I noticed the premium is higher with a higher strike for calls while the inverse is supposed to be true.
Ticker is $LASR
Premium is $6.20 for a $65 strike and a $67 strike but pays $5.90 for a $66 strike. It’s the same in Webull and Questrade.
I’ve been looking at option premiums all day and this is the best paying one by far. IV is over 110% and delta is around -.50
Thoughts on this are appreciated.
New to covered calls. Very new actually.
Spent most of my morning doing the math on what potential returns look like for several trades on Webull and if my math is accurate, I’m looking at 50% to 80% (sometimes much higher) annual ROI with minimal work input and risk. I realize I’m subject to the volatility of the underlying asset and if the stock price crashes then that’s an absolute loss if I realize it by selling the equity. But regardless of the stock price if I sell covered calls religiously I can more than pay for those shares in premiums over a period of 8 to 14 months, the beta being the biggest factor of course.
Just not exactly sure why everybody isn’t doing this? It wouldn’t appeal to speculators because I think a lot of them are there for the dopamine hit in trading options. But to people like me who just want a solid ROI I’m pretty smitten by this strategy.
Been experimenting with covered calls lately, it seems like a good way to generate income with not as much risk as buying options. Trying to determine what premiums are on different securities to pick my next company to buy another 100 shares of and I noticed the Max Loss segment of this screen and wanted to ask how accurate this is? And also, how is it determined?
$7k is a lot to potentially lose on a trade that pays a little over $200
Thanks everyone
This is my first CC endeavour, not expecting any huge return and not getting attached to the potential profit of my shares going over my strike price.
However, I noticed my shares did surpass the strike and I assumed they’d immediately get assigned and they haven’t so is this normal?
And shares being called away and assigned are the same thing I believe.
Lastly, if I sell to close the covered option right now do I get paid the top figure (119.96) or is there other costs.
Thanks.
I’ve never sold CC before but I’ve got my shares in $FIVN and $AMPX and I’d like to try selling CC to see if it’s worthwhile. The swings in the market right now are really stressing me out so I need to explore risk adverse strategies.
Anyway my question is if I sell this contract at $3.90 is that all I get if my shares get called away? Will I collect this premium (which is actually quite high I’m impressed) and the price for my shares @ 21.34?
Thanks so much to anyone willing to chime in here.
Wondering if anyone with experience selling covered calls could fill me in on how profitable it is? Can’t seem to find much info on how much it pays. Did see a video saying Webull defaults to bid price when selling so if you don’t change it to ask you’re losing out on some premium.
I’ve always been a mediocre player and I’ve been destroyed and humiliated by streamers dozens of times. So in this particular game I had a pretty big chip on my shoulder. My team lost that first fight and they had high ground on me so I decided to hide (like a bitch….in the bathroom) and revive my team for a second chance. Looking back I definitely overreacted but I still get a contact high rewatching this clip from the euphoria of that last win so I thought I’d share. Hope you enjoy it like I do.
Uncirculated coin from Thailand, wondering if it has collector’s value
Everyone knows you can’t trade options unless you subscribe to Level 2 but the NBBO subscription costs twice what level 2 does and I never hear it mentioned. Anyone else use it for options trading?
Thanks
I can’t sell this position I don’t know what to do
So I bought up a bunch of quantum computing stock a few weeks ago with the intention of sitting on them for a decade at least. My thought process is this will be one of the next big trends. All the quantum stuff I have shot up 30% (more or less) and I’m debating now whether to take profit and hoping for a dip because I still want to sit on it for a while.
The stock I’m referring to is:
QBTS
RGTI
IONQ
INFQ
My positions aren’t huge at all, for many of you they’re not even big positions but I make $40k/yr and we have a kid on the way so even a few hundred bucks extra right now would be nice, but the lesson is valuable as well as buying these back if a dip comes up because ultimately I don’t want to risk them for a few hundred dollars.
My question is do you believe everyone will feel how I do this week and take profit or is there momentum left for these shares?
Thanks so much for any advice in advance.
Earnings drop next week and I’m thinking about call options and I have a very informal bull thesis.
Ozympic is immensely popular currently, and Wegovy and Mounjaro are the exact same product. In fact they are so popular that there is a shortage from manufacturers.
So what company is getting these meds to consumers?
Hims and Hers.
Not only are they getting it to them but they’ve done so in the form of a very easy to use app and streamlined the entire process so eloquently that even people who aren’t computer literate could use it without issue.
So you have a high margin industry coupled with a telemedicine platform that sells a product so in demand they can’t even keep it on the shelf.
They’ve beat earnings the last four quarters. The RSI is about smack dab in the middle. The PE ratio is a little high (53 trailing 50 forward) and the IV is extremely high also but this still looks like a good trade to me.
Anyone care to talk me out of it or add anything I might have missed?
My move:
26.5 CALL 26 MAY 15
$2.42 premium
What does the lock icon mean by the price? It’s on the desktop app also, I have no clue what it means.
Thanks in advance.
Decided to open an active trader account but received so much conflicting info online I’m super confused. A branch rep told me the active trader fees are $25/quarter but I found info online just now that says it’s free till dec 31, 26 as part of a promo and you get 30 free trades a quarter. Is that correct?
If it is correct, does that include options? How are the fees structured with options?
I applied for margin account to short sell (doubt I’ll ever use it anytime soon it scares the shit out of me lol) but are the trade fees applicable to shorting? The interest rate is prime +6.5% for CDN and more for US.
I can’t wait till Monday to talk to a rep I wanted to get info from someone using the platform.
Thanks.