100% Success Trading COVERED CALL Options!

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3 жыл бұрын

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In this video we will talk about an options strategy called the COVERED CALL. In the covered call you are going to use 100 shares of a stock that you open as collateral to collect options premium. You do this buy selling a call options. When you do this the buyer of the option will pay you for it. The money received is called premium. You can do this over and over to make more money inside your portfolio.
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DISCLAIMER: The content discussed in these videos are solely my opinion and should never be used as financial advice. This channel is for entertainment purposes only. Make sure to consult with a professional before making money decisions. This video and description contain affiliate links, which means that if you click on one of the product links, I’ll receive a small commission; all of which helps grow the channel! Thank you for your support!

Пікірлер: 1 100

@BradFinn 3 жыл бұрын

*Wheel Strategey Guide and Journal **amzn.to/3qL2K82* *Cover Call MISTAKES Video* kzfaq.info/get/bejne/nJ6Ch8yBm9XVZJs.html *Learn Options Playlist* kzfaq.info/sun/PLKkDvxOyGhXNQScWSs94PZEHpTPx93M7F *This is the type of lesson you can expect in "The Beginners Guide To Trading Options"* averagemoney.teachable.com

@Eastbaypisces Жыл бұрын

so when do the cc disappear from my acct after they expire, its exp day today after closing hours and they still on my screen

@yootoobur101 3 жыл бұрын

I’ve watched so many selling call options videos and learned from you the most. Thank you for your very easy-to-understand explanations. Subscribed.

@BradFinn 3 жыл бұрын

Welcome.

@rockpatrickjoly 3 жыл бұрын

You are really a good teacher. I am a (french) call option buyer for years with I would say, with a very good yield and I am a quite older than you. You have just gave me the proper information I need to go further because you made the hole thing simpler. Thank you young man! I am a new subscriber!

@creditspreadtrading3893 3 жыл бұрын

Great overview of CCs. I am a CC junkie and this was one of the best “un-hyped” videos out there. I prefer to do them on Monday for Friday expiration at 25 delta. If I get roughly the same premium every week x 52 weeks, the “yield” can be large, where I really don’t care if the stock returns anything over the year. Makes you think of the stock in a different way.

@someguy5920 3 жыл бұрын

What stock(s) would you recommend for CCs as a seller? Sounds like you found some that are stable.

@creditspreadtrading3893 3 жыл бұрын

@@someguy5920 well, stable in terms of getting similar premium @ 25% ITM level every week. On Tesla, I get around $1k week per contract at that level. That’s $52k/year in income on capital of around $67,000 (based on today’s price). So, even if Tesla returns 0% for the year, I am getting around 75% in income. You just got to have the stomach for the volatility (and of course enough $$ to buy 100 shares)

@someguy5920 3 жыл бұрын

@@creditspreadtrading3893 So you're selling naked calls. Gutsy move. I admire that. I'm gearing up to do my first covered call. Based on videos I've watched, it appears to be an easy process on RH, but the etrade user interface is more complicated.

@creditspreadtrading3893 3 жыл бұрын

@@someguy5920 no, I’m doing covered calls on Tesla. I own 100 shares and sell 1 call a week against it. This week has been crazy as the stock tanked then shot up but that volatility is what generates the great premium on the stock.

@someguy5920 3 жыл бұрын

@@creditspreadtrading3893 awesome

@ctslotsfun624 3 жыл бұрын

As a beginner , can thank you enough so far this is the most objective and concise tutorial I have seen on youtube... you are a Tru teacher... signing up for your patreon. thanks again.

@BradFinn 3 жыл бұрын

Wow, thank you!

@someguy5920 3 жыл бұрын

Great video, Brad! What are the pros/cons of selling a covered call with an expiration date that falls between the Ex-Dividend Date and the Dividend Pay Date? Assuming that the underlying stock is a long-term hold for the seller, would the buyer of the call option receive the dividend, even though he didn't own the stocks prior to the Ex-Dividend Date? Is that risk 'baked into' the Delta? You mentioned that Buyers should never buy call options right before earnings reports - what are the things that Sellers of call options should never do? Thanks!

@andylopez8498 3 жыл бұрын

I’ve seen a lot of confusing videos about option trading on youtube and just looking for the “thumps up”. I got to say your videos are honestly one of the best I’ve seen so far. Appreciate you making things clear and easy to understand. Thanks man! 👍🏼

@BradFinn 3 жыл бұрын

I appreciate that! Thank you for the kind words

@FrankMularcik 3 жыл бұрын

Solid tutorial. Can tell you are a teacher for sure haha

@BradFinn 3 жыл бұрын

Thank bud

@ludwigmangones2319 3 жыл бұрын

This was/is the best "Covered Call" video I have watch to date! THANK YOU.

