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investopedia.com
Call Option: What It Is, How To Use It, and Examples
A call option gives you the right to buy a stock at a set price. Learn how call options work, when to use them, and examples to help you make smarter trading decisions.
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Selling covered calls is a trading strategy that can generate additional income from an existing stock portfolio. Here's a simple explanation of how it works: 1. Pick a stock you want to hold on to long term. For me, it’s Google. 2. Buy X amount of shares 3. Choose expiration date around 30-45 days away 4. Toggle on sell and call 5. Sell 1 contract ($155 strike price for $570) If Google is below $155 by the time of expiration I get to keep my $100 shares and the $570 worth of premium. Possible O
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