What we are referring to here is selling in the money calls against stocks you are acquiring in this volatile time. For example, we like JPM, it’s currently trading at $106, so if you sell the June 6, 104 you’ll get some premium to the positive and yet have some downside protection during that time. So the 104 is selling for 2.90 per share , this gives you $106.90 if called away. If the stock goes below $104, your basis in the stock is $103.10.
All investing involves risk, so Options Dojo can make no warranties or guarantees regarding our Sensei’s selections. Invest with an awareness of your skills, experience and risk tolerance. Options are not suitable for all investors and people can and do lose money.