, the October Call at 18, for $0.40 per share for $40. Short term return is 2.3%. If the covered call is excercised at 18, then the total short term return is $40 plus $69 equals $109, or a 6.3% return.
This is an educational series to show the income generating potential of Covered Call Writing
. Please do not take this as financial advice. Options
involve an increased risk of losing money than owning stock. Appropriate research about options
is advised.
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