First Covered Call

R

RC253

Hello everyone! Brand new here and to options. I would like to do my first covered call option on AAL. My cost per share is $15.32. Can anybody advise on best strike price and expiration? My thoughts are $17 and Feb. 19th. Thanks!
 
caroy said:
Sell the March 5 $19 calls @ $0.45 and then manage at 21 days DTE.
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You can really do any variety you like. For me with the covered calls I like to give the stock room to run if I don't mind being called away. At 19 you're up 300 plus on the stock plus the $45. I put in a GTC to buy back the call at 50% max profit and then just reestablish the position another 45 DTE and repeat. When I think it's run enough let it be called way. Gives me a longer hold maybe a chance at a dividend if it pays one. Not so much on the airlines these days.
 
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