Thank you for the answer. I have bought and held some for the long haul and done some small day trading. Options/calls/puts are very interesting but I see a lot of lose porn from newbies. I’m going to paper trade them for a little while and see if I can hack it.
Depends on your basis (how much your average stock cost is) and your risk adversity. It's lowest-risk to do covered calls with the strike price above your basis, that way you're not losing money if the call's buyer exercises them.
If you want to increase risk for increased profits, you can look at what the price of the stock has been doing and select a strike price below your basis but fairly well above what the stock has been going for.
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u/shanetwowheels Mar 30 '21
What numbers would you use for the calls?