@BradFinn 3 жыл бұрын

Wow.. thank you so much for the kind words

@ludwigmangones2319 3 жыл бұрын

@@BradFinn I already setup four CC trades using your formula yesterday.

@innovateandinvest 3 жыл бұрын

same here

@yfngeekpage8554 3 жыл бұрын

This explained so much I literally wasn’t sure if I could ever understand the concept until you explained it that way thank you!

@BradFinn 3 жыл бұрын

Glad it helped!

@chrismgrimes 3 жыл бұрын

Agreed, I’m ready now

@ranjanarora2769 3 жыл бұрын

Excellent video, simple and easy to follow. I was beating myself on collecting small premiums at times but after watching the video feel better so much. I would also like to add that you could roll over before expiration in case you didn't want shares to be taken away. Solid content. Thanks

@BradFinn 3 жыл бұрын

Correct. I mentioned in the video that you could always buy to close your options

@DiverseLA 2 жыл бұрын

I think covered calls are great if you are down in a stock and you simply want to get out of the play and get a little profit. Might as well collect the premium in addition to the profit from an OTM call. If it expires OTM then you just keep the premium and do it again until the shares get sold.

@robinruane6255 3 жыл бұрын

Love this super thorough explanation of the whys and how's etc of covered calls! So helpful!

@BradFinn 3 жыл бұрын

Glad it helped.. this is what you can expect from the course!

@robinruane6255 3 жыл бұрын

I started the course and will be continuing the next night I have some time I can devote to it. I like what I see so far!

@danironen1 3 жыл бұрын

errors you made(unintentionally of course) at time stamp 24:47 , 24:52 and 25:11 you meant to say delta(not premium or theta). i hope no one got confused anyway:)

@BradFinn 3 жыл бұрын

Thank you

@TheotisJames 3 жыл бұрын

This was pretty solid, I liked the delta percentage tip. I just sold my first call today, and didn’t know that.

@BradFinn 3 жыл бұрын

Cheers!

@matthewmueller-lewis3377 3 жыл бұрын

Hey, Brad. Thanks for the great video. Toward the end when looking for a stock, you were looking at the Delta and said Premium and Theta.

@BradFinn 3 жыл бұрын

Correct. Thank you

@nicholasflorio7797 3 жыл бұрын

I was so confused until I watched this thank you so much

@BradFinn 3 жыл бұрын

Your very welcome

@codydietrich4246 3 жыл бұрын

Your the man!! Super glad i found your channel! The youtube algo must be working because i have never even searched for options trading.

@BradFinn 3 жыл бұрын

Cheers

@fredsimpson2916 3 жыл бұрын

Best covered call video I’ve found. Not just because of the info covered, but also because of your speaking tempo and visuals. Great job sir.

@BradFinn 3 жыл бұрын

Wow, thank you!

@donnaroni 2 жыл бұрын

Excellent video on covered calls. Love your easy-to-understand, straightforward explanations! Thank you for making great, quality content! :)

@BradFinn 2 жыл бұрын

Cheers

@unspecified_brain 3 жыл бұрын

Brad, thankyou for the best 'how to' covered calls video on KZfaq.

@BradFinn 3 жыл бұрын

Cheers. Thank you

@timcrowhurst2524 3 жыл бұрын

well hell, I didn't know there was a weekly option chain. Going to start doing this in my IRA, better late than never

@ntheq3982 3 жыл бұрын

Appreciate the info you provide. Do you have a book on options that you really liked & can recommend but not just for beginners. Thx

@TheRichuationRoom 3 жыл бұрын

Always do a great job breaking down options to make it easy to understand. Keep it up Brad!

@BradFinn 3 жыл бұрын

I appreciate that!

@chengu832 3 жыл бұрын

Amazing! I wish this video was out when I first started learning about options!

@BradFinn 3 жыл бұрын

Thank you. Please share it with someone who is!

@jamec1 3 жыл бұрын

Thanks for this video. I now realize I should have been doing this years ago as another source of income.

@illuminotme825 3 жыл бұрын

This is the best video that explained covered calls to me. Before this video I did my first covered call on 1 contract for TSLA that I've held for 8 years. It was a week long nail biting affair watching the price shoot up to almost my strike price. Luckily, I came out still holding my shares and collecting a $1525 premium. Your video will help me do better next time on a much more way out of the money call. Thank you.

@BradFinn 3 жыл бұрын

Glad to hear. Thank you!

@LucidVisionMane 3 жыл бұрын

Best video I’ve seen on covered calls. Thank you so much. So clear and detailed

@BradFinn 3 жыл бұрын

Wow, thank you!

