The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Options - You Make the Call


Subject:  Re: ITM Covered calls as bond substitutes Date:  12/13/2020  2:23 PM
Author:  blacktreechaser Number:  11288 of 11322

The only reason one should be doing in-the-money covered calls is for INCOME!

If someone else bot MGI in the $2 - $3 range for appreciation in share price, I would say Well done! T

To the folks that sold me those shares in the $2 - $3 sympathies, I hope you did well with the receipts from the sale.

When writing in-the-money covered calls against dividend paying stocks, you need to figure in the ex-dividend date. Otherwise, what your expecting yield might be greatly reduced if the shares are called early.

Consider risk/reward.
Copyright 1996-2021 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us