To The Moon

Earn 1% or $80 usd selling Fang call optionS thisis on $Alphabet(GOOG)$ 

As seen I sold an  call option at around $7.70 1 month plus ago and also sold a put option at $8 

I closed the 2 options at by buying back at 7.35 and 7.60 respectively So earning around $80 so is near 1% actually made some mistakes didn't ride the put higher to earn more for the recovery will be seeing today sell call again soon and hope it fluctuated every few months 

@Daily_Discussion @TigerEvents @TigerStars @TigerPM do feature me thanks for people learn more on mid term trades to short term trades on Google 

Selling covered calls is a strategy in which an investor writes a call option contract while at the same time owning an equivalent number of shares of the underlying stock. Learn the basics of selling covered calls and how to use them in your investment strategy.

Example

Let’s say you own 100 shares of XYZ stock at a price of $100, and you expect the stock to stay relatively flat or increase moderately in the near future. You decide to sell the $105 call option that’s expiring in 30 days. The option is trading for a $2 premium, which you’d receive $200 for selling:

Own 100 shares of XYZ at $100 per share Sell 1 XYZ $105 Call for $2

The theoretical max gain is $7 per share, or $700. It’s calculated by taking the strike price ($105) and subtracting the cost basis of the shares ($100) and adding the premium collected ($2). Max gain occurs if the underlying stock price is above the strike price of the short call ($105) at expiration, and you’re assigned. Your shares would be sold at $105.

The theoretical max loss is $98 per share, or $9,800. It’s calculated by taking the cost basis of your shares ($100) and subtracting the premium collected ($2). Max loss occurs if the stock dropped to $0, which may be unlikely, but is always possible. Your short call would expire worthless, but your shares would experience a max loss.

The breakeven point at expiration is $98, which is the cost basis of your shares ($100) minus the premium collected ($2).