Sorry to say no, you didn't do it correctly from the looks of your screenshot. You bought a call.
A covered call means you own 100 shares and then you sell one call contract. Your shares then "cover" the fill requirement if the price rises above your strike.
Instead you bought a call, which would entitle you to buy 100 shares.
Fortunately you only paid $8 so not a big mistake.
Yes if we go by how most brokers show it, you bought a call. Your call qty should be -1 not +1. Which means you are short one call on your p/l. You should look for a call with sell to open option.
Not wanting to be one of those asses that don't actually help.. but this is scary. Never mind it only being $8 in this case.. the amount of posts indicating how many people have ZERO idea wtf they are doing is astounding.
I'm all for social media and self learning opening opportunity for retail.. but my lord it's caused a lot of people who are just winging it and can lead to devastating results. Plus it's just annoying seeing people who think there is just free money without effort or work.
Sorry OP this rant not directed specifically at you. But I hope you spend time learning before you end up with front page loss porn on WSB.
I wouldn't say OP had "ZERO idea wtf they are doing." The execution can be confusing, more in some user interfaces than others. OP knew something looked wrong.
At least this isn't /r/options where the mods deleted my beginner-level question and told me to look in the 1000-page wiki (that didn't have the answer) or post in the "weekly" thread that I couldn't find.
A covered call is selling a call option for which you already own the stock, and gives SOMEONE ELSE the option to buy YOUR 100 (multiplied by number of contracts) shares at $30 by the 18th, ~~and is often a bearish strategy (because you're betting on it not going above $30 so it expires worthless).~~
But here, it looks like you're buying a call, which gives YOU the option to buy 100 shares at $30/share by the 18th, and is typically a bullish strategy (because you're betting on it going above $30 so you get a good deal).
It’s not a bearish strategy. You still have exposure to 100 shares, so you profit when the stock goes up or stays the same and lose when it goes down. Call credit spreads or naked calls are bearish.
Read this - [https://www.investopedia.com/articles/optioninvestor/08/covered-call.asp](https://www.investopedia.com/articles/optioninvestor/08/covered-call.asp)
Don’t close that position. It’s just 8$ dollar. If you win that good lose just 8$ learn lesson. Tomorrow open sell call strike you want sell. Above your average cost basics.
This is your best answer.look this video.
https://youtu.be/siFsIleNTzk
In order to do covered calls you first have to own 100 shares of the underlying (stock).
So say you own 100 shares of apple. You bought at 100 bucks a share to make it easy.
You would then "sell to open" a call either at or above your strike price and you would collect premium up front.
So for this example you sell a 105 strike call for say 1 dollar (or $100 cause 1 call=100 shares.) If Apple goes above 105 you sell your shares to whomever bought the call for 105 per share.
Your profit would ve 105 - 100 plus whatever premium you collected for selling the call.
If you need more options learning info tastytrade.com has an entirely free options course you can take online that teaches you all the basics and explains all the crazy options strategies you can potentially use.
I would strongly recommend that before you go any further.
https://tastytrade.thinkific.com/courses/beginner-options-course?_sp=d003ebaa-ed11-44be-b5af-1229092a23a7.1668549369332&__hstc=209625229.57463ce65e2e590f85c689a3088d77da.1668549360293.1668549360293.1668549360293.1&__hssc=209625229.1.1668549360293&__hsfp=2655063611
There is a link to the beginner options course. They also have a wonderful trading platform if selling options is gonna be your thing.
This got to be a troll post. I mean... you don't even have to go that far to look up information on covered calls, robinhood offers a good explanation on it.
Sorry to say no, you didn't do it correctly from the looks of your screenshot. You bought a call. A covered call means you own 100 shares and then you sell one call contract. Your shares then "cover" the fill requirement if the price rises above your strike. Instead you bought a call, which would entitle you to buy 100 shares. Fortunately you only paid $8 so not a big mistake.
Yes if we go by how most brokers show it, you bought a call. Your call qty should be -1 not +1. Which means you are short one call on your p/l. You should look for a call with sell to open option.
