SELL COVERED CALLS WITHOUT 100 SHARES OF STOCK (POOR MANS COVERED CALL) EP. 18

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SELL COVERED CALLS WITHOUT 100 SHARES OF STOCK (POOR MANS COVERED CALL) EP. 18

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Күн бұрын

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Let's take a look at the poor mans covered call. In this video I talk about how you can closely mimic selling a covered call without actually having 100 shares of the underlying stock on Robinhood. This is called the poor mans call, or the poor mans covered call, where you buy a very deep in the money call (with delta as close to 1) expiring a month or two away, and sell a call (usually weekly) and this requires less capital on Robinhood.
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@TechConversations Ай бұрын

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@UrmomdotcomYT 3 жыл бұрын

18 YEAR OLD SENIOR IN HS WHO GOT FURLOUGHED IN MARCH I REALLY APPRECIATE THESE VIDS MAN

@TechConversations 3 жыл бұрын

Glad you enjoy them!

@Mr.McHouston 10 ай бұрын

This is the best video I found explaining the poor man’s covered call Thank you.

@quentinAxe 3 жыл бұрын

There needs to be a class on stocks in school, like why have some unneeded classes like ancient world history when you can learn stocks, and what would be fun is it would be an elective where you need around 100$ and they teach you how to invest and you do your research and do your investments and then learn the risks/potential in stocks as your classmates make/lose money

@Andrew-bb6it 3 жыл бұрын

Rainititan@gmail.com)

@wheresBound 3 жыл бұрын

@@Andrew-bb6it scam

@Andrew-bb6it 3 жыл бұрын

@@wheresBound 🥺🥺🥺

@sathwikdoddi6602 3 жыл бұрын

@@wheresBound fax

@dreamlotus6086 3 жыл бұрын

Or everyone who trades should teach the children in their mist.

@luojayson531 3 жыл бұрын

Valid strategy. However, this is simply a debit calendar call spread. You'd better sell enough calls in the front month to cover the loss of time premium in the latter month as time passes. It is best to apply if you believe the stock is not exceeding a certain price in the short term (so your sold near-term call makes money), and will go up in the long term (so your long-term bought call makes money).

@lj4001 2 жыл бұрын

Isn’t this also a Short buyback but in reverse?

@SolidworksUnlimited 3 жыл бұрын

I learned this by accident lol

@NeppV 3 жыл бұрын

buy leaps 3 to 6 months out and sell weekly calls on the same stock. too easy. Especially on SPY can do 3 days Mon Wed and Friday $100 each time $300 weekly. Good luck have fun

@ricardocortez2610 3 жыл бұрын

What happens of your get assigned tho or the stock reaches your strike. Now u owe 100 shares. What do u do ? Sell the leap or what happens ?

@Adrian-np2en 3 жыл бұрын

@@ricardocortez2610 Correct, that's why you want a delta close to 1. The leap will hold it's value and you sell it to cover the assignment you sold.

@christopherjasso 3 жыл бұрын

Can u point me to a tutorial on how to do these leaps? I do iron condors, put credit spreads, and calls. But I'm very interested in leaps, 🙌👍

@garretttrickey3630 3 жыл бұрын

omg...what the fuck have I been doing this whole time?.. buying calls and just praying that the stock goes up, all the while losing money when I guess wrong is what.... this is a game changer...

@Andrew-bb6it 3 жыл бұрын

Greetings ,I live here in Texas, I Just started trading last week, I am a beginner I never believed I’ll make upto $18,000 in just 1 week from trading but when I met Mr Raini he guided me for free with his strategy and he guides me with the exact time frame to trade and now I just received my first withdrawals $18k in my bank account today I’m very happy I recommend you contact him.,he is very honest and trustworthy he will guide you to make consistent profits

@Andrew-bb6it 3 жыл бұрын

Rainititan@gmail.com))

@johnmiller3139 3 жыл бұрын

So what happens if someone buys your call you dont havd the 100 shares to give

@Bluegreen-fc4bc 3 жыл бұрын

Thanks for making this, Guillermo!

@TechConversations 3 жыл бұрын

Thanks for watching!

@amoney1421 2 жыл бұрын

you need to go out way further than 2 months for a safer version of this play, most people suggest buying leaps to do a pmcc on

@alial-smadi8796 3 жыл бұрын

I feel like I am missing something. I tried it on a cheap stock and bought a pretty far out call deep in the money and it still says "not enough shares" when I try to sell a call.