@shmodzilla 3 жыл бұрын

This was fantastic man. I couldn't figure out why i got 175 dollar premium on my first contract this morning then it says its negative 176 dollars haha. Been looking for hours for the answer.

@cnotake 3 жыл бұрын

Great video! I was looking for a video like this. Thanks.

@BradFinn 3 жыл бұрын

Glad it was helpful!

@lds2906 3 жыл бұрын

Nicely done Brad!, the additional attention and advice to details like picking wrong stocks due to premium are really helpful to a lot of people out there. Thanks for sharing!

@BradFinn 3 жыл бұрын

My pleasure!

@justindecrosta6469 3 жыл бұрын

Been researching covered calls and this was the best vid that I found. Thank you

@BradFinn 3 жыл бұрын

Awesome, thank you!

@robbieb2011 3 жыл бұрын

What I have learned selling covered calls is always be comfortable if the worst case scenario happens, being assigned. So don't chase premium. Instead think about the opportunity cost if the stock rips. Also, if you get assigned you simply buy back and top up to 100 shares and enter into another covered call immediately. You can be a little riskier the 2nd time because the stock price has already increased (which got you assigned). So you can play the odds and slightly increase premium (risk) right after getting assigned and buying back in. The opposite with getting assigned when selling puts. When you are assigned selling puts and you now own the stock covered calls are much dangerous because there is more support for the stock to rise.

@BradFinn 3 жыл бұрын

👍🏻

@davidcarrington8928 3 жыл бұрын

This was extremely helpful it answered a few questions I still had to the process and I intend to rewatch it at least 1 or 2 times. Off the jump I still have one question tho, you said you have 7k to work with and pulling in about 2500 in premiums. How ? If your sticking 2k into one contract worth of stock for several weeks to 45 days and the premium is only 60 bucks....... seems like a lotta time invested for comparatively small gain ? And even if you did 4 of those over a month it's still not even close to 2500 in premiums ? ...... Maybe I missed something in there. Thanks I'll be doing my first option trade ever after a few more of your video's. Fingers crossed

@js48704 3 жыл бұрын

Would really love to see this question get answered.

@kygo 2 жыл бұрын

Yeah I don't get it... in his example he would have to have 100 x dropbox shares, and let's assume at the current price of $23, so $2,300 tied up in shares... and if the call expires in 30 days out the money, you make $68, so a ~3% return. Nothing close to pulling in 2,500 in premiums a month? Plus you risk those shares finishing in the money and having to sell, not to mention time / effort, is it really worth it for $68...

@stevestough245wind 3 жыл бұрын

Thank you Brad for making this video this puts my mind at ease to make a covered call. I will watch this video time and time again.

@BradFinn 3 жыл бұрын

Glad it was helpful!

@GI_Regulation 3 жыл бұрын

Great explanation, interested to understand why are chances of getting assigned before expiration is less if the stock trades above strike price ?

@patrickguiteau715 3 жыл бұрын

🤯BRO THANK YOU! White board is great for options math.

@BradFinn 3 жыл бұрын

Youre welcome. I hope to use it more!

@GrowingForever 2 жыл бұрын

Great explanation, thank you!

@BradFinn 2 жыл бұрын

You’re very welcome

@MjandJuwie 2 жыл бұрын

Very good explanation, covered calls with a simple plan. But did I hear you right??? Did you say you have a portfolio worth 7k and making 2k in premiums a month? I'm just getting started with 20k and getting more like 500 a month in premiums. I don't see how you can do it with a delta of less than .3 my premiums are much less.

@MjandJuwie 2 жыл бұрын

@@BradFinn Did you say in your covered calls intro you have a portfolio of 7k and making 2k on premiums a month? I'm doing more like $500 a month on 20k when choosing contracts with a delta of .3. How are you doing 2k?

@Chris-jo3nb 2 жыл бұрын

@@MjandJuwie Yes, I agree.

@GaHullbillyRanch 2 жыл бұрын

@@BradFinn why do they offer covered calls at a lower strike price than the current share price? Do some people buy cc that has a lower strike price?

@edwarda7553 3 жыл бұрын

That was a great explanation, simple and understandable. I watched your PMCC videos but im still confused about it. Can you make another video about PMCC like this videos , simple and understandable?

