0.00Open0.00Pre Close0 Volume0 Open Interest43.00Strike Price0.00Turnover0.00%IV-46.36%PremiumAug 16, 2024Expiry Date13.62Intrinsic Value100Multiplier3DDays to Expiry0.00Extrinsic Value100Contract SizeAmericanOptions Type--Delta--Gamma--Leverage Ratio--Theta--Rho--Eff Leverage--Vega
104472185 : I'm also a retail investor this stock can go further, I bought it at 29.83 when it pullback I will add my position
10baggerbamm : the first thing you need is round lots of stock if you have anything less than 100 shares you're not able to sell covered calls. and then every sequential amount of shares has to be in round lots also so 100 200 300 a thousand two thousand that type of thing.
every contract is equal to 100 shares
so if you have 200 shares you would sell two contracts
the next thing that you need to understand is there's a designated time and price that you would select and exchange for giving somebody the option for purchasing your stock in the future and typically it is on expiration date is when it would be called away and assigned to the buyer if they exercise the options and if you're deep in the money then you would obviously do that.
10baggerbamm : pt 2
so in the future at a designated time and price you give somebody the ability to buy your stock in exchange for that they pay you a premium and the premium trades with a bid and an offer just like a stock.. sometimes these premiums are very large they could be 100% difference between the bid and offer when you're very far out of the money into the future either above or below the current strike price the current price of the stock.. so just like a stock you would not want to buy it on the offer and sell it on the bid you can place a limit order in between the spread and typically depending upon the company that you are using to put in your orders it must be in 5 cent increments on lower price option contracts less than a dollar when you get above the dollar then you could go up you know if it's a $5 contract $2 you can go up in a penny increment.
10baggerbamm : pt 3
the option premium has several factors that affect its price
the time value is one and every day every second there's a gradual decay of time and as you approach expiration the value of that contract is declining because the time from when you initiated that option until expiration date is subsiding
then you have a volatility premium for example if you were to sell a covered call on Verizon and go out a month at a dollar higher than the current price there's not a lot of money to be made because it's not that volatile of a stock it's not a high beta stock
10baggerbamm : pt 4
the stock that you're going to be selling a call again has a lot of whipsaw movement it can trade through the course of a week several dollars up or down then there's a lot more volatility premium built into that contract meaning you're going to collect a lot more money because of the potential for to move up and through that strike price.
as the days go by towards expiration date that volatility premium also will gradually subside because there's less time left and the volatility gradually is diminished it's like betting on a stock that's going to go up $1.50 in one day probably wouldn't happen but if he had 2 months yeah I probably could go up 1
to bucks over 2 month..
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