Everything You Need to Know About Covered Calls
In this video I explain everything you need to know about covered calls. What they are, hot to execute one, the risks, the benefits, etc.
Please refer to the time stamps below. I jump around a lot, so you can just click on whichever chapter or go ahead and watch the whole thing!
Timestamps:
00:00 Intro
00:21 What is a covered call?
00:53 100 Shares of stock P and L diagram
1:22 Short Call P and L diagram
1:59 Covered Call P and L diagram
2:51 1 option contract controls 100 shares of stock
3:15 covered call “collateral”
3:48 Selling a call obligation
4:11 calculating downside breakeven
4:52 “upside breakeven” point
5:45 covered call visualization
8:44 How to profit
9:49 How to lose money
10:12 covered call benefits
11:23 covered call negatives
12:01 Selecting the correct strike price
12:40 is there an edge?
13:03 Rolling
13:37 Stock Pick (not financial advice; do your own due diligence
17:22 End!