11-22-2016, 10:57 AM
(11-22-2016, 07:23 AM)NilesMike Wrote: Current example AAPL: Covered call. Stock $ 111.73, sell 30 DEC 16 $114 call for $1.60. (1.4% return if AAPL expires below $114). If AAPL expires at/above $114 return is 3.5% return for 38 days.
There is something that I don't understand about this. Because to me it looks like you will win if apple stays under $114 and you will also win if apple goes above $114. And 100% certain profit with zero risk is something that sounds too good to be true.
