Updated in-place, see https://www.elitetrader.com/et/thre...out-covered-call-trading.368160/#post-5627880
Bro... learn how options work. 1 option is the right to buy or sell 100 stock. The ratio is 100 stock to 1 option. So qty for stock = 100, qty for option = 1
Hey nooby_mcnoob, you seem to be an ignorant of facts, b/c the qty in the posted tool works differently. Qty here means qty, not contracts for options. I have to put you into my ignore list b/c of your ignorance of facts. Bye-bye!
The text is referring to the options not the overall position. Covered call is same pl profile as short put
True but unrelated to the original post. Schwab's wording is incorrect. No need to dance around it if you are trying to answer the OP,
It is a waste time trying to convince greedy covered option writers, who suffer major losses when the underlying stock makes a large change in direction.
You were missing the final sentence, I will add it for you below: REEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE
Nonsense. Schwab's is clearly that it is talking about the value of the OPTIONS. Of course the value of the stock covering the call goes down when its price goes down, but the text clearly states the option not the position. I advise that you stay away from options.