@Sleazy.e 3 жыл бұрын

First off, great video, extremely informative. I've been looking at doing this with one of my favorite etf's i've been eyeballing. not married to it and all that, but just wondering, why not do this on a much shorter timeframe? when im writing this it's 6/14, markets closed for it at 344.5, and and options for 6/18 at the 346 strike are selling at 1.52 per share for $152 total. pretend for a second i bought 100 shares right before close, bringing my cost basis to $34,450, and sold a the 6/18 call for $152. say qqq takes off and closes at $350 6/18 at close and i get assigned. so i collect the premium, $152, plus the difference in share and strike price x100, 1.5x100= 150, so i net 302 in 2 days? close to 1% in two days? does theta come into play ? i must be missing something, sounds too good to be true

@dirtybird311 3 жыл бұрын

Good stuff as always. Definitely enjoy the onscreen notes.

@BradFinn 3 жыл бұрын

Thanks Jason. I wish I had been doing this sooner for tutorials.. haha.. do it in school while im teaching but it never crossed my mind to do while I as teaching this stuff

@dirtybird311 3 жыл бұрын

@@accordingtovin605 I wonder why your name is not highlighted anymore? Are you really Brad Finn? What’s whatsapp? Is that a phone number? How much does this cost? Do you provide refunds?

@cuhyu382 3 жыл бұрын

What’s the last day that you can sell a put or call. Like on feb 19 what’s the last day I can sell a put for that day? A day before? Two?

@brandonlink7091 3 жыл бұрын

The same day of, it would be a day trade though when you buy to close it

@CongoAnalyse 3 жыл бұрын

Very clear, excellent presentation done with love. I understood everything in the three outcomes when selling covered calls. Thank brother. I like and subscribe.

@BradFinn 3 жыл бұрын

Glad it was helpful. Thank you for the kind words

@datboinate0192 3 жыл бұрын

Can you explain more about Strike Basis & Premium How you came up with the 700 It's alittle confusing Thanks

@Thetatraderz 3 жыл бұрын

Also did csp on dbx past 2 weeks. Gives good premium lately.

@BradFinn 3 жыл бұрын

Yes it does

@tylerboissonneault1517 3 жыл бұрын

Just started selling call options on T & KO. Man it’s a nice feeling to make easy money on the premiums. Not making a boat load of money but I’m not greedy! Great video to learn from !

@BradFinn 3 жыл бұрын

Right on!

@tylerboissonneault1517 3 жыл бұрын

@@thefrankperspective4247 absolutely !

@lahatimuga6836 3 жыл бұрын

Can you tell me what's T & KO and how you make that easy money?

@Eastbaypisces Жыл бұрын

yup but it all adds up when u do the math, but its exp today and 10pm but it says cc still in my acct w exp today, when do they disappear??

@io5738 3 жыл бұрын

Very nice video thank you very much. One question, what happens if the stock price at expiration falls below your cost basis? What's the strategy in that case? Thanks!

@Mr.NeonPanda 3 жыл бұрын

Awesomeness!!!!!!! Thanks for clearing up tons pf questions and even made me aware of a few things I didn't know. Good on ya mate.

@BradFinn 3 жыл бұрын

Any time! Cheers

@tehbui604 3 жыл бұрын

hey brad, just found your videos and love them! Just one question for you.. you say one of the downside is if you have a lot of unrealized gains and if the call gets exercised, you'll have to pay the capital gain on that. Don't you eventually have to pay capital gain on it anyways when you finally decide to sell? They cant charge capital gain twice or anything can they? Thanks!

@rcoop58951 3 жыл бұрын

Probably the difference though of short term versus long term capital gains that’s where the difference would be I think

@seymoresmithh8908 3 жыл бұрын

If you held it over 1 year then it’s long term cap gain. If you are married to that stock and want to hold it even longer because you think it will go even higher then you don’t want to sell CC against it and risk it being assigned (sold). You can buy back the shares but then have to wait another year for long term cap gain benefits.

@clsboo2348 3 жыл бұрын

@pc3822 3 жыл бұрын

At 25:11 you mention "theta" but I think you meant to say "delta" instead. Just trying to be helpful... :-) Thanks for the video, great info.

@abigailpatterson9432 3 жыл бұрын

I want to thank you for taking the time out to make this tutorial. I really appreciate the way you explained it. I definitely have a much better understanding. Would you be able to make a video on the strategy to Buy to Close before expiry and stocks you recommend? I would really appreciate it.

@BradFinn 3 жыл бұрын

kzfaq.info/get/bejne/nMybn8l1tafVhI0.html

@stephenjoseph6051 2 жыл бұрын

Thank you..after watching I realized how many blind option trades I made .. thank you I like the criteria you laid out

@BradFinn 2 жыл бұрын

No problem

@timallen2941 3 жыл бұрын

*stares nervously at my 100 shares of petco that I got just to try out covered calls*

@pouncerminned863 3 жыл бұрын

why you nervous?

