How to Sell Call Options Covered Calls ; Safe Option Trading

Learn options trading for beginners, boost returns when you sell stock, invest in the stock market, minimize risk

Created by: Patricia Saylor
Teaching Novice Investors

What Will I Learn?

• Review Introduction to Options Trading: calls vs puts, time decay, safe trading with collateral
• Use call options to get more money from stock you sell.
• Read an options chain.
• Understand the 100 multiplier.
• Select a strike price and expiration date that meet your goals for the trade.
• Select a strike price that ensures a profit if your call contract is assigned.
• Enter an order to sell a covered call.
• Understand the difference between short and long positions.
• Understand the "moneyness" of your short call.
• Know what to expect when your short call expires.

Requirements

• Students should have a basic understanding of the stock market. (If you are not familiar with basic stock market terminology, I offer an introductory course to get you started.)
• Know how to buy and sell shares of stock using a limit order. (I also offer a low-cost course on this topic.)
• We will review basic options concepts at the beginning of the course, but if you are completely new to options, you might want to first take my Novice Investors: Introduction to Options Trading course.
• Students who are completely new to options and trading may also want to start with a paper trading account.
• I recommend students learn to sell cash secured puts first, before selling covered calls.
• Have a real or simulated account available to apply your new knowledge and skills.

Target audience

• Investors who want to learn more about options.
• Experienced investors who want to use options to boost their returns.
• Investors who want to manage their risk with safe options strategies.