For the Wallstreet haters.
- Thread starter KINGOFSHORTS
- Start date
no he does not. i sell premium every month.that means i create option contracts .
its really not that hard. find out how an option contract is created. then create one and follow it looking at the outcome for both sides.
Haha man sorry nothing is clouding my mind and I understand what a covered call is. In the mind of the owner of a covered call, it is one position. He or she only is concerned if net position (long stock, short call) is profitable. He makes money, not loses money if the stock rises and the profit in the stock is greater than the loss in call.
WTF can't you simply get it into your head that a covered call (synth short put) is not fungible to the opposing side of that order ticket? That's zero-sum.
(all)Trading in terms of capital-creation is not zero-sum.
Short call offering, long call bidding. The call buyer is not trading shares on that ticket. You have a massive hang-up as OI is defined. And yes, you can make money with options alone and in combination with the underlying. Well, some of us, anyway.
the mind of the covered call seller is sometimes strange. i hear people all the time say covered calls are safe and naked puts will bankrupt you. when you point out they are the same you get all kinds of static.