@StockByte 3 жыл бұрын

Which brokerage did you try it on and do you have the level 3 options trading allowed?

@farishourani1236 3 жыл бұрын

This happens to me too! I’m using robinhood btw

@aidanshay4894 3 жыл бұрын

@@farishourani1236 you need to sell the call with the LEAP inside of a spread not seperate

@bobtheatheist63 3 жыл бұрын

@@aidanshay4894 So you need to be at level 3 to do that?

@CP-wt7jf 3 жыл бұрын

What am I missing with this PMCC strategy? Why should I spend over $700 for a maximum return of less that $200. This doesn't seem to make sense to me unless it is ~$200×100 (shares)

@Andrew-bb6it 3 жыл бұрын

Rainititan@gmail.com)

@christopherhall4270 3 жыл бұрын

You can sell multiple calls and you get to keep the long call

@oathkeeper87 3 жыл бұрын

How to close the short call before expiration or roll over the short call next expiration date?

@michaelbiasatti5016 2 ай бұрын

If the stock price goes above the strike price on your option gets called away, how do you satisfy that requirement? You don't own any shares, the option you bought that was deep in the money can't be exercised since the price is far above that strike so I don't understand how you provide the 100 shares that go above $14.

@kapilvallamkonda2965 3 жыл бұрын

Instead of buying long call for $743 isn’t it cheaper to buy 100 stocks using margin for around $630? Especially with low interests rate in Robinhood.

@Andrew-bb6it 3 жыл бұрын

Rainititan@gmail.com))

@marcrosenblatt1085 3 жыл бұрын

Why not buy a LEAPS and sell against it monthly rather than just 2 months out?

@moneycore2423 3 жыл бұрын

That's a great strategy if you are bullish long term.

@nivar6685 3 жыл бұрын

What is a LEAPS?

@jacksonmoore26 3 жыл бұрын

@@nivar6685 an option that has a long time until expiration

@Dezdamoonbear 3 жыл бұрын

It's called POOR MAN'S for a reason. Leaps are usually expensive.

@bluesky5587 3 жыл бұрын

So what happens if strike price breached and shares called away ...is the pm cc still equal to the 100 shares called away or is the idea of this strategy never to get called away as you do not really have a proper 100 shares? Thank u all

@Andrew-bb6it 3 жыл бұрын

Rainititan@gmail.com))

@bluesky5587 3 жыл бұрын

@@Andrew-bb6it go away

@TheCarfanatico 3 жыл бұрын

Wow wish I saw this earlier. Picked some god awful calls, but money I was willing to risk thanks a lot.

@Andrew-bb6it 3 жыл бұрын

Hi Greetings ,I live here in Texas, I Just started trading last week, I am a beginner I never believed I’ll make upto $18,000 in just 1 week from trading but when I met Mr Raini he guided me for free with his strategy and he guides me with the exact time frame to trade and now I just received my first withdrawals $18k in my bank account today I’m very happy I recommend you contact him.,he is very honest and trustworthy he will guide you to make consistent profits

@Andrew-bb6it 3 жыл бұрын

Rainititan@gmail.com)

@justing2836 3 жыл бұрын

That’s called a call credit spread

@gilev3230 3 жыл бұрын

Yep totally a spread. A CC involves options and shares.

@Dezdamoonbear 3 жыл бұрын

It was a calendar DEBIT spread not credit

@dogfacedponysoldier87 3 жыл бұрын

Sounds convoluted .

@markschellhammer4663 3 жыл бұрын

Thank you for stating the name of the strategy at the beginning of the video.

@deficator750 Жыл бұрын

if u lose the max loss on pmcc its real loss of money. whereas max loss in a cc is simply you selling your shares at a profit

@xiaoliyang-pk8tv 3 жыл бұрын

hi,teacher,in the caculator,it tells you the profit when you move the mouse there,but what doesn't the number mean in the table?why it doesn't show the profit there directly??? thank you.

@InvestingSalas 3 жыл бұрын

Great description! Nice video

@ROFEL 3 жыл бұрын

What if your short sell option gets ITM and exercised way before expiration for whatever reason (ex- dividend date)... Then you have to exercise the long call and lose all that theta you paid right?

