Is there a technical term for either of these two trades??

C

Cabin111

These are basic covered call option trades...

Buy 200 shares of Coke (KO) at $50. Do one covered call at $52.50 June 21...And another covered call at $52.50 Jan 22.

Second scenario...Buy 200 shares of Coke (KO) at $50. Do one covered call at Jan 22 $55. and the other covered call (sell to open) for Jan 22 at $52.50.

For simplicity, we will either let all the options expire worthless or get call away...With no buy backs.

Any terms come to mind??
 
After the positions are open, the broker will treat them as individual covered calls regardless of how they were opened.

***Hope that's what you were wondering. :-)
 
BKR88 said:
After the positions are open, the broker will treat them as individual covered calls regardless of how they were opened.

***Hope that's what you were wondering. :)
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No, more doing the different spreads...Are there basic technical terms I would find in places like Investopedia?
 
Cabin111 said:
No, more doing the different spreads...Are there basic technical terms I would find in places like Investopedia?
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Don't think it has a separate name as it's just 2 covered calls with different strikes.
Other combo option trades have names but I don't think this is one of them but I'm not too big on names. :-)
 
IronFist said:
Why sell calls so far away? Who knows if the stock will be anywhere near there at that time?
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If the stock doesn't get to the calls sold he keeps the money collected by selling them.
If the stock closes above the strike price he'll have his stock sold at the strike price.
 
zdreg said:
You didn't answer the question from Iron Fist.

IronFist said:
Why sell calls so far away? Who knows if the stock will be anywhere near there at that time?

Likely you don't understand the large risk in writing long term covered calls,
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Ahh...You talking to me?? I have written covered calls for about 30 years now. I know the risk/reward involved.
 
BKR88 said:
If the stock doesn't get to the calls sold he keeps the money collected by selling them.
If the stock closes above the strike price he'll have his stock sold at the strike price.
More...
You didn't answer the question from Iron Fist.

IronFist said:
Why sell calls so far away? Who knows if the stock will be anywhere near there at that time?

Likely you don't understand the large risk in writing long term covered calls,
 
It's the triple lindy. Well known.

Kidding. It doesn't have a name as far as I know but you can give it one. With the different times on the short calls maybe call it a holiday covered call. One now sold and one in the future like a present. Just being creative.
 
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