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Update:

Selling the FEB 15th CALL $23 Strike for $1.00.  Current price 1.02

 

This is a Covered Call

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3 Responses
  1. amussic@gmail.com

    So here we can be assigned 100 shares per 1 contract for 23usd per share meaning that it will cost us 2300usd plus 100usd premium?
    If we would sell puts we would have to own 100shares to trade

    1. Andrew Gonci

      Good question. This is a Stock Covered call if you own the shares already so you can have the shares called away. If you sell them naked you will end up in a short position if the option is assigned. In otherwords you will be short 100 shares.

      I would not be selling naked calls into a bullish move as markets can move higher longer than your margin will allow you to be short.

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