@Andrew-bb6it 3 жыл бұрын

Rainititan@gmail.com)

@moneycore2423 3 жыл бұрын

I like doing cash-secured puts. However, I am going to look at this covered call strategy. Thanks for the info!

@jkk20 3 жыл бұрын

this isnt a covered call strat. covered calls are riskless by nature... get exercised??? its ok,you allready owned the shares. if you chose a out of the money strike you proffit from both premium + capital gain. that's why covered calls are simple and straightforward. but you need to own 100 shares per call you sell.

@JKC112 3 жыл бұрын

@@jkk20 I’m confused on this part. If your covered calls hit strike price or over, doesn’t that mean your 100 shares are gone? And the price for the 100 shares you purchased cost more than what you will get( premium + stock appreciation)? So that’s a big risk or loss right?

@gabrielzarzuela7735 3 жыл бұрын

@@JKC112 its a loss but also it isnt, thats why its risky. Its a loss because like you said, if the stock price goes beyong the strike price, you lose the opportunity to gain more money than what you got, but at the same time it isnt a loss because you made the equivalent of the prime price and you gain "main" money because the stock did increase and you own 100 of them. This is why you only do this on stocks from which you dont mind selling them, because you're at risk of stopping yourself of gaining more money. The strategy is to choose a strike price from which you are sure that it'll never reach. This way, you keep your 100 shares and you gain a prime price and maybe even some "main" money. Here's an example : Goo ending : Stock price is 100 (meaning you NEED 100 shares, so 10,000dlls) strike price is 150 with a prime price of 2.77 (277dlls). At the expiration date, stock raised to 145, this is considered expired since it never reached 150. You keep your 100 shares (10,000) but you made 277dlls prime price BUT ALSO, the stock price when up by 45dlls x 100 shares (4,500dlls) making a total gain of 4,777 dlls. You would restart the process and so on and on. Bad Ending : Stock price of 100 raised to 190. In thise case you are FORCED to sell your 100 shares at the value of the strike price which is 150, meaning you GAIN 5,277dlls BUT LOST THE CHANCE of gaining 3,723 dlls of profit. All though the strike price is this ending is higher than the stock price of the good ending, so you did made 500 extra money. Hope i explained the strategy with selling calls. And please anybody correct me if im wrong, we're all learning.

@JKC112 3 жыл бұрын

@@gabrielzarzuela7735 thanks 🙏

@bobbywest6530 3 жыл бұрын

@@gabrielzarzuela7735 best explanation yet now I completely understand thanks

@corywilliams5828 3 жыл бұрын

What happens to your long call if the stock goes above the strike of the sold call? And you can keep doing this weekly correct?

@2134steven 3 жыл бұрын

I think you mean goes under the strike price so the the sold call expires worthless....I also wonder about this, I guess I will find out....does the buy call remain after the expiration of the sell call or does the platform close the whole spread, does the platform consider this a custom weekly spread?

@corywilliams5828 3 жыл бұрын

redman halfbreed I know if it’s under the sold strike price it just expires worthless and you can just keep selling calls as you wish. I’m curious as to what happens to the long call if the stock is above the strike of the sold call, do you just lose the long call? Idk

@2134steven 3 жыл бұрын

@@corywilliams5828 OH, sorry........I would think the options clearing house would just do an early exercise of your buy call to cover the spread, though I am not the pro, I haven't tried this yet, though I think I will experiment with it

@jnb1116 3 жыл бұрын

@@2134steven did you guys try it? What happend if it went pass the strike on expiration? @Cory Williams

@2134steven 3 жыл бұрын

@@jnb1116 yeah, this works pretty well, if your stock price ends up meeting your sold call strike price then it does exercise both call options, but if it doesn't you are free to sell calls week after week until your bought call expires, either way you usually make money, this just gives you more time for your stock to reach your target price before cashing out. All in all a good way to sell covered calls without tying up too much money in the trade

@davidcodd3398 19 күн бұрын

Thanx, whats the 5 dollers for ?

@AdamFlips 3 жыл бұрын

This is basically debit spread. You can lose all your money by expiration. How is this even considered covered calls. Covered calls are simple and safe.

@matthewfalcon3021 3 жыл бұрын

SO this is an awful idea then right??

@jkk20 3 жыл бұрын

@@matthewfalcon3021 the person who made the video does not understand what a covered call is,thus do not follow any financial advice from him.

