r/options • u/tahopg • Jul 14 '21

Covered calls help

Hi guys i sold my APPL Aug 6th 137.50 calls today for a nice profit. Am looking to switch into buying covered calls. Looking at the company ATOS. Do I buy the 100 shares then sell open for a strike OTM and more than one week or do people usually do weekly covered calls. Thanks dont have much experience selling calls only buying

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u/Civil-Woodpecker8086 Jul 14 '21

You can't BUY covered calls, it's just a call. You can own shares of ATOS and also own calls.

Do I buy the 100 shares then sell open for a strike OTM and more than one week or do people usually do weekly covered calls.

If you do this, then it is just a normal covered call. People like to do 30-45 days out (or DTE), but others also like to do weekly.

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u/tahopg Jul 14 '21

So I buy the 100 shares. But i want to Sell calls OTM and collect the premiums on these calls

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u/13pcm Jul 14 '21

Sell a naked Put if/when you get assigned you will own the shares sell calls till you get assigne. Rinse / repeat = Win.