Cow Moo-ney
OP
TinkerB3ll
:
Yeah sell covered call, which means u will need 100 shares before you sell the call. Otherwise it’s called naked call - which is super dangerous
Anyway, for covered calls, as long as your strike price is above your cost price, the risk is probably losing out on potential upside. Another risk would be the stock (just like any other stock) has a chance to crash to zero, and u will lose your capital
MayTay : can sell or buy
Mr Pistachio : good one!
SPACELIGHT : On the mark. Couldn't agree more.
TinkerB3ll : What the strategy? Sell call? Love to learn more about this, what’s the risk?
Cow Moo-ney OP TinkerB3ll : Yeah sell covered call, which means u will need 100 shares before you sell the call. Otherwise it’s called naked call - which is super dangerous
Anyway, for covered calls, as long as your strike price is above your cost price, the risk is probably losing out on potential upside. Another risk would be the stock (just like any other stock) has a chance to crash to zero, and u will lose your capital
JonSnow : Trend is your friend till the end.