@ronalddang 3 жыл бұрын

That’s why the long option has to be a leap option and really far in the money.

@willofgod4191 3 жыл бұрын

yeah this isn't a poor man's covered call lol

@allengreen7483 2 жыл бұрын

You said the only downside you could think of was: if the stock goes down, you could lose money you invested in the bought call. That's a big potential downside, BTW. How about if the stock price goes up too high and your sold call gets called? Then you still have to come up with the money to cover those 100 shares right? The cash required to exercise the long call to get the 100 shares to cover, added to the initial cost of that long call, probably will add up to be pretty close to the amount you would have had to pay to buy the 100 shares in the first place, right? So how is this a way to participate with less money if you have to be prepared to cover with roughly the same money?

@ricardocortez2610 3 жыл бұрын

Thanks nice I will do this with Amazon something more safe

@Andrew-bb6it 3 жыл бұрын

Rainititan@gmail.com)

@Jk-of6md 3 жыл бұрын

sir, on my account it keep saying i have to make separate trade and not going to the custom like yours...what am i doing wrong ?

@TechConversations 2 жыл бұрын

You need level 3 options for more advanced strategies.

@yung_n_icy 3 жыл бұрын

So how would you close this type of setup? Once the earlier expiration date passes would you jus sell the call you bought?

@otpeezy5788 3 жыл бұрын

Or sell another call for the next week

@kevinw543 3 жыл бұрын

@@otpeezy5788 robinhood doesn't let you add another sell call even when you have your buy call :(, i just tried with a long call i have and tried to add a sell call

@johnscarceforpresident1647 3 жыл бұрын

Kevin W you have to use a diagonal spread. So I’m the same order ticket you buy back the short call and roll it over to the next week. That way you are closing one position and reopening it for a later date at the same time

@dannyintokable 3 жыл бұрын

Excellent video, God bless...

@Lyfeastrey 3 жыл бұрын

One more question, because I really like this strategy, would I need the collateral for the long call in case my sold call gets exercised? So in this example, would I need an additional $500 just in case? Are they taking that off the top or is that later if it is exercised? Again thanks.

@TheXLAXLimpLungs 2 жыл бұрын

You pay the debit up front as collateral

@TheXLAXLimpLungs 2 жыл бұрын

This is not financial advice, but my understanding is this. I should clarify. You pay a debit for the contract for the buy to open call up front, say I buy HOOD at $10 for $8.00 a share for end of Feb., I'm paying $800 up front. Then in selling a $18 call a week out Jan 7 at $0.50 for $50, I'll be paying a total of $750 up front. If the sold call exercises, you (or the brokerage) will exercise the in the money call for the 100 shares to cover. So, yes you're buying the 100 and going negative in balance, but it immediately sells them that same weekend for the $18 so you don't stay negative over the weekend. They don't care that you're negative except in one circumstance. It is possible to buy them super close together, a regular spread, and then it looks in the money, the sold call is exercised by the buyer, so your brokerage moves to exercise your in the money bought call to cover it. But then by market close, the price comes down on the stock so the original buyer decides to cancel and not exercise anymore, your brokerage won't know and will still exercise the call you bought. This will make you go negative by a little bit, whatever the difference is between where market price is and where you bought them. But this isn't a worry following how he shows you in the video, unless the stock had a massive controversy and lost 80% of the value in an instant Not impossible, but very very unlikely.

@lj4001 2 жыл бұрын

@@TheXLAXLimpLungs this is an excellent explanation, thank you for that! Now would this work for a Put as well? And would a Vertical strategy work for either Call or Put on Webull, seeing as they don’t have custom legs like RH?

@lj4001 2 жыл бұрын

So wait I’m realizing you are explaining a Calendar spread, but those are set to the same price, only Vertical spread are Two strike prices, with the second Leg higher?.. please clarify further if am I mistaken.

@gamerguy9183 3 жыл бұрын

What if someone does not buy your call options after you close the trade?

@Andrew-bb6it 3 жыл бұрын

Rainititan@gmail.com))

@kelc2 3 жыл бұрын

Watch my scuba diving video in the florida keys catching lobsters close encounter with grouper and hogfish

@TechConversations 3 жыл бұрын

Will do!

@tienzomby93 3 жыл бұрын

so what happen after you get that premium after oct 2nd. you sell have the leap call. can you still sell another call

@MortgageExpert4U 3 жыл бұрын

Good explanation. Thank you!

