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

[tayte]

These are basic covered call option trades...

Any terms come to mind??

It's called "The Double Fist". Also, are you "IronFist" in disguise? https://www.elitetrader.com/et/members/ironfist.43520/ ---> you???

 

[Cabin111]

I think I found something...

Calendar Spread
By
James Chen
Reviewed by
Gordon Scott
Updated Feb 13, 2021
What Is a Calendar Spread?

A calendar spread is an options or futures strategy established by simultaneously entering a long and short position on the same underlying asset but with different delivery dates.


In a typical calendar spread, one would buy a longer-term contract and go short a nearer-term option with the same strike price. If two different strike prices are used for each month, it is known as a diagonal spread.


Calendar spreads are sometimes referred to as inter-delivery, intra-market, time spread, or horizontal spreads.


Key Takeaways

• A calendar spread is a derivatives strategy that involves buying a longer-dated contract to sell a shorter-dated contract.
• Calendar spreads allow traders to construct a trade that minimizes the effects of time.
• A calendar spread is most profitable when the underlying asset does not make any significant moves in either direction until after the near-month option expires.

 

[Cabin111]

I think I found something...

Calendar Spread
By
James Chen
Reviewed by
Gordon Scott
Updated Feb 13, 2021
What Is a Calendar Spread?

A calendar spread is an options or futures strategy established by simultaneously entering a long and short position on the same underlying asset but with different delivery dates.


In a typical calendar spread, one would buy a longer-term contract and go short a nearer-term option with the same strike price. If two different strike prices are used for each month, it is known as a diagonal spread.


Calendar spreads are sometimes referred to as inter-delivery, intra-market, time spread, or horizontal spreads.


Key Takeaways

• A calendar spread is a derivatives strategy that involves buying a longer-dated contract to sell a shorter-dated contract.
• Calendar spreads allow traders to construct a trade that minimizes the effects of time.
• A calendar spread is most profitable when the underlying asset does not make any significant moves in either direction until after the near-month option expires.

I have done Exxon (XOM) covered calls at different dates/same price. I have also done silver (SLV) for different prices to expire on the same date...

Not that strange...

 

[IronFist]

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.

I know, but so far in the future, seems like a lot could happen, why would you be stuck with the stock for that long?

 

[IronFist]

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,

My reason for asking was because I want the answer furthermore!

 

[IronFist]

Ahh...You talking to me?? I have written covered calls for about 30 years now. I know the risk/reward involved.

I wanted to know the answer.

 

[BKR88]

I know, but so far in the future, seems like a lot could happen, why would you be stuck with the stock for that long?

Cabin111 is a long-term investor, not a trader. I also have calls sold on ETFs for Jan 2022.