Yeah I see it in my trading platform. Yahoo Finance I guess is slow in getting all the option chain info.
but what happens if you do that and RBLX gaps down friday to 30 dollars a share. Hows that selling premiums easy money plan going to work out. YOU You paid 645 dollars for stock worth 3000 but what if something happens on monday and stock plunges to 20 dollars a share? What next? Why on a company that loses money.
Look just stick to SPY etf at least its a basket of the big 500 multinationals backed by the Federal Reserve and US govt. go sell the 390 puts expiring april 19 at least if you get put stock to your account its something you can hold on to unlike some shit Roblox meme stock that loses money and will be worth zero and does not pay dividends like SPY And add some black swan insurance and buy the 330 April 19 puts. Just in case if we go to war or covid 2.0 strikes or aliens invade you have a max loss floor on that position. 7.14 - .62 and you get 652 buck per spread. 10 contracts thats 6520 USD. Worst case you get SPY at a discount and outperformed the market for the month.
Well explained. But i ask myself, is this in general a good business? If the stock price stays below the strike, you can keep your premium (calls expire worthless), but in case of a falling price your 400 stocks will lose value. And the loss of value could exceed the premium you got. The best scenario would be the stock price goes higher but doesn´t reach the strike, so you could keep your premium and your stocks gain in value. Or do i misunderstand something?
You're correct in your view but if you're not comfortable owning the stock then you shouldn't be doing a covered call. If you like dividends, this is another way to create a dividend as long as the stock doesn't reach your short call. More than 90% of my portfolio is covered calls. If the stock looks like it might reach my short call before expiration then I roll it up & out if I don't want to be called away. At some point the calls will expire worthless or I'll get called away.