@Purpleporkypine 3 жыл бұрын

Can I just buy a lot of cheap calls way out of the money that expire 4-6 months out and then just sell weekly calls?

@DeeDee-qo4bc 3 жыл бұрын

Great question! He called this poor man's covered calls. Seems would need at least $730 to get into the trade, with a possibility of losing that or worse $1,200+. Fucking this up can easily turn anyone into poor man very quickly lol

@danferritto1 3 жыл бұрын

Excellent video. Very well explained.

@BeegzBomb 3 жыл бұрын

On platforms like robinhood and TD do you need to do anything after setting up the spread? Or does it resolve naturally on it's own (you dont need to sell or exercise an option)

@marcomedina7528 2 жыл бұрын

I believe you close multi leg strategies never let them expire. Only ones you should ever feel comfortable letting expire should be short puts and short calls depending on the stock

@scoutslookout 3 жыл бұрын

How do you sell a call for the next week once your first sell call expires that week? A couple people in your comments who tried said Robinhood won’t let them sell additional calls the following week. Do you buy back a position to roll it over the next week?

@kapilvallamkonda2965 3 жыл бұрын

Once it expires you won’t see any short call on your portfolio. You can then sell new weekly call against your long call option.

@FatbobRell 3 жыл бұрын

@@kapilvallamkonda2965 how do we sell that new call the next week? Is it the same as if you owned the 100 shares or is it a different processs

@kapilvallamkonda2965 3 жыл бұрын

@@FatbobRell yes since you still own 100 shares, you’d just sell new call.

@FatbobRell 3 жыл бұрын

@@kapilvallamkonda2965 so I can sell weekly options and let them expire out of the money against my long option? Got it. Thank you!

@kapilvallamkonda2965 3 жыл бұрын

@@FatbobRell that’s correct.

@frankiehellsing5816 2 жыл бұрын

Tesla is the best for doing this.buy 1 or 2 contracts that expire in 2-3 months and sell short calls weekly, you will make money on the long call and the short calls. You could probably make 1.5k-2.5k a week easily

@PhanOT11 2 жыл бұрын

How to do PMCC on Webull? I don't see anyone explaining on WeBull, its charts/options chain is very different.

@hvacguy11 2 жыл бұрын

Amazing!! Very good video. What if you get assigned though

@jegm1118 Жыл бұрын

What level does your account need to be to be able to make this transaction? I’m at level 2 and I can’t do it.

@joenguyenps 2 жыл бұрын

I kinda vaguely understood it. So if the sold calls expired on Oct 2nd, what happen to your bought call? Sorry I'm kinda new

@eamonterey2429 2 жыл бұрын

Awesome video. How do I close a PMCC on Robinhood? Happy Holidays

@waltermercado9152 3 жыл бұрын

What happens if you let your short call expire itm?

@chrisstovic1925 2 жыл бұрын

Very good presentation.Since I am very new if you have other videos that can get me started I would love to watch them For two months I tried trading option and every one of them I made wrong entry. I was ready to quite. I did watch some other videos with no luck. I need to know How to enter a positions correctly like the one I just watch. Thank you.

@ericbland2 2 жыл бұрын

why you you want the stock price to go up if youre SELLING a call? dont you want it to drop?

@lkjhgtu 3 жыл бұрын

Aren't you forced to sell your shares at 14 strike when the stock goes up more than 14? At that point you dont have the shares to sell what happens then?

@TechConversations 3 жыл бұрын

That's why you buy the call, because that let's you buy 100 shares at that strike ($5 In this example) and then you are selling them at $14.

@DrZona19 3 жыл бұрын

@@TechConversations is this why you buy the call for a later date instead of the same day? It's essentially a call debit spread, but since you changed the dates you're paying a higher debit (taking a higher risk), with a pay off of making more at the sale (higher reward)? Does robinhood execute your buy option automatically once your sell call gets executed?

@2134steven 3 жыл бұрын

@@DrZona19 I am guessing but I would think what would happen is that the options trading house would just automatically do an early exercise of your $5 call option at this point.... looks interesting to try, I want to experiment with this some.....does it work with puts and custom put credit spreads I wonder?

