in this video you will learn how to sell
covered calls or rent out 100 shares of
stocks or etfs that you already own that
are tradable on a trade in under one
minute no introductions no silly fluff
like it's straight to the content let's
go step one buy 100 shares of a stock or
etf note you must have 100 shares at
least to sell a cover call if you want
to skip right to selling a covered call
on e-trade please use the timestamp that
you'll see somewhere here um because you
already own or have 100 shares or know
how to do this let's buy 100 shares of
ticker symbol nly annalee because it's a
great dividend stock and in my opinion
it is undervalued type in the ticker
symbol under symbol and press buy at the
right hand corner
under action click buy
quantity 100 price type
limit
which is the maximum price you're
willing to pay for one share
type in the maximum price that you are
willing to pay i usually like to do a
little bit about two cents over
what the market price looks like under
duration click good for day
now check the estimated total cost at
the bottom uh just to double check your
work
then click preview order click place
order and now make sure this order is
executed here
now we're going to sell one cover call
otm or out of the money
click trading click options up at the
top enter your ticker symbol mine is nly
now look to the right of your screen you
will see all of the prices you can
generate for renting out your shares as
long as it's after 9 45 a.m
go to positions
one should be in parentheses if you
already have or own 100 shares look at
your average price paid mine is 7.61
we want our strike price to be higher
than our average price paid under select
a strategy click call
under action click sell open
under quantity click one
under type click call
under strike make sure the price is
higher than your average price paid and
a price you don't think the stock will
go to before the expiration date ideally
i would like eight dollars or nine
dollars because i don't think the share
price will go much higher in the short
term the lower the strike price usually
the higher the estimated proceeds you
get go to expiration this is how long
you will rent out your shares this is
totally up to you usually the longer the
expiration date the more estimated
proceeds you get
i usually sell monthly cover calls at a
strike price i don't think the share
price will get to so basically i do this
each month to collect my rent for simply
owning shares go to price type click
limit
under limit price type in the bid under
duration click good for day and preview
order
click place order and you will receive
the estimated proceeds when the order is
executed
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