Covered Calls-Writing Covered Calls

likehown asked:


I sell covered calls. Can I sell an option and buy the stock and have them in different broker accounts? If I can, will my profit and loss be the same?

Zachary Riske

lufen asked:


I sort of understand how selling covered-calls work — selling the potential upside of your stocks for a premium. However, it seems like the buyer needs to buy these in 100-share “chunks”. Let’s say I own 55 shares of GE, is that enough shares to sell covered-calls?

Sharice Gillyard

Tesoro asked:


I wrote a covered call by using the “sell to open” choice. I bought stocks a week ago for $25 and I wrote the covered call for $30 and it expires in March. The premium I got on the option was $.90 a share which came out to $90. After the transaction was complete, my cash value in my account went up $90. However, why did the value in my balances/positions go down by $100?

Thanks.
Yes but I don’t own the option, so therefore if its price goes up why does it effect my portfolio? I sold the option, I did not buy it, so why does its price change matter?

Charolette Wendeln