@atimtg 3 жыл бұрын

@@DrZona19 Be careful with this because you have to exercise your call or RH will close your sold call for you since you don't have the shares. Lots of talking points missing in this video.

@johnscarceforpresident1647 3 жыл бұрын

atimtg the $5 long call is to cover up for the potential losses of the $14 short call. You will be buying the 100 shares at $5, that is the long call. Then you will be selling the 100shares at $14, the short call. And you pay $700something to do that, resulting in a gain of just over $100. Guillermo covered all the talking points in this video

@koonerd321 3 жыл бұрын

Watch all ur videos brotha Can you make a video of how to close a covered call and a sold put

@TechConversations 3 жыл бұрын

Of course thank you!

@northwestrider369 3 жыл бұрын

You just buy them back. Some brokers use the term “buy” and some use “close”. But either way, if you sell. XYZ company $10 put/call. To get out of it you just Buy XYZ $10 put/call

@zalphero618 3 жыл бұрын

Interesting. I wonder if you would need to close the far out call when the sell covered call expires or you just let it expire to get premium.

@fungdark8270 3 жыл бұрын

If your short call is assigned your long call is closed automatically in this case, if I understand correctly

@Dreadpiratetrucker 3 жыл бұрын

I was wondering the same thing. What if the short call gets assigned. Never seen anyone mention that scenario when discussing pmcc

@Dreadpiratetrucker 3 жыл бұрын

@@fungdark8270 I wonder if you get the difference between the two? I have one now on SOFI thats far out. I could be selling short term calls on it. But, what if one gets assigned?

@william18miller 3 жыл бұрын

@@Dreadpiratetrucker your long call gets exercised automatically by the broker to cover the short call and you are out of both positions

@kylegodsey7573 2 жыл бұрын

@@william18miller correct!

@nateschultz794 3 жыл бұрын

How do you get around theta decay on your ITM call/put?

@kikook222 3 жыл бұрын

You buy a ITM call with extrinsic value that's less than the premium of the call you sell. Ex. If you buy an ITM call and 100 dollars is extrinsic value, then you need to make sure the premium you get when selling a call against it is more than 100 dollars. You want to find a call where most of its value is intrinsic so it doesn't lose much value over time.

@lj4001 2 жыл бұрын

How do you do this in Webull, what options strategy do we use? Tried Cover-calls deep ITM n far off date to no avail!😒

@lj4001 2 жыл бұрын

I’m guessing it’s a vertical bc Webull don’t allow custom legs.. Like you mention, you’d want to do this if you believe the stock is going Up, wait for the UpTrend (the trend is your friend) Question: if it’s going down then would you do a Sell/Buy Put or a Buy/Sell Put with the higher strike in the second leg?

@Danyrodriguez115 3 жыл бұрын

Interesting. Not to long ago I made a call on Ford for 10$ and I sold when the stock went up and I earn 125$ profit. I don’t know how but I guess you buy a call low and sell it when it’s high? At least that’s what I think.

@bundles3226 3 жыл бұрын

So you bought a call an wen the stock went up you jus sold the call you purchase for profit correct ? You never bought the full 100 shares ?

@Danyrodriguez115 3 жыл бұрын

@@bundles3226 yea pretty much that’s what I did. I don’t have 100 share of Ford. I bought a call when the stock was low.

@juancming8451 3 жыл бұрын

Why did you select the 8-14.5 to graph the exercise? I would like to know

@johnscarceforpresident1647 3 жыл бұрын

I think it was just to get the scope of what was happening close up without getting too zoomed in

@itzpow8310 3 жыл бұрын

Must you let your "Short" call expire? Can you close it out before assignment?

@TechConversations 3 жыл бұрын

You can close out before expiration

@itzpow8310 3 жыл бұрын

@@TechConversations thank you for the quick reply. Also, how do you rollover a long call? Is it as simple as buying another long call option with the same strike just further out on the expiration date?

@siddanthrai8780 3 жыл бұрын

Instead you can do a short call credit spread!

@koyomo2910 3 жыл бұрын

Another great video. My question is the $5 Call 11/20 . The volume is 0 and the Open Interest is 416. The likelihood of getting filled it little to none. How do you manage the liquidity of the $5 Call 11/20. Thanks.

@johnscarceforpresident1647 3 жыл бұрын

Mainly set a limit price to buy very high where it will be filled near “market price”. Since there is usually an ask for every option on the market, the only option is the ask price for buying and the bid for selling. If you have a different broker they may let you buy the covered call at market price

@trevorbanks4136 2 жыл бұрын

How do you roll the short strike individually?

