Own shares that are going nowhere? This lesson shows how to get paid while you wait, and exactly what you give up for that income.
After this lesson you can
- Work out a covered call's best case, breakeven and downside before you place it
- Choose a strike by the price you'd be happy to sell at, not by the size of the premium
- Compare expirations by what they pay per day, not just in total
- Understand assignment, and why being called away early tends to happen around dividends
- Avoid the five mistakes that turn "extra income" into a bad sale
Chapters
- 0:00Paid to wait
- 1:50What covered means
- 3:29What it pays at expiration
- 5:32Choosing the strike
- 7:19Choosing the expiration
- 9:03Getting called away
- 10:51Managing the trade
- 13:00Five mistakes
- 14:44The whole lesson on one screen
Practice in the game: Level 9 · The Landlord
Practice with:Income Screener