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@Optionspuppy：🔥🥇🔥🏅🏦16/4 my sell call options positions and potential gain if u have the stock now and sell the call $Alphabet(GOOG)$ $JPMorgan Equity Premium Income ETF(JEPI)$ Options trading can be a great way to diversify your investment portfolio and generate additional income. One popular options strategy is selling call options, which can provide investors with a number of benefits. In this article, I will discuss the benefits of selling call options and provide examples of how this strategy can be implemented with four different stocks, including Manulife, QYLD, Google, and Jepi. Firstly, let's discuss what a call option is. A call option is a contract that gives the buyer the right, but not the obligation, to purchase a specific underlying asset, such as a stock, at a specific price, known as the strike price, on or before a specific expiration date. In exchange for this right, the buyer pays a premium to the seller of the call option. When an investor sells a call option, they are known as the option seller or writer. One of the primary benefits of selling call options is generating income. By selling a call option, the seller collects a premium from the buyer, which can provide a steady stream of income. This income can be particularly useful for investors who are seeking to supplement their regular income, or for those who are looking for alternative investment strategies. Another benefit of selling call options is that it can help to reduce risk. When an investor sells a call option, they are taking on the obligation to sell the underlying stock at the strike price if the option is exercised. However, because the option seller has already collected a premium, this can help to offset any potential losses that may be incurred if the stock price were to drop significantly. Furthermore, by setting the strike price, the option seller can also control the level of risk they are willing to take on. Let's take a look at some examples of how selling call options can be implemented with four different stocks: 1. Manulife: Currently, Manulife has a stock price of 19.09. As an options seller, I could sell a call option with a strike price of $17, which would fetch a premium of $1.90 for a two-month contract. This means that if the stock price remains below $17 by the expiration date, I get to keep the premium. However, if the stock price rises above $17, I will have to sell the stock at the lower price. This would still result in a profit, but I would have missed out on any additional gains beyond $17. QYLD: Another stock that could be used for selling call options is QYLD. Currently, the stock price is at $17.30. By selling a call option with a strike price of $16, I could collect a premium of $1.20 for a two-month contract. This would mean that if the stock price remains below $16, I keep the premium. If the stock price rises above $16, I would have to sell the stock at the lower price. This strategy can be repeated every two months to generate a steady stream of income. 1. Google: 2. Google is another popular stock that can be used for selling call options. Currently, the stock price is at $107. By selling a call option with a strike price of $120, I could collect a premium of $22 for a 25-month contract. This would mean that if the stock price remains below $120, I keep the premium. If the stock price rises above $120, I would have to sell the stock at the lower price. While the premium is higher in this case, it is also a longer contract, so it is important to consider the potential risks and rewards. 3. Jepi: 4. Finally, let's look at Jepi. Currently, the stock price is at $54.88. As an option seller, I could 1 / 1 Continue 1 / 1 Another benefit of selling call options is that it can be used to generate income in a market that is stagnant or slightly declining. This is because as the price of the underlying asset remains stagnant or decreases, the option premium for call options will also decrease. As the seller of the call option, you will continue to collect premium income while waiting for the stock price to recover or stabilize. For example, in the case of Manulife, the current price is 19.09. If the price remains at this level or even slightly decreases, the call option premium will also decrease. As the seller of the call option, you can continue to collect the premium income until the option expires, without worrying about the underlying asset's price. The same can be said for QYLD and Google, as they have both experienced slight declines in their prices. As the seller of the call option, you can continue to collect the premium income even as the prices decline, and wait for the prices to stabilize or recover. It's important to note that selling call options is not without risk. If the underlying asset's price rises above the strike price, the option buyer may choose to exercise their option, and you will be required to sell your shares at the agreed-upon price. This means that you will miss out on any further gains in the stock price beyond the strike price. However, in this scenario, you would still have collected the premium income from selling the call option. In conclusion, selling call options can be a profitable strategy in a variety of market conditions. It can be used to generate income, hedge against potential losses, and take advantage of stagnant or slightly declining markets. However, it's important to thoroughly research the underlying asset and strike price before selling call options, and to be aware of the risks involved 🐯 🐯🐯🐯🐯🐯 Dear tiger readers Please help to share post also clicking the repost button and follow me as I published my post on my ideas and trading experiences and sometimes including my current dividend positions and winning sell call and put trades . 🦁🦁🦁🦁🦁Do follow me share my posts regularly So more people can learn about my trading methods and winning trades on selling covered calls and puts options I share my options trade below usually I sell at a higher price then buy back at a lower price for a profit I also try to reward the first 100 commenters at least 1 coins each who also help me repost and like the article 🌈🌈🌈🌈🌈🌈🌈🌈 As always do your on due diligence and tradings have risks Do feature me @TigerStars @MillionaireTiger @Daily_Discussion @TigerStars so more people learn sell cash covered put on good stocks and earn 1% or more per month
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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