When you sell a put option, you're promising to buy a stock at a set price if it falls below that level—similar to how an insurance company promises to pay if your car gets damaged. In exchange, you ...

Here's the theory behind the formula: When a call optionon a stock expires ... borrowed the $100 exercise price. At the option's expiration date, you sell the stock for $120, you pay back the ...

In this video, Marco explains how to generate income from shares you already own by writing covered calls and cash-secured ...

The call owner can exercise the option, putting up cash to buy the stock at the strike price. Or the owner can simply sell the option at its fair market value to another buyer before it expires.

A call option ... would allow them to sell shares for more than they’re worth or sell the contract for more than they paid). Investors can realize gains from call options in one of two ways ...

At Stock Options Channel, our YieldBoost formula has looked up and down ... current price level of $52.26/share, and then sell-to-open that call contract as a "covered call," they are committing ...

to buy or sell a specific stock at a designated price before a particular date. Options come in two varieties, including calls and puts. The concepts involved are relatively simple, but keeping ...

Welcome to the world of call options, where experienced investors unlock opportunities beyond simply buying and selling stocks and exchange-traded funds. In this comprehensive guide, we will ...

At Stock Options Channel, our YieldBoost formula has looked up and down ... current price level of $56.51/share, and then sell-to-open that call contract as a "covered call," they are committing ...

Image source: The Motley Fool A call option is the right to buy a stock at a specific price by an expiration date, and a put option is the right to sell a stock at a specific price by an ...

Selling call options (the "call" component): This is the core of covered calls. By selling a call option on your ABC Corporation shares, you are effectively granting another investor the right ...