I bought 100 shares of stock. now i want to write a covered call. How do i place the order?

Question

I bought 100 shares of stock. now i want to write a covered call. How do i place the order?

Answer 1

You can use MSN Money's website http://moneycentral.msn.com/home.asp  Yahoo Finance website http://finance.yahoo.com/

or your brokerage firms website

Make sure with your brokerage firm that you are approved to trade options, you will have to sign an option agreement

Just enter the security symbol, and on the left it will indicate "options", you can select the symbol for the expiraton month and the strike price that you want.

You would use that symbol to enter you order (many B/D may want a character added to the symbol), you will be selling to "open" so this must be entered - most firms have edits that will walk you through this process, you will enter the number of contracts (in your case 1) next you will enter the price you want to sell the contract.

good luck

Answer 2

Sell the call. Try to do it Monday or early this week. Theta will be moving fast and you'll want to make as much as possible before July expiration. Try to keep your probability of expiring in the 30's.  

I usually buy back my calls a couple days before expiration (unless they're out of the money).

check out the "flash" video on tips for trading in an IRA. There's a nice section on covered calls;

https://www.thinkorswim.com/tos/displayP...

Free classes on options;

http://www.optionplanet.com/assembled/li...

Also check out;

http://www.redoption.com/

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Answer 3

execute an order to sell a call on your stock and just choose yhe srike prce and expiration on the lists of calls available for you symbol.

Answer 4

Why would you want to write a covered call?

If the stock goes up, someone else gets the gains.

If the stock goes down, you make money selling the call, but lose money on the stock.

Answer 5

You would sell the call at the strike price you bought the stock at.

If you Bought 100 shares of XYZ @ 15.00

Then to collect the premium you would place the order as:

TO OPEN: Sell  (1) JULY call of XYZ at a strike price 15.00