FreeCourseWeb.com

Option Trading: Manage Covered Calls and Cash Secured Puts

Roll, close or wait? Ring the register more than once on stocks and ETFs with puts, calls, dividends and capital gains.

Cash secured puts and covered calls offer you many ways to manage the outcomes of your trades as the contract approaches expiration.  Learn to use this flexibility to your advantage.

What you’ll learn

Course Content

Requirements

Cash secured puts and covered calls offer you many ways to manage the outcomes of your trades as the contract approaches expiration.  Learn to use this flexibility to your advantage.

 

Patricia Saylor, founder of Saylor Financial Fundamentals, has taught hundreds of novice investors and option traders from all over the world through 1:1 coaching sessions, Udemy classes, and her book, The Novice Investor’s Guide to Stocks, Funds, and Options.  She is a lifetime educator who understands how to break down complex concepts into bite-sized pieces, sequence information, and provide clear examples.

 

When you sell an option contract, as it approaches expiration, it may be in the money or out of the money.  Either way, and depending on your goals for the trade, there are several paths forward. With the information in this course, find the path that moves you closer to your target.

 

Learn to decide whether doing something or doing nothing is the best course of action.  You may wait for the contract to expire and let the passage of time work for you or roll a position out to a later date for more income.  Sometimes you can even  buy to close a contract early to free up capital and lock in the majority of your gains in a short amount of time.

 

This useful course is designed to be a follow-up to two Novice Options Traders courses, How to Sell Cash Secured Puts; Safe Options Trading and How to Sell Covered Calls; Safe Options Trading Strategies.  But if you already confidently use those two strategies, go ahead and dive in here!

 

  1. Learn the formula to calculate projected annualized returns on contracts you are considering selling, rolling or closing early.
  2. Make an apples to apples comparison of your choices when selecting strike prices and expiration dates.
  3. Understand the relationship between share prices, and extrinsic and intrinsic value to help you plan your trade adjustments.
  4. Know your breakeven point.
  5. Incorporate dividend information as you select expiration dates or decide whether to allow a contract to be assigned.
  6. Develop a useful spreadsheet to keep track of your long-term campaigns and support your decision-making.

Review questions and homework exercises help you put your new knowledge into practice.

 

Final Project

By the end of this 90-minute course, you’ll be ready to set up your own custom spreadsheet and analyze this hypothetical trade!

Trade Setup Description:

 

Last month, the share price was $77.

 

Assignment and Questions

Try your hand at this analysis, and find the answers at the end of the course.