tag:blogger.com,1999:blog-4759468628055368786.post1312166597027700962..comments2023-10-20T07:35:48.232-06:00Comments on Investing Pursuits: New Covered CallInvesting Pursuitshttp://www.blogger.com/profile/01851866027370474576noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-4759468628055368786.post-87435815027777080152015-12-25T20:59:20.500-07:002015-12-25T20:59:20.500-07:00Daniel Austin,
Interactive brokers require $10000...Daniel Austin,<br /><br />Interactive brokers require $10000 to open an account. I do not have that right now, and do not want to transfer all my current holdings over there right now. <br /><br /> It is difficult to sell options here in Canada that is for sure. I am surprise how low TD option premiums are. Seems like an investor has to sell in the money options for calls or puts to make any have decent premium. First world problems though, as it could be worse. Investing Pursuitshttps://www.blogger.com/profile/07276747402458953430noreply@blogger.comtag:blogger.com,1999:blog-4759468628055368786.post-69524119899779268432015-12-25T20:54:39.314-07:002015-12-25T20:54:39.314-07:00DivHut,
Thanks for dropping by. It is difficult t...DivHut,<br /><br />Thanks for dropping by. It is difficult to sell short term options up here in Canada, as the level of interest is very low compared to the US. <br /><br />If an investor has an account with interactive brokers, the commissions are near $1.00 and they do not have a assignment/exercise fee like I have. Some of the other brokers in Canada have higher assignment/exercise fees than I have.<br /><br /> Interactive brokers, at least up here in Canada, an investor needs $10000 dollars to open an account. IB have cheap commissions on options and there is no assignment fee that I know of. <br /><br />The downside to covered call is that the stock could go way up and your gains are topped. If the option is $0.01 in the money then it will be assigned at expiration. The same goes for selling naked puts. Investing Pursuitshttps://www.blogger.com/profile/07276747402458953430noreply@blogger.comtag:blogger.com,1999:blog-4759468628055368786.post-9041770576240172792015-12-25T08:56:49.239-07:002015-12-25T08:56:49.239-07:00IP, you should really consider opening an Interact...IP, you should really consider opening an Interactive Brokers account for your option trades. They charge about between $1 & $2 for option trades...keep more of your $! Given how horrible the spreads are on the MX, it's a wonder you get much premium at all after factoring in spreads + commissionsDaniel Austinhttps://www.blogger.com/profile/14192559092200828101noreply@blogger.comtag:blogger.com,1999:blog-4759468628055368786.post-79369085562565946862015-12-25T01:28:57.673-07:002015-12-25T01:28:57.673-07:00I really enjoy these covered call options updates....I really enjoy these covered call options updates. You are really whetting my appetite to jump on board the options train. You already own the stock, why not make additional premium. You bought at $47 so if it gets called away at $52 you profit there plus premium. I like how you break down the trade in your summary. Very easy to read/understand. Do you typically sell short term options?DivHuthttp://divhut.comnoreply@blogger.com