@elymanic3497 3 жыл бұрын

I'm a level 3 options and have a long call for 2023 but it won't let me sell short calls 1 month out? Can you help

@jkk20 3 жыл бұрын

it aint a covered call if you do not own 100 shares...

@TheSublimeLifestyle 3 жыл бұрын

Gonna fuck a lot of people up convincing them that a “covered” call is made with under 100 shares.

@Mejokegamble 3 жыл бұрын

Puts to calls will cause whiplash.

@nfekeskxnxngntnrkdkcn627 3 жыл бұрын

So can I do this if I already own enough shares to buy 2-3 options?

@ediblefubreez_7139 3 жыл бұрын

If you own the shares it’s just a covered call big dog

@faisalraj6654 3 жыл бұрын

IN PMCC, what happens if stock shoots up past $14 sell call strike and i am forced to deliver 100 shares? Will broker see my 'In The Money $5 buy call' as collateral and close automatically for me having a profit of the difference between breakeven and $14 strike?

@FalgunPatel1 Ай бұрын

i wonder same

@WeAreCryptoStock 7 ай бұрын

On level 2 Robinhood can you do this strateg?

@TavinhoGodoy Жыл бұрын

Can that be done on webull???

@wferguson05 3 жыл бұрын

Okay, do you have to renew both sides each week or only the one that expires? Say I buy an Apple leap a year out, can I sell weekly calls or would I have to do both all over again each week?

@johnscarceforpresident1647 3 жыл бұрын

You can hold on to the long leap for the whole year. Just roll the short call every week by buying it back and selling one for the next week (in the same order ticket) Guillermo has a video about how to roll options you should check it out

@Romero19 Жыл бұрын

Can this work with a Cash account on webull

@matthewfalcon3021 3 жыл бұрын

So here were risking 700 to make 100?

@fortyinch 3 жыл бұрын

Do this actually work? I mean, is it profitable? 🤔

@Qualiall1 3 жыл бұрын

Is there any reason one would mess with the "Good for Day" or "Good until cancelled" option in RH?

@johnscarceforpresident1647 3 жыл бұрын

Yes. If you want your order filled at a specific price then it may not be filled that same day. That is where GTC comes in since it is valid for 60 days on the market. Good for day cancels the order if it wasn’t filled before market close

@cl8403 3 жыл бұрын

Yeah setting stop losses

@SuperBatong 3 жыл бұрын

What's the difference between this strategy and a Call Debit Spread ?

@chrisgallon3037 3 жыл бұрын

Doesn't seem to be a difference, at least to me

@2134steven 3 жыл бұрын

your putting up less collateral for the same possible profit, but in my opinion taking on a slightly higher risk

@johnscarceforpresident1647 3 жыл бұрын

It’s the exact same thing

@Ivanesteva90 3 жыл бұрын

Thanks for share

@TechConversations 3 жыл бұрын

Thanks for watching!

@stew121680 3 жыл бұрын

You probably want to pick a stock with low implied volatility

@theapotheosisofgdot2294 3 жыл бұрын

Are we trying to buy almost out of reach on both contracts?...

@bimal10p 3 жыл бұрын

I have a question on timestamp 2.53. When you're trying to create a cash covered call, what is the relevance of the limit price? In the screen it says .32-.33 however the field is editable. Can someone please explain? What happens if I put a value other than in the range, how does it affect the premium?

@FatbobRell 3 жыл бұрын

It changes the premium amount but not guaranteed to get executed

@lj4001 2 жыл бұрын

@@FatbobRell I believe you are right, it would get executed faster if within the range as it’s between the Ask n Bid price. If you want it a sure thing is to input at Ask or 1cent above it *not financial advisor nor am I an options trader but that generally what I hear n use for normal stock trades.

@votf6580 2 жыл бұрын

So what if I buy 100 shares then sell the contract 🤔

@samex892 3 жыл бұрын

How can we do this in webull ?

@BTZTT 3 жыл бұрын

diagonal calendar spread, its a spread.

@willydigital941 3 жыл бұрын

Please I have difficulties in placing option trade

@TechConversations 3 жыл бұрын

What's happening?