@Perezdoesstuff 3 жыл бұрын

Lmaooooo this is guna be me when I finally pull the trigger on this

@404HumanNotFound 3 жыл бұрын

You should have sold a PUT at the strike price you wanted to get assigned at and than sell your covered CALL.

@timallen2941 3 жыл бұрын

@@404HumanNotFound that’s what I’m doing now but fidelity won’t let me get cash covered puts till august 16th

@404HumanNotFound 3 жыл бұрын

@@timallen2941 Not sure why they would do that?

@tylerevans9007 3 жыл бұрын

Really great video. I found it after watching your PMCC video and discovering I'm not approved for that strategy with TD Ameritrade. Really appreciate the emphasis on sticking to your criteria and not getting greedy while looking at the premium.

@onestepaheadintheworldofin5426 Жыл бұрын

Never do PMCC on Robinhood. I had PMCC on BABA and once my option went out of money,they didn't let me sell call on it.

@Thethriftpicker 3 жыл бұрын

Great breakdown. I’m still new to options and looking for extra ways to bring in money as we travel the country. This seems like a great way to bring in a little extra each month. Thanks.

@BradFinn 3 жыл бұрын

Best of luck!

@besthome7271 3 жыл бұрын

Very good content, I would like to know if you would sell covered calls on a stock that has tanked in price knowing you might have to buy to close in order to not get shares sold for a loss. I unfortunately own plug and am down $25.00 per share than the current price and wanted to make some money back with covered calls, any advice would be appreciated, thanks.

@nivelsookoo9779 3 жыл бұрын

Thanks for introducing me to the PMCC man just sold my first one yesterday

@BradFinn 3 жыл бұрын

YES!! Good luck

@Alex91six 3 жыл бұрын

Yeah the ghetto spread (PMCC) is the way to go!

@greatcoalition 3 жыл бұрын

how did it go?

@nivelsookoo9779 3 жыл бұрын

@@greatcoalition collected about $100 in premium so far and the option never was up around $150 so would say its worth doing

@weekswithu 3 жыл бұрын

@@nivelsookoo9779 how much money should I start with in my portfolio for a beginner

@zoe-re4yf 3 жыл бұрын

how stupid could i be to dislike a video like this by accident when i know i could come back to watch it again before i place my covered call because the theta and betha part is very important to undersdand..anyway sorry bout that i just gave u a big thumbs up and i'm joining the discord soon

@BradFinn 3 жыл бұрын

Cheers!!

@sarahvandistel9830 3 жыл бұрын

Thank you so much for this fantastic tutorial! I have one question : Suppose I wrote my covered call with a strike of 100 and that at some point before expiration the stock shoots through the roof. I would then like to close the position (i.e. buy the call). If the underlying climbed a lot, is it correct to assume that the premium to buy the call can be much higher than the premium for which I sold the contract? Thank you and congratulations for you crisp clear explanations!

@BradFinn 3 жыл бұрын

Thank you for watching. Check out my video on closing options for the answer to your question

@poeryudo 3 жыл бұрын

Thank you for the fantastic tutorial! One question though.... How do you handle ex dividend dates when placing a covered call?

@BradFinn 3 жыл бұрын

Usually Avoid That Week. (Usually Not Always)

@qwerty70403 3 жыл бұрын

Okay. With around 7,000 and usually a .3 delta. How are you pulling 2,500 a month? Are the poor man covered calls making more for you than regular covered calls? I'm around 11,000 and gaining around 1,000 a month selling puts. Im wondering if I need to switch to selling calls.

@aroldovillarreal7442 3 жыл бұрын

Same question here 🤔

@friedpickles342 3 жыл бұрын

What tickers are you playing

@qwerty70403 3 жыл бұрын

@@friedpickles342 at the moment. NIO, WKHS, ICLN, PALANTIR whatever their ticker is. I did gamestop before it exploded. I use others but these have been great to me.

@Putseller100 3 жыл бұрын

I honestly don't get the issue with paying cap gains tax. I mean why are people even in the market to begin with? The largest taxable event people face is their jobs. For some reason people are not quitting their jobs because they have to pay tax. Yet, with enough capital you can make a living trading/selling options and people are afraid to pay a tax

@BradFinn 3 жыл бұрын

FACTS!!

@PaulL17 3 жыл бұрын

So true!

@surfguy777 3 жыл бұрын

Couldn't agree more! Monthly cash flow is king.

@karolkupec2044 2 жыл бұрын

Not afraid, people feel like taxation is theft.

@christophermccord3316 Жыл бұрын

Because in theory you've already paid taxes just to get the money you have to invest so it's like getting taxed two or more times on the same money.... now of course the second taxing was on passive income which is by far much easier to obtain than working your ass off for but still....

