05-10-2017, 07:55 AM
(05-10-2017, 06:40 AM)NilesMike Wrote:(05-09-2017, 07:41 AM)crimsonghost747 Wrote:If you sell calls against stock you own (again 100 shares per call contract sold), the stock will be called away from you (sold) if price of stock is above your call strike price (dividend risk notwithstanding).(05-09-2017, 05:33 AM)NilesMike Wrote: Why not stick to better companies and sell some options to increase your yield?
I'm not exactly comfortable trading options yet... but I'll take a look when I have the time to see if there is a strategy that would fit my needs. I don't have a lot of time to spend on it and I want it to be pretty safe... and of course keeping those two things in mind, I don't expect to make any huge gains. Any strategy that would more or less fit into this train of thought?
... or selling your stock for a profit. Less risky now isn't it?
Yeah this strategy might work for me, though obviously if the share price keep goes above the strike then, while still earning money, I'd be earning much less than what I would have earned without the option. But I guess that's the price I'd be willing to pay for the premium.
Thanks for the help, I still need to do more research and then actually take a look at the available options to see if there are any that would work for me. I don't have many shares where I own more than 100 so that might be an issue, but I'll see what I find with the shares where I do have a large enough position.