
I wish I could sell options, my bank required 50k of money before doing that. it's soo easy because the theta is helping you
It’s seem to me that I can grasp the concept of selling puts and selling call easier than buying puts and buying calls, don’t know why that is. Lol.
Hi. Just wondering if you can sell puts and sell calls for the same stock simultaneously? Thanks.
worse way to make money.
1. u need a big margin. i rather use the money in something else.
2. very small pay.
First it's important to build the skills to make a view of the market, same view is applicable to most of the instruments.
Forex halal or haram
What a great job! I've been studying options for awhile now, and I have to say that Adam did an incredible job explaining much about covered calls in a very short amount of time! Very impressive!
Can you make a video on call debit spread
Hello Adam – at 10:05, from a starting breakeven at 50, and having sold a call for 1.50, isn't the new breakeven now 48.50?
ugh.. Adam will you just tell me what shares to buy everyday lol? The stock market is eating me up right now man. I wish i would've saw this video a while back. I'm still learning and apparently I'm learning the hard way. I'm not giving up, i just need to come up with a different game plan, cause obviously what i'm doing is NOT working. I bought a few calls on apple and amazon and made a little money, then i got cocky and bought a bunch of other options that don't have a ton of volume and now they are expiring worthless tomorrow. There's alot more learning i need to do. Thanks for the video! I love your channel and the way you explain things. You are very knowledgeable and me personally i'm grateful that you are teaching us! You're the best!
Where you find 1.5 on KO!? Lol
greaters of all time @adamkhoo
Adam, your explanation is clear, thanks
Adam, do you have a course on this? I have always been curious about how to make money with options trading but never quite understood the terminology and process etc. What are "Calls", "Puts", "Strike Price" etc. Thanks
this is huge! thanks for the video
Best tutor on you tube. Awesome.
I've been a fan, but now I see you numbers are all just made up. KO calls go no where near 1.50. More like .09 in the near term or .25 for 180 days out. So I'm calling BS on your numbers.
I really like all courses you provided. Of courses, your YouTube videos.
Is it just me or are options just complex?
Binary options have been, or will soon be, banned in Europe. Too many people losing too much money, I think.
Thanx you Mr. Adam
High risk strategy which requires lot of margin.
But the best way to sell are far otm calls and puts. If the stock opens huge up or gap down the next day(which is very rare), then that's it. Kaboom!!
Warren buffet made millions just only by selling otm options.
Wonderful strategy…thanks
Thanks
awesome vid! Could you possibly do a market update and outlook on the hangseng index? THANKS!
Not first!