#1.What is the best and cheapest broker to do covered calls next to?
#2.What is the shortest amount of time you can
#1. buy a stock
#2. enter a covered call
#3.it is call and you sell or it is not and expires and can you vend it that day?
Does anyone clear money getting in and out this nippy?
I assume there is more taxes and lots more broker fees but I assume your risk is smaller quantity if you could be in and out of the stock contained by 2 weeks or less correct?
Thanks,
Dan
Answers: A give the name has time attraction that decreases as expiration approaches. That can minister to for covered calls if the stock price does not rise and you can buy your christen back cheaper than you sold it for (or permit it expire worthless if stock remains below your strike).
You can either buy the stock and go the call simultainiously or buy the stock and flog the call when you have an idea that the stock is peaking and just about to roll over.
For American style options an pick buyer could exercise their option any time the likelihood is "in the money" (unlikely, but possible earlier expiration). You hear about "option Friday", but options contained by the money actually settle that Saturday. So if you want to deal in the stock without buying put money on the call, you would necessitate to wait until after the weekend.
But after your phone expires that weekend, you could just go another option beside later expiration, and hope that one expires worthless short the stock dropping too much.
As far as the best broker, that depends how many contracts you would trade for respectively equity. Some charge a regular trade fee plus a small amount for extra contracts. Thinkorswim.com lets you trade way out strategies (even in IRA) that other brokers might not, and is flawless for small trades/learning at $2.95 per contract (they only charge me $1.50), and $5 for stock trades. They also own useful tools (real time quotes and graphs, and idealistic option pricing base on parameters you enter for stock price, date, or volitility).
At Fidelity (silver level) it costs me $10.95 plus 0.75/contract after the first one. That could cost smaller quantity for a larger number of contracts, but the only option they approve me for at this time (in IRA) is covered calls.
I would recommend TradeKing. They charge $4.95 for buying stocks and option.
Most option traders let you do the trade together (Buying the stock and selling the option). You can also close the trade(Sell the stock and buy the call rear at the same instant) anytime, but you cannot provide the stock as long as the the option is friendly.
If the option helpfulness is more than $.05 during the expiration, there is a possibility that you might be assigned. you enjoy to wait till the subsequent trading day to find out if the alternative call is going to be exercised.
I own used this strategy to buy stocks I like, but have already had a well-mannered rally. So If the phone is assigned I make money, save I get to hold the premium and the stock. The strategy works for stocks with momentum.
<<<#1.What is the best and cheapest broker to do covered call with?>>>
The cheapest for most individuals is probably Interactive Brokers. The best depends upon what you want from your brokerage.
Click on "fees" at
http://individuals.interactivebrokers.co...
to see their prices.
<<<#2.What is the shortest amount of time you can
#1. buy a stock
#2. enter a covered nickname
#3.it is called and you provide or it is not and expires and can you sell it that daytime?>>>
As others have noted, you can buy the stock and trade the call substitute in a single transaction call a "buy-write" transaction.
If you write an option you hold no contraol over when or if you get assigned. Unless at hand is a ex-dividend date prior to expiration, and the dividend is substantial, it is unlikely that a call resort will be assigned prior to expiration. Since listed option on stocks only expire once a month, you can simply expect assignment of in the money call once a month.
As far as closing the position with a closing transaction, explicitly allowed any time including the same time. However if you do it the same hours of daylight too often you will be considered a model day trader and lasting requirements, such as a minimum balance of $25,000, will be placed on your narrative. Also if you have a lolly account (as defiant a margin account) you call for to be careful not to violate free-riding regulations.
<<<Does anyone product money getting in and out this swift?>>>
I am sure some people enjoy tried it, but I doubt if many (if any) hold done it for very long. I conjecture it would be very difficulat to amke money getting surrounded by and out that fast.
<<<I assume in that is more taxes and lots more broker fees>>>
More taxes if and only if you construct more money. More complicated taxed, other. More trades means more broker fees.
<<<but I assume your risk is smaller amount if you could be in and out of the stock contained by 2 weeks or less correct?>>>
That depends upon where on earth your money is when it is not in that stock. If it is invested contained by another similar stock the risk is similar. If it is invested in Treasury Bills the risk, as capably as the opportunity, is less.
------------------
Remember the the spread between the bid and the ask prices on an preference are usually a much higher percentage than the spread on a stock. For example, if the bid quote is $0.30 and the ask quote is $0.40, you can lose 25% of what you compensated for the option by pipe and closing it without any transform its price.