@thomasschneider2490 3 жыл бұрын

Great video! Very good info. I had a question. You kept saying to use your cost basis and set the option above that? Is that what you meant? For example... What if you owned F a few years ago when it was around $12/share... Then it dropped to $5/share? Are you still looking to use this strategy above $12/share, seemed like you wouldn't make much. And swap that around, what if you bought F at it's lows last year around $5/share, and now its sitting at $12/share... Are you still looking at your cost basis? Thanks!

@PeaceLoveAndMagic22 Жыл бұрын

Thanks for the easy-to-understand video. It's exactly what I needed to understand calls better.

@BradFinn Жыл бұрын

Right on

@marcinchaszczewski9052 3 жыл бұрын

Can you quickly explain how many trade and what it looks like to make 2.5k from 7k portfolio. When a good share costs $50, that's 5000 contract that you need to hold for 45 days. Where does the 2.5k per month come from? Are you selling. And buying the same call multiple times per day? This will clear up a lot for me and others. Thanks

@BradFinn 3 жыл бұрын

That is the sum of all my options plays. Not just CC's. Most of my income comes from poor mans covered calls.. I am running the wheel on about 6 stocks..

@marcinchaszczewski9052 3 жыл бұрын

@@BradFinn cool, so roughly how many open closed transactions is that?

@BradFinn 3 жыл бұрын

75-100

@PattayaNight 3 жыл бұрын

@@BradFinn Can you tell me the stocks you are running? if not on here can you message me directly? thanks, love your channel.

@vatanshenas 3 жыл бұрын

@@BradFinn Can you show the breakdown. I think it's impossible to make 2.5K out of 7K portfolio by Wheel strategy, selling cove calls, or even PMCC in just 45 days. These strategies required more capital especially on a standard option account that required cash-secured put.

@AlekVila 3 жыл бұрын

Great video! Do you typically let these expire? Also, do you concern yourself with volatility, liquidity, and the bid/ask spread? Finally, in your experience, how much capital is needed to be earning $3K per month in covered call premiums?

@Eastbaypisces Жыл бұрын

A lot

@jamesjacob6841 2 жыл бұрын

Excellent video. thanks so much for it. im new to option and this explanation was great.

@forzaracer 3 жыл бұрын

Excellent video thank you! The best explanation so far. Maybe in the future include a buy to close so people know how to do it (even though you explained it perfectly). Also could you make a video on call credit spread or call debit spread and how to close each one of those positions?

@BradFinn 3 жыл бұрын

Thank you. I have a video on credit spreads I did about a month back. Next time I close something Ill record it if im by my camera

@forzaracer 3 жыл бұрын

@@BradFinn Thank you so much! You are helping people take control of their future and I am forever grateful!

@brenton9492 3 жыл бұрын

Thanks brad! Now I can sell Covered Calls on GameStop! Jk lol great vid bud

@BradFinn 3 жыл бұрын

If your brokerage will let you.. haha.. thanks

@blockededited8280 3 жыл бұрын

💎👐🚀

@colbymchenry9570 3 жыл бұрын

I feel you should mention that if the stock declines in value past your premium you can take pretty hefty losses and you’ll just have to keep writing the calls to bring basis down to break even or sell the stock. This strategy works great in the current bull market, but what about a bear market?

@BradFinn 3 жыл бұрын

Pal, in a cover call is the share price is below the strike your option expires worth and nothing happens except keeping the premium. As mentioned, this is a bearish strategy

@12MaxRodriguez 3 жыл бұрын

@@BradFinn Hes saying this. Your cost basis is $10, you sell a .10 premium to bring your cost basis to $9.90. If the stock drops to $9 for example, you now have lost the premium and $90. Selling the covered call locks in your shares and makes it harder to close out if the stock tanks. It would take a lot of premiums to make up for it

@Eastbaypisces Жыл бұрын

@@thomasd5488 right so if it drops to $6 and u bought for 9 and strike is 10 u just keep premium and write another call right?? its only a loss if u sell the stock right??

@Eastbaypisces Жыл бұрын

@@thomasd5488 yea gotcha

@Eastbaypisces Жыл бұрын

@@thomasd5488 yea I ve rolled before

@MarcusAlbright 3 жыл бұрын

Awesome video. Very understandable and gives great information. Answers some questions I've had about options.

@BradFinn 3 жыл бұрын

Glad it was helpful!

@michael2408 3 жыл бұрын

BEST VIDEO ON SELLING COVERED CALLS!!!! Lol, I just sent an email to you on every question i had and you answered everything in this video..... EVERYTHING!!! Dang!!! Disregard my other comment on a different video, I’ve watched 10 or more of your videos in 2 days, I have no idea why or how I missed this one (I would have saved myself some time, lol 😂... you are educating ALOT of people 👍👍👍🙏🙏🙏🙏) Thanks again Brad!!! Go MICHIGAN 👍🇺🇸

@BradFinn 3 жыл бұрын

Thank you so much for the kind words Michael. Cheers!

