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Real-Time Options Data

Covered Calls

This screener identifies the most expensive OOTM call options for you to sell to generate this income. As always, pay attention to dividend and earnings dates.

Video Transcript

One of the most popular ways to create income for your portfolio is to sell covered call options. You can sell one covered call for every 100 shares of stock that you own. If you don’t own the shares, you can buy them at the same time and that is called a “buywrite”.

On the screener, you’ll sell the option indicated by the symbol, expiratioqn, and strike.

You’ve also got the upcoming earnings date.

This can really move the stock price so plan accordingly.

The implied volatility. Watch out for high IV stocks here, they aren’t great for a long term covered call strategy.

The assigned return percent is the return in the event that the stock closes above the strike price on expiration.

Further refine your selection using the market cap, beta and dividend yield.

If you’re new to covered calls, try the Sell Call and Sell Covered Call links.

How is this useful?

You can benefit from selling covered calls to drive down your cost basis and produce income for your portfolio. That income can be reinvested to purchase more shares, and ultimately sell more call options.

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