Hi croasian,
not at all. Selling calls on WOR and BHP gave me A$7,000 income this month, and commission was les than A$70 total.
If BHP trades above A$19.90 then I will sell them at that price (A$19 + the premium I have already made). If they trade below that then I will keep my premium and still own the stock.
Same for WOR. If it trades above A$8.25 then I sell them at that and make A$8.25 + the premium I made - so selling price about A$8.50. If they trade below A$8.25 then I keep the premium and the stock.
I am happy for the stocks to rally and lock in the above prices, and if they don't rally, then I will write more calls next month to create further income.
Win/Win for me. Agree though that best to stick to vanilla trading if not comfortable with this.
Covered Call, page-14
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Last
$13.73 |
Change
-0.135(0.97%) |
Mkt cap ! $7.649B | |||
| Open | High | Low | Value | Volume |
| $13.90 | $13.91 | $13.71 | $14.60M | 1.056M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 16 | 2373 | $13.72 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $13.73 | 7403 | 44 |
View Market Depth
| Last trade - 14.20pm 28/11/2024 (20 minute delay) ? |
| WOR (ASX) Chart |
