Covered options strategies

Discussion in 'Options' started by kfir, Mar 26, 2017.

  1. kfir

    kfir

    Which options strategies exists that utilize the covered positions schema? (like covered call)

    Thanks
     
  2. Sell cash covered put option. Checkout CBOE and search sell put to buy stock.
     
  3. Robert Morse

    Robert Morse Sponsor

    The question is very general, so I have to provide a general response. Check out our Option Trading education center. https://www.lightspeed.com/trading-education-center/

    In my opinion, it is better to have a view or expectation of what will or will not happen over a time period, then apply the options strategy that works best to achieve that, with the current option prices and your risk comfort level in mind.

    Bob
     
  4. kfir

    kfir

    The covered call, covered ratio spread, covered strangle, and some interesting plays with collars are all methods that interest me a lot.

    Thanks for the website will look if they have some more stuff like that
     
  5. Pekelo

    Pekelo

    There is also the bastard brother of covered calls, called covered puts. You are short the stock and sold the puts. It is basically being negative on a stock with a protective put premium. Your profits are also limited, but when you are not sure about the timing of a stock's going down (like Tesla) and you don't expect a big drop anyway it is a pretty good strategy.
     
  6. kfir

    kfir

    I have mixed feeling about being short stock though, I rather play some options if I want to be bearish, it may be just because I've always heard bad things about shorting stocks
     
  7. Pekelo

    Pekelo

    I would only play covered puts on big cap stocks that are less likely of a huge upward movement. But capital wise playing a vertical spread (selling and buying calls) is more effective and also limited risk.

    But you asked for covered strategies...
     
    kfir likes this.