Covered Call Options

Anybody know how you'd go about writing a covered call opiton on say IBM stock on the US stock market? Also what are the fees/best brokerage to use?

any of the main US brokers will be able to support this.. generally expect to pay a flat trade fee of abuot $10 - $20 for the first contract and then about $1 per additional call. You can sell 1 call for every 100 shares you own so if you have say 1000 shares you could sell 10 calls..looking at the Sep 20 contracts for example the $130 call is trading at $250 so you could take in $2,500 in premium less about $30 transaction fees. Note, all US calls are American style contracts so you can be called to actually deliver the stock over the life of the option. You have to have the stock in the same brokerage account, you cannot hold it offline in certs or with another broker.

Hi Wigman, I did an investemnt course with TICN (the investment club network, www.ticn.com) which trades on the US markets, and as part of that I learned about covered calls. It is a great way of earning income on shares you own whether they are rising or falling. optionsexpress.com is one site where you can get covered call quotes.

I went on this course 2 1/2 years ago. I was not impressed. I also paid for
other courses at this time to this Co. The courses have not taken place as I paid for. I am interested to hear of anyone else with this experience

I paid for and attended this course 2 1/2 years ago. I was not impressed.
Furthermore I paid for further courses to take place in the Munster area.
These have not taken place. I am trying to get my money back.
Anyone else with this experience?

wigwam said:

Anybody know how you'd go about writing a covered call opiton on say IBM stock on the US stock market? Also what are the fees/best brokerage to use?

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In my humble opinion (speaking as a pro trader), selling covered calls is just a slow way of losing money.

Selling a Put is essentially the same thing but a more efficient way of allocating capital. However, if you are a beginner its best to stay away from options. It takes lots of experience to master options.