Hot stocks covered call reference [June 5]

Selling covered call options (sell covered call) is a strategy adopted by many large funds. It can also be used by retail investors in the US stock market.You can get income while holding it.

This strategy is very suitable for stocks that have long-term positions, but they have not moved but they are not in a bearish position recently or are in a bearish position recently. It can be a good strategy for mature investors to roll over when holding some targets for a long time.

Income comparison

Assume that investors hold 200 shares of Amazon from January 1 to December 17, 2021

If there is no operation during the holding period, the final total assets will be USD 675,484

If the covered call strategy is carried out, it will be operated once a week; if 100 shares are sold after the exercise, another 100 shares will be purchased on the next trading day.The final total assets is USD 728898 (include fees and costs).

Today's Covered Call(for your reference)

Option Stock Expiry Date Strike Price Premium Implied volatility Annualized rate of return
$TSLA 20230616 230.0 call$ TSLA 2023/06/16 230.0 3.210000 0.510000 45.63%
$AAPL 20230616 187.5 call$ AAPL 2023/06/16 187.5 1.150000 0.240000 19.33%
$NVDA 20230616 465.0 call$ NVDA 2023/06/16 465.0 1.130000 0.530000 8.74%
$PLTR 20230616 17.5 call$ PLTR 2023/06/16 17.5 0.170000 0.830000 35.61%
$BABA 20230616 93.0 call$ BABA 2023/06/16 93.0 0.740000 0.500000 26.71%
$NIO 20230616 9.0 call$ NIO 2023/06/16 9.0 0.170000 1.020000 68.40%
$AMZN 20230616 131.0 call$ AMZN 2023/06/16 131.0 0.770000 0.290000 18.85%
$AMD 20230616 131.0 call$ AMD 2023/06/16 131.0 1.090000 0.530000 28.13%
$SPY 20230616 438.0 call$ SPY 2023/06/16 438.0 0.830000 0.110000 5.90%
$UCAR 20230616 17.5 call$ UCAR 2023/06/16 17.5 0.400000 3.020000 135.04%
$META 20230616 282.5 call$ META 2023/06/16 282.5 2.920000 0.300000 32.58%
$MSFT 20230616 350.0 call$ MSFT 2023/06/16 350.0 1.020000 0.200000 9.25%
$SE 20230616 70.0 call$ SE 2023/06/16 70.0 0.210000 0.570000 10.76%
$TIGR 20230616 4.0 call$ TIGR 2023/06/16 4.0 0.030000 1.370000 29.34%
$OXY 20230616 62.5 call$ OXY 2023/06/16 62.5 0.420000 0.290000 21.40%
$GOOG 20230616 132.0 call$ GOOG 2023/06/16 132.0 0.510000 0.250000 12.39%


  1. Options listed in this table are for reference only during the trading hours of the day;
  2. Hot stocks are the top 20 stocks with highest number of visits on Tiger Trade;
  3. Data source:Tiger Trade.

Option Screening Rules

strike >= p * e^{1.04 * sigma * sqrt{days/365}}

p :      current stock price

sigma:Stock History Volatility

days :the number of days from the option expiry date ( next Friday)

If you have no experience in trading options, you can try option simulation trading

Guidance for Options Paper Account

Questions and Answers

What Is a Covered Call?

The term covered call refers to a financial transaction in which the investor selling call options owns an equivalent amount of the underlying security.

How to make extra profits by selling covered call

Strategy applicable group:

Hold the positive shares mentioned in the strategy, hold a position of ≥100.

How do I know if a covered call has been completed:

The presence of the word portfolio next to the name of an open stock or option indicates the execution of a covered strategy.

Strategic income:

An annualized return is calculated based on yesterday's closing price by referring to the option strategy filter rule.

(premium per share / yesterday's closing price) * (No. of days in 1 year / duration of option in days)

For example, yesterday's closing price is $100 , the option premium is $1 and expires 30 days from now. Putting it into the equation (1/100) * (365/30) = 12.17% per annum.

Exercise pric:

The option price is calculated according to yesterday's closing price by referring to the option strategy screening rule. Whether to trade at the strike price provided in the strategy depends on how far the share price diverges from the closing price.


Shares held at expiration are sold at a price above the strike price. The stock price on the expiration date is lower than the exercise price, the stock held does not move, the value of the option goes to zero and is automatically cleared by the system.

Risk warning:

If the stock price on the expiration date is higher than the strike price, and the position cost price is higher than the strike price, the stock sold due to counterparty exercising of the option may cause losses.


Options are categorised as Specified Investment Product (SIP) and are generally more complex than other financial products. You will need to go through a Customer Account Review (CAR) before Options can be offered to you.

The information expressed herein is current and does not constitute an offer, recommendation or solicitation, nor does it constitute any prediction of likely future stock performance.

The price of investment instruments can and do fluctuate, and any individual instrument may experience upward or downward movements, and under certain circumstances may even become valueless. Past performance is not a guarantee of future results.

In preparing this information, we did not take into account the investment objectives, risk appetite, financial situation or particular needs of any person or affiliated companies. Before making an investment decision, you should speak to a financial adviser to consider whether this information is appropriate to your needs, risk appetite, objectives and circumstances. Tiger Brokers assumes no fiduciary responsibility or liability for any consequences financial or otherwise arising from trading in securities if opinions and information herein may be relied upon.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

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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