@jetah50 3 жыл бұрын

i'm curious how the option went. it's Feb 13, an update video on this would be pretty sweet.

@BradFinn 3 жыл бұрын

It expires worthless. I kept my $68 bucks. And repeated it for another $75. I update ALL my investment transactions inside my discord. I very rarely do update videos.

@krismmm1704 3 жыл бұрын

@@BradFinn Hey Brad, I have a question. Why is it bad if you get assigned? You get your initial investment back and the capital gain and the premium? Am I getting something wrong? Thanks

@itsZmat 3 жыл бұрын

@@krismmm1704 It's not bad but this of it as selling something and having the price drive higher, just not profiting as much as you could and more mental than actually bad

@krismmm1704 3 жыл бұрын

@@itsZmat Yes, but you're still guaranteed the premium and a lot of stocks have some pretty high premiums for only a week out with a strike price very close to the share price. I don't get it, it just seems too good to be true. You can just buy the stock, make $100-$200 in premium and sell it at the strike price a week later and repeat with the same stock or another stock.

@itsZmat 3 жыл бұрын

@@krismmm1704 Yeah that's why he says to not be married to a stock so that even when it's assigned it's still not a bad thing. I should clarify that I agree with you, I was just trying to explain the possible "con" in this situation

@imhiLARRYous 3 жыл бұрын

I sold 9 3.5 AMC calls and felt like $ROPEing hard when it ran to 20+ 🥲

@BradFinn 3 жыл бұрын

ccol

@MrLeejm923 3 жыл бұрын

Thanks for the great videos. Nee to options. Why didnt you go higher in strike price, say 28 with lower delta? Or even higher?

@BradFinn 3 жыл бұрын

Personal preference

@rrrrrr12rr 3 жыл бұрын

Thanks, Brad, for the video. Recently I sell four covered calls of CCIV(exp 3/12), on the date of expiry(which is today), the stock price was greater than the strike price ..I was expecting someone would exercise the contract, but unfortunately, Robinhood sent me the message, " we have placed an order to buy to close 4 contracts of cciv". What do you think could have happened here?

@asia-88 3 жыл бұрын

found this by accident, love the way Brad explained cc, subscribed right away! Thank you Brad !

@BradFinn 3 жыл бұрын

Thank you so much for the kind words

@QuesttoFIRE 3 жыл бұрын

Super helpful, Brad. I’ve been wanting to try options, but as a long time index investor, it still makes me nervous.😅 One day I’ll do it.... I’d love a walk through on fidelity if you use them.

@BradFinn 3 жыл бұрын

Thank you so much Rebecca. Trust me you know, I’ve been there. Let me know when you’re ready I’ll definitely help you out

@BrianNaidus 3 жыл бұрын

Good video! I love your take at 16:00, doesn't matter the premium, even if it's a few dollars profit, stick to your plan!

@BradFinn 3 жыл бұрын

Thank you

@Trademan_24-7 11 ай бұрын

no words can express my grattiude for your tapes. sorry typos if any, am shaking with the raw power oif knowlege you have gifted this humble mortal.

@BradFinn 11 ай бұрын

Thank you so much

@pablopmp5096 Жыл бұрын

EXCELLENT presentation. Thank you for sharing your knowledge and experience

@BradFinn Жыл бұрын

Thank you

@baoshenyi 3 жыл бұрын

Great video, expiration date less than 45 days, could you please explain it with an example? Could I sell covered call expiration date is 2 days later? Also I found my sell price is 0.37 cents but it still show me daily loss and gain, why? Sorry to ask so many questions. Thanks again!

@Olive_Whale Жыл бұрын

Best CC video I have come across! Thank you!

@BradFinn Жыл бұрын

Wow, thank you!

@robertbarnard4661 2 жыл бұрын

I really like your videos and I've learned a lot from them. I sold my first covered call and made a little scratch from the sweat of someone else's brow. I am taking this into retirement as my retired gig.

@BradFinn 2 жыл бұрын

Nice.. good luck!

@patrickgriffin8628 3 жыл бұрын

Another great video Brad! Do you ever sell cash secured puts or do you primarily just sell covered calls?

