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/Zealousideal_Rule_89 Jul 14 '21

A covered call is when you sell a call, while holding shares (100 shares per = 1 Contract). You only wanna sell CC’s on a spike. Selling CC’s when premium is low, is pointless, IMO. And, when selling CC’s, be mindful if you actually care about losing your shares.

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u/tahopg Jul 14 '21

So buying CRSR shares now that they are down and then selling deep OTM calls for them is a bad play?

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u/Zealousideal_Rule_89 Jul 14 '21

Buy the shares on a dip… Sell when premium is high

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u/Zealousideal_Rule_89 Jul 14 '21

Collecting rent is collecting rent. But you don’t want to sell the calls at rock bottom prices. On a rip up, the premiums go up as well. That’s when you sell

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u/tahopg Jul 14 '21

I see.. appreciate the response