@dlbkmb7231 Жыл бұрын

Are you kidding me? The premium on that sold call is only 2% of the long call position. Obviously there’s better examples than this for a PMCC……

@Miramar2024 3 жыл бұрын

I think is better to do a call debit spread and risk less also win more then one your just did. Pls correct me if iam wrong

@johnscarceforpresident1647 3 жыл бұрын

This is a call debit spread. But the width of the “poor man’s covered call” is way higher than a typical spread so it doesn’t seem like one even tho it is a regular bull debit spread.

@diegod144 3 жыл бұрын

But wouldn’t you lose money when your long call expires?

@celebrityinterviews3691 2 жыл бұрын

excellent

@babycutezz5665 3 жыл бұрын

Can you explain the reason buy call option at a lower strike price $5? I thought buy call always aim at a higher strike price.. I am confused.. Thank You

@johnscarceforpresident1647 3 жыл бұрын

It is just to reduce the cost of the “covered call” by $500. If is to reduce the max loss and increase max %profit

@davidlima1645 3 жыл бұрын

How far out does the leap have to be? Can it be a month out?

@bingregala948 3 жыл бұрын

Did you pay the $743 premium immediately at the $5 Strike price when you submitted the order?

@Dezdamoonbear 3 жыл бұрын

Yes u do

@RiveraLuis808 3 жыл бұрын

Love your content thanks for posting this, I am just having a hard time grasping the concept here if you spend 1229.00 for 100 shares for 1 contract I believe you said in the video but a max return of 188.00 or 183.00 how is this a winner? Do you get your 1229.00 plus the 188??? I'm sorry I am new to the options world and would like to learn a little more. Hope I don't offend anyone in asking this. Thank you for your time.

@kevinorsburn4252 3 жыл бұрын

I believe if you get called out on the option then you get the full $188 and your $1,229 back. If you don't get called out you keep your shares and the premium of $17.

@jacksonmoore26 3 жыл бұрын

Yes the $188 is in addition to the original $1229

@theethans898 3 жыл бұрын

Regular credit spread seems safer ie less risk

@johnscarceforpresident1647 3 жыл бұрын

I agree

@kirbymgod9472 3 жыл бұрын

it seems safe until the broker forgets to exercise and your protective leg expires worthless

@cl8403 3 жыл бұрын

kirby mgod that’s why u close ur contract before market close on expiration date... if u leave ur spread to expire in after hours just to make 1 extra dollar and then get fucked.. it’s 100% your fault.

@luisgarcia-dz5fx 3 жыл бұрын

What is the difference between credit spread and poor man covered caa?

@johnscarceforpresident1647 3 жыл бұрын

luis garcia in a credit spread you short a low strike call and buy a hiegher strike call , the exact opposite of what a poor mans coverd call os

@josephdoddismissiveson1109 2 жыл бұрын

When it says "Order Premium must be less than Collateral" what does that mean

@oghaggins6267 2 жыл бұрын

Ur new order has to be valued less than the collateral you’re providing

@Lyfeastrey 3 жыл бұрын

I do have a question. Can I use the same deep in the money call the following week, or is this a one-off type deal? For instance I by PTON call in Jan 2021 and sell the Oct 9 Call for premium, could I use the same Jan 2021 call and sell the Oct 16 call without buying another Jan 2021 call? Thanks great channel btw.

@buckrogers8858 3 жыл бұрын

Hello is this legal?

@taddmansilla870 3 жыл бұрын

Pay a premium of $745 to buy a $5 call two months out and get $17 premium on a $14 call? I don’t like this example. Don’t do this. In 8 weeks you won’t make enough premium week each week to cover the $745 paid. Yes it is deep in the money so chances are it won’t expire worthless. It would be better if you finish the video by explaining how much it will cost to close that position near that expire date. If I bought $5 call for $745 eight weeks out, with one week remaining when I go to sell that $5 call to close my position and the stock price is still less than $14, what would I get back?

@Andrew-bb6it 3 жыл бұрын

Rainititan@gmail.com)

@taddmansilla870 3 жыл бұрын

@@Andrew-bb6it I don’t believe your statement.

@Mistyfgdf 3 жыл бұрын

My head hurt but considering I make videos and this is another income source I just gotta binge 1000 options video and jump in one day to learn the skill :/ Recommendation from many other youtubers once’s you get in, it becomes simple and easy money... specifically wheel