@BradFinn 3 жыл бұрын

There is a time and place for CSP’s Patrick. Primarily if I think the value of the share price is a little high. Because it does tie up so much in cash collateral, I don’t do it often

@persieprince9345 3 жыл бұрын

You are a legend first time i did understand this ,video saved I must thanking you Just one question for example i have t and the stock go down hard not hitting the strike price in this case i lose the 100 shares or they still mine after all

@BradFinn 3 жыл бұрын

Thank you so much

@craigwhitney8170 3 жыл бұрын

Appreciate your videos!! I guess the only thing that is a little confusing to me is how to do this consistently for any type of real income... For instance in your example you are putting 100 shares in "limbo" for some time until expiration. Yes you can do it again once the option has expired, but locking up in this example over $2350 in the form of shares for 30-45 days as you say to collect $68 in this example in an annual basis would be something in the neighborhood of $800 (if you got out every 30 days) (minus 20ish percent in taxation) or $640 net or roughly 27% gain over a years time. The other thing that confuses me some is how are you maintaining your "cost basis"? If I have AT&T bought at $28 and I do this at a $30 strike and the price goes down to $26 that's fine...I do it again however and to get over my cost basis of $28 I don't make any money on writing the call, or not "as much"...if that trend continues it won't be long before your cost basis can no longer be a factor in the option determination or else there will be no opportunity to sell it...

@thegalaxygod6683 3 жыл бұрын

Question. So 2 questions. 1 if you have 2 leap contracts, can you sell 2 weekly covered calls against them, or is it just 1 per week? 2 If you buy to close and you're out of the contract(because your premium started at $75 and was now at $4 3 days later), can you sell another covered call that same week??

@shmodzilla 3 жыл бұрын

Thanks for explaining the delta thing as well. I didnt know when i dd my first ones this morning but thats ok as im perfectly happy to sell the contract as more gain.

@shmodzilla 3 жыл бұрын

These ones at least

@danf5081 3 жыл бұрын

Great video. Thanks for sharing. What type of returns should I expect running this strategy? Looking to use it to supplement my income. Thx!

@BradFinn 3 жыл бұрын

Too many factors. Pre Tax I do about 8- 10% per month using the wheel.

@coreytaylor1673 3 жыл бұрын

Really good explanation. I will definitely be recommending this video to some friends who have been asking me about options. I'm a horrible teacher.👍

@BradFinn 3 жыл бұрын

Awesome, thank you!

@sukojvlog1194 3 жыл бұрын

Very informative video , I’m a newbie to the sell covered call but I do understand all your points! Things I learned Price above the based price in your portfolio Check the delta below .3 is good the good one

@BradFinn 3 жыл бұрын

Cheers. Good luck

@DennisRay99 3 жыл бұрын

Correct. Best of luck.🙏

@C00ltronix 2 жыл бұрын

Amazing! First finance related video I see where the comment section is not full of SPAM bots and their shills. Thanks for keeping your page clean!

@BradFinn 2 жыл бұрын

A ton of work. But I owe it to you. Only positivity and encouragement here

@pattyelsberry7654 2 жыл бұрын

Brad, THANK YOU so very much for such a detailed tutorial about this topic. I want to learn how this strategy works following a steady system and your video helped a ton!! May your profits multiply for helping others!

@BradFinn 2 жыл бұрын

You're very welcome!

@jackdfowler 2 жыл бұрын

Thank you so much for your video, however, I got a question. All the greeks move anyways over time in either direction so with that said why didn't you sell the $26 strike to collect more premium, because that delta would move anyways over time but you would still have the premium in any case. All the greeks move over time correct? Even the best number of greeks will move with time. I'm I wrong for thinking this? Thanks.

@axelbogelund6700 2 жыл бұрын

Thank you for this video. Very clear and helpful. A quick question regarding selling covered calls or puts when market is going up or down. Is there a rule of thumb or general strategy that is best?

@BradFinn 2 жыл бұрын

No change for me. I don’t care really if the market is up or down. Don’t really change the wheel too much

@kmeter2004 3 жыл бұрын

Hi Brad, love your videos...they are helpful! What are the stocks that good for selling covered calls? Can you share them here? Thanks

@BradFinn 3 жыл бұрын

They’re all wonderful. got to pick the ones that work for you

@polly614 2 жыл бұрын

Hello Brad! Great overview indeed. Thank you so much for this video. I am not understanding why we would have to choose between. 30 to 45 days. I have not started this strategy yet but I am looking at doing this for stocks that I am down in. I am not married to the stock and if I get assigned over my cost price I am ok. Today is Oct 7 and I want to buy covered call that expires Oct 15. What is the Con in that?

@aminlakhani8350 2 жыл бұрын

imo, you go out 30 - 45 days for better premium. If you're just wishing to go over your cost and choose a strike, there should be no harm choosing a shorter timeline. Premium of course, would be less with a shorter timeline.