Hi

I use covered calls for hedging my positions. it minimizes my downsides as well as upsides. Good for some side income while waiting for the right time to sell of my positions when the price is right

I catch no balls just need to adopt textbooks mentality for learning

Choose some high-quality stocks less rask.

Selling covered call involves selling call option on an underlying stock that you already owned. It works best if the underlying stock does not make drastic price movements in the duration concerned (DTE - date to expiry of option).
While it can also be a strategy employed in volatile markets,  it may be worthwhile to note of the compounded risks if the strike price entered into for the call is lower than the purchase cost of stock.
For eg, you have been assigned (under a put op...

When a covered call goes against you, there are some choices:
1. Wait.
See if the stock recovers by the call's expiration. If it stays below the strike price, the call expires and you keep the stock.
2. Roll.
Buy back the call and sell a new one with later expiry or higher strike. Recover losses or get more premium.
3. Close.
If the stock keeps dropping, you can buy back the call and sell the stock to limit losses.
4. Buy ...

Normally we use call to call the bull come. If call bull don't come then we can put bear in front of the bull to seduce it. The goal is to put lubricant to minimize their friction. 🐖🦖