Covered Calls-Writing Covered Calls

fakechat6 asked:


you just buy the stock, then right after sell the call? is it cheaper to purchase them in groups such as married put, or a straddle? if a stock is exercised will it automatically sell the unit its purchased with? exacly how does it work?

Gracie Caposole

PhatCat asked:


I’m trying to find information on doing covered commodity calls. So if I have the physical commodity (e.g. raw sugar, frozen OJ etc) how would I utilize that to write calls against it? Where can I get more information on margins on this type of strategy? Thanks!

Harland Randzin

RonE asked:


Hi evryone. Just recently wrote my first covered call, after doing much research on how to write one. My question is after recieving the premium from the transaction (shows on history) why is my total balance being reduce say $100 (1contract x 1.00 current option value) and shows up as “short option value”. will they give this back to me once the option expires on NOV 17 06. Thanks, Once again Im a noob so please explain and help!

Erick Rocha

skahhh asked:


Will I get some kind of proceeds for having sold a covered call? Is it smart to write covered calls? Can I buy to close back my covered call and or do I need to do that when expiration takes place to get some sort of proceeds from it?

Freda Jongeling