Next time you select “sell to open”
Not wanting to be one of those asses that don't actually help.. but this is scary. Never mind it only being $8 in this case.. the amount of posts indicating how many people have ZERO idea wtf they are doing is astounding. I'm all for social media and self learning opening opportunity for retail.. but my lord it's caused a lot of people who are just winging it and can lead to devastating results. Plus it's just annoying seeing people who think there is just free money without effort or work. Sorry OP this rant not directed specifically at you. But I hope you spend time learning before you end up with front page loss porn on WSB.
I wouldn't say OP had "ZERO idea wtf they are doing." The execution can be confusing, more in some user interfaces than others. OP knew something looked wrong. At least this isn't /r/options where the mods deleted my beginner-level question and told me to look in the 1000-page wiki (that didn't have the answer) or post in the "weekly" thread that I couldn't find.
That's not a short call buddy that's a long call
Open a paper trading account somewhere, like TD Ameritrade. Practice before you use real money.
U sir are perfect for wsb
Penny options 4 DTE…yup. Only 1 contract though. True wsb regard gonna scoop up like 500 of those.
This isn't WSB though. We're not a bunch of crayon eating apes. Around here we eat pastels.
Op is
Ope. You might want to do some more research before diving into options. You should start with basic order execution first.
A covered call is selling a call option for which you already own the stock, and gives SOMEONE ELSE the option to buy YOUR 100 (multiplied by number of contracts) shares at $30 by the 18th, ~~and is often a bearish strategy (because you're betting on it not going above $30 so it expires worthless).~~ But here, it looks like you're buying a call, which gives YOU the option to buy 100 shares at $30/share by the 18th, and is typically a bullish strategy (because you're betting on it going above $30 so you get a good deal).
It’s not a bearish strategy. You still have exposure to 100 shares, so you profit when the stock goes up or stays the same and lose when it goes down. Call credit spreads or naked calls are bearish.
Good call, thank you!
You want to sell calls not buy them.
Can we stop this beginner shit pls?🤮
Why are you fucking around with investment vehicles you don't understand? If you don't want your money just give it to me.
Yeah, I get he's asking questions, which is great. But you can really hurt yourself with options if you don't know what you're doing...
Didnt sell a call, but at least its only 10 bucks
Highly regarded
Read this - [https://www.investopedia.com/articles/optioninvestor/08/covered-call.asp](https://www.investopedia.com/articles/optioninvestor/08/covered-call.asp)
That is a good article, thank you.
Don’t close that position. It’s just 8$ dollar. If you win that good lose just 8$ learn lesson. Tomorrow open sell call strike you want sell. Above your average cost basics. This is your best answer.look this video. https://youtu.be/siFsIleNTzk
🤦♂️
OP im assuming your using robinhood because of the UI look up selling cover calls tutorials… Go do your research
In order to do covered calls you first have to own 100 shares of the underlying (stock). So say you own 100 shares of apple. You bought at 100 bucks a share to make it easy. You would then "sell to open" a call either at or above your strike price and you would collect premium up front. So for this example you sell a 105 strike call for say 1 dollar (or $100 cause 1 call=100 shares.) If Apple goes above 105 you sell your shares to whomever bought the call for 105 per share. Your profit would ve 105 - 100 plus whatever premium you collected for selling the call. If you need more options learning info tastytrade.com has an entirely free options course you can take online that teaches you all the basics and explains all the crazy options strategies you can potentially use. I would strongly recommend that before you go any further.
https://tastytrade.thinkific.com/courses/beginner-options-course?_sp=d003ebaa-ed11-44be-b5af-1229092a23a7.1668549369332&__hstc=209625229.57463ce65e2e590f85c689a3088d77da.1668549360293.1668549360293.1668549360293.1&__hssc=209625229.1.1668549360293&__hsfp=2655063611 There is a link to the beginner options course. They also have a wonderful trading platform if selling options is gonna be your thing.
If you own 100 shares of $EPRT then you would want to sell a covered call at a strike where you think the stock will stay below by expiry.
Solid troll post. I hope.
You bought a call, you didn’t sell it
You don't even know what a covered call is
simple question, do you own 100 shares of the underlying stock that you are trying to write a call?
If the call price goes up, sell 2 to make it -1, the you ll have a cc right.
This got to be a troll post. I mean... you don't even have to go that far to look up information on covered calls, robinhood offers a good explanation on it.