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#2.What is the shortest amount of time you can
#1. buy a stock
#2. enter a covered call
#3.it is call and you sell or it is not and expires and can you vend it that day?
Does anyone clear money getting in and out this nippy?
I assume there is more taxes and lots more broker fees but I assume your risk is smaller quantity if you could be in and out of the stock contained by 2 weeks or less correct?
Thanks,
Dan
What is growth and income investing?
Answers: A give the name has time attraction that decreases as expiration approaches. That can minister to for covered calls if the stock price does not rise and you can buy your christen back cheaper than you sold it for (or permit it expire worthless if stock remains below your strike).
You can either buy the stock and go the call simultainiously or buy the stock and flog the call when you have an idea that the stock is peaking and just about to roll over.
For American style options an pick buyer could exercise their option any time the likelihood is "in the money" (unlikely, but possible earlier expiration). You hear about "option Friday", but options contained by the money actually settle that Saturday. So if you want to deal in the stock without buying put money on the call, you would necessitate to wait until after the weekend.
But after your phone expires that weekend, you could just go another option beside later expiration, and hope that one expires worthless short the stock dropping too much.
As far as the best broker, that depends how many contracts you would trade for respectively equity. Some charge a regular trade fee plus a small amount for extra contracts. Thinkorswim.com lets you trade way out strategies (even in IRA) that other brokers might not, and is flawless for small trades/learning at $2.95 per contract (they only charge me $1.50), and $5 for stock trades. They also own useful tools (real time quotes and graphs, and idealistic option pricing base on parameters you enter for stock price, date, or volitility).
At Fidelity (silver level) it costs me $10.95 plus 0.75/contract after the first one. That could cost smaller quantity for a larger number of contracts, but the only option they approve me for at this time (in IRA) is covered calls.
Is Sterling a obedient currency to trade ?
I would recommend TradeKing. They charge $4.95 for buying stocks and option.
Most option traders let you do the trade together (Buying the stock and selling the option). You can also close the trade(Sell the stock and buy the call rear at the same instant) anytime, but you cannot provide the stock as long as the the option is friendly.
If the option helpfulness is more than $.05 during the expiration, there is a possibility that you might be assigned. you enjoy to wait till the subsequent trading day to find out if the alternative call is going to be exercised.
I own used this strategy to buy stocks I like, but have already had a well-mannered rally. So If the phone is assigned I make money, save I get to hold the premium and the stock. The strategy works for stocks with momentum.
Are you a martyr of 12dailypro?
<<<#1.What is the best and cheapest broker to do covered call with?>>>
The cheapest for most individuals is probably Interactive Brokers. The best depends upon what you want from your brokerage.
Click on "fees" at
http://individuals.interactivebrokers.co...
to see their prices.
<<<#2.What is the shortest amount of time you can
#1. buy a stock
#2. enter a covered nickname
#3.it is called and you provide or it is not and expires and can you sell it that daytime?>>>
As others have noted, you can buy the stock and trade the call substitute in a single transaction call a "buy-write" transaction.
If you write an option you hold no contraol over when or if you get assigned. Unless at hand is a ex-dividend date prior to expiration, and the dividend is substantial, it is unlikely that a call resort will be assigned prior to expiration. Since listed option on stocks only expire once a month, you can simply expect assignment of in the money call once a month.
As far as closing the position with a closing transaction, explicitly allowed any time including the same time. However if you do it the same hours of daylight too often you will be considered a model day trader and lasting requirements, such as a minimum balance of $25,000, will be placed on your narrative. Also if you have a lolly account (as defiant a margin account) you call for to be careful not to violate free-riding regulations.
<<<Does anyone product money getting in and out this swift?>>>
I am sure some people enjoy tried it, but I doubt if many (if any) hold done it for very long. I conjecture it would be very difficulat to amke money getting surrounded by and out that fast.
<<<I assume in that is more taxes and lots more broker fees>>>
More taxes if and only if you construct more money. More complicated taxed, other. More trades means more broker fees.
<<<but I assume your risk is smaller amount if you could be in and out of the stock contained by 2 weeks or less correct?>>>
That depends upon where on earth your money is when it is not in that stock. If it is invested contained by another similar stock the risk is similar. If it is invested in Treasury Bills the risk, as capably as the opportunity, is less.
------------------
Remember the the spread between the bid and the ask prices on an preference are usually a much higher percentage than the spread on a stock. For example, if the bid quote is $0.30 and the ask quote is $0.40, you can lose 25% of what you compensated for the option by pipe and closing it without any transform its price.
Resolved Questions: