Selling ITM Covered Call - Good Strategy or Bad Mistake?

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Title	:	Selling ITM Covered Call - Good Strategy or Bad Mistake?
Lasting	:	20.28
Date of publication	:
Views	:	8,2 rb

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Comment from : Options with Davis

This good option for registered accounts where you are not allowed to sell cash secured puts
Comment from : jbond008

thanks take it home
Comment from : Paul Ling

Is there any sort of viability to the idea of buying a stock and selling a deep ITM LEAP call, to hold the stock for dividends for a while? For instance if I look at something like SCHD today, it's at 72 and the lowest LEAP call is a 35 strike with a 35 bid and 3950 ask Last trade 3850 There's no premium with this, delta is like 9999 But you'd be into 100 shares at a cost of about 50 of the current market price, and thus have a dividend yield more around 72 instead of 36? Or would early exercise of a deep ITM LEAP be too likely?
Comment from : Jonathan Roy

Same risk as selling a naked put at the same strike Buy writes you cap your upside in good times You need all the upside gains in good times to offset losses in bad times Just collecting premium is not going offset big drops
Comment from : Bill Estep

very good explanation mate
Comment from : Kanyon Ni Mang Simeon

Good video I liked the OTM put idea and may need to think thru it more But one thing I would add to it - for long term holders, dividends can come into play on increased profits Because of that, going long 100 shares + selling a CCall will allow you to still capture dividends, where OTM puts you wouldn't get that Just a thought I enjoyed the rest of the vid
Comment from : BP Gmail

I am beginner learning so Davis, what I try to understand if you sell cc itm or otm still may generate some premium profit more or less depends where you entry point, it's right
Comment from : Heidi Ly

Great video again Davis, I am currently learning option, Thank you again for the video
Comment from : Heidi Ly

Interesting analysis, but the scripts which I wrote and run on ThinkorSwim also show that in many instances the ITM is generally more profitable than selling ITM covered calls But good analysis
Comment from : Peter Kuchnicki

Great video
Comment from : JY Demir

Hi Davis I just rewatched One point I would add If you have a PM acct, the margin on the ccall is less than that required for the equivelant amt of cash secured put sales BUT I am using an ATM put like with the ccall for the most extrinsic value Thanks
Comment from : K T

Very good 🇮🇳
Comment from : Drsrikanth Royal

Excellent explanation and analysis
Comment from : Peter Kuchnicki

Very good explanation and appreciate your insight
Comment from : leebowlby

For the position I am trading, the put premium is paper thin so I have not used that idea However, with other future positions, it looks like a great one to add to my tool kit Thanks Davis
Comment from : K T