Covered Calls for Beginners (Options Trading Strategy Tutorial)

📩 Get the library of my best options guides & presentations → 160+ page Options Trading for Beginners guide and bonus content: https://projectoption.com/free-guide ⚡ See your risk before you trade → visualize the P/L of any trade, and model any trade adjustment: https://projectoption.com 💥 The simplest, best-performing options strategy from my research: https://projectoption.com/data-driven-options-strategies ☑️ Open and fund a tastytrade account and get 3 months of the Option Modeler and IV Screener ($147 value): https://projectoption.com/tastytrade The covered call options strategy is very popular among long-term stock market investors. A covered call consists of selling or "writing" one call option against 100 shares of stock, which effectively reduces the cost of the shares and creates downside protection. How to Trade a Covered Call with Less Money: https://www.projectfinance.com/poor-mans-covered-call/ If the stock price is below the call's strike price at expiration, the investor will keep 100% of the premium they collected when selling the call option. The process can then be repeated in the next expiration cycle. In a perfect world, the investor can keep selling calls to create a stream of monthly income as the options continue to expire worthless. In reality, it's likely that the stock price eventually ends up above the short call's strike price at the time of expiration, and the investor will be forced to sell their shares of stock at the call's strike price. The downside of the strategy is that by selling a call against the shares, the investor gives up their profit potential on the shares above the strike price of the short call. In this video, we'll break down everything you need to know about the covered call strategy and show numerous historical trade examples to demonstrate how covered calls can be expected to perform in various scenarios. Video Topics: - What is the covered call strategy and how is it constructed? - How to set up the strategy on the tastyworks trading platform - Walkthroughs of historical trade examples with profit/loss visualizations - How to keep your shares at expiration when trading covered calls - Frequently asked questions Be sure to leave a comment down below with any questions you may have! === RECOMMENDED VIDEOS/RESOURCES === Covered Calls Explained: https://www.projectfinance.com/buy-write/ Poor Man's Covered Calls Explained: https://www.projectfinance.com/poor-mans-covered-call/ Options Trading For Beginners (PLAYLIST): https://www.youtube.com/playlist?list=PL33AZa4cv-o58ldr-5zSn4ROx4SZG7Jyo tastytrade Tutorials (PLAYLIST): https://www.youtube.com/playlist?list=PL33AZa4cv-o56a2BO3jpK_PBUFe3FdvxP Option Pricing EXPLAINED: https://youtu.be/-nnJ4pMBaxA Options Trading 101: https://youtu.be/3bELT5FZCic tastytrade, Inc. (“tastytrade”) has entered into a Marketing Agreement with Project Finance(Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’ brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade and/or any of its affiliated companies. Neither tastytrade nor any of its affiliated companies is responsible for the privacy practices of Marketing Agent or this website. tastytrade does not warrant the accuracy or content of the products or services offered by Marketing Agent or this website. Marketing Agent is independent and is not an affiliate of tastytrade.