covered calls

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covered calls Anonymous Tue Dec 8 03:43:45 2020 No.24640123 [Reply] [Original]

>buy 100 shares of stock at $1.
>sell 1 call contract at strike price of $1, premium of $0.01
>stock price rises, shares bought
>now have $101
free money?

>>	Anonymous Tue Dec 8 03:52:35 2020 No.24640225 File: 163 KB, 360x474, 1607033148002.png [View same] [iqdb] [saucenao] [google] >>24640123 delete this!

>>	Anonymous Tue Dec 8 03:55:49 2020 No.24640267 File: 12 KB, 255x253, 1607281538308.jpg [View same] [iqdb] [saucenao] [google] >>24640225

>>	Anonymous Tue Dec 8 03:59:17 2020 No.24640308 Free money until your stock tanks and you’re stuck bagholding for eternity but if you did this with something like SPY then yes free money.

>>	Anonymous Tue Dec 8 04:14:58 2020 No.24640473 >>24640123 free money til the $1 stonk suddenly gaps up to $3 because Elon Musk announced some partnership with the company and you are left with $101 and could have had $300.

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