My strategy for covered call

[gooder]

I am planning execution of buying several hundreds shares of ABR. Look, ABR share price is going down. It may continue doing so. However, this stock has a 16% dividend rate. 5/16 will be the ex dividend date. I will buy 500 shares before 5/16 then sell in the money covered calls, and expect to get out in two weeks. Or, i will continue selling in the money covered calls to play safety

[gooder]

I am planning execution of buying several hundreds shares of ABR. Look, ABR share price is going down. It may continue doing so. However, this stock has a 16% dividend rate. 5/16 will be the ex dividend date. I will buy before 5/16 then sell in the money covered calls, and expect to get out in two weeks. Or, i will continue selling in the money covered calls to play safety

To calculate the rate of return, if 500 shares are purchased, you will receive dividends over $200, then your premium for selling covered calls will be around $300. So, the rate of return is 10% in two weeks !!

amazing! Right

[MCJ]

To calculate the rate of return, if 500 shares are purchased, you will receive dividends over $200, then your premium for selling covered calls will be around $300. So, the rate of return is 10% in two weeks !!

amazing! Right

ITM的靠会在5/15收盘时被靠买方执行，你拿不到分红的

[gooder]

Ofcourse the dividends will be given to you. Nobody would execute the call on the first day of purchase

[gooder]

If anyone buys 10,000 shares of ABR and sell 100 ITM covered calls, you will earn about $10,000 in two weeks.

[chistrong]

To calculate the rate of return, if 500 shares are purchased, you will receive dividends over $200, then your premium for selling covered calls will be around $300. So, the rate of return is 10% in two weeks !!

amazing! Right

没明白，能不能请楼主详细说说？dividend rate 16%, 假如现在股价大约10.7$, 500股的dividend不是应该500*10.7*16%=856？为啥是200$? 还有selling covered call 的premimum 300$是依据什么来定的？

[uws]

没明白，能不能请楼主详细说说？dividend rate 16%, 假如现在股价大约10.7$, 500股的dividend不是应该500*10.7*16%=856？为啥是200$? 还有selling covered call 的premimum 300$是依据什么来定的？

16% 是年化的股息率
一年发息四次，所以一次发息是200

[YWY]

To calculate the rate of return, if 500 shares are purchased, you will receive dividends over $200, then your premium for selling covered calls will be around $300. So, the rate of return is 10% in two weeks !!

amazing! Right

刚看了下股价，ABR现在10刀多。股价走势我不了解，但股票发利息这种公共消息，应该都反映在期权的价钱里了（正股股价也会有相应调整）。

其实为了简化讨论， 咱们可以不考虑上面说的，只考虑接下来这个（有可能发生的）情况就行：万一股价降了很多（比如降了2刀），那么利息和卖盖靠的钱不足以抵消正股上的浮亏。

我只是举了个例子，并不是说股价一定会降（或一定会降这么多）或怎么怎么样。只是用这个理论上有可能发生情况说明卖covered call 也是充满变数。

我也没有说大家该不该卖covered call，这里就是抽象讨论一下。

至于具体怎么交易，你钱你腚。

[直接投降]

刚看了下股价，ABR现在10刀多。股价走势我不了解，但股票发利息这种公共消息，应该都反映在期权的价钱里了（正股股价也会有相应调整）。

其实为了简化讨论， 咱们可以不考虑上面说的，只考虑接下来这个（有可能发生的）情况就行：万一股价降了很多（比如降了2刀），那么利息和卖盖靠的钱不足以抵消正股上的浮亏。

我只是举了个例子，并不是说股价一定会降（或一定会降这么多）或怎么怎么样。只是用这个理论上有可能发生情况说明卖covered call 也是充满变数。

我也没有说大家该不该卖covered call，这里就是抽象讨论一下。

至于具体怎么交易，你钱你腚。

同意. CC只是横盘时挣点蚊子腿, 下跌上涨时都不划算. 不过楼主已经魔怔了, 我们祝福他吧

[cboe]

同意. CC只是横盘时挣点蚊子腿, 下跌上涨时都不划算. 不过楼主已经魔怔了, 我们祝福他吧

lz肯定尝到了甜头，长时间的积累，积少成多。稳定复利成长，并不一定少赚。

卖call卖put，还是需要经验积累和技术分析，提高胜率和盈亏比的。。。。

[uws]

ITM的靠会在5/15收盘时被靠买方执行，你拿不到分红的

这个是关键， 你的股票会在ex div 前被call 走
你拿不到分红

[gooder]

这个是关键， 你的股票会在ex div 前被call 走
你拿不到分红

You don't understand option and I bet that you never traded option before/

[gooder]

lz肯定尝到了甜头，长时间的积累，积少成多。稳定复利成长，并不一定少赚。

卖call卖put，还是需要经验积累和技术分析，提高胜率和盈亏比的。。。。

yes. this is a covered call strategy to deal with a bearish stock.

[uws]

You don't understand option and I bet that you never traded option before/

https://www.reddit.com/r/options/s/FWvCKjBZD0
太阳底下无新事

[chistrong]

16% 是年化的股息率
一年发息四次，所以一次发息是200

奥，明白了

[chistrong]

https://www.reddit.com/r/options/s/FWvCKjBZD0
太阳底下无新事

结论是啥？到底会不会在分红前被call走?

[uws]

结论是啥？到底会不会在分红前被call走?

显然，楼主估计连American option 和European option 都搞不清

An American-style call option can be exercised at any time up to and including the expiration date. However, in practice, early exercise is rare and usually only happens under specific conditions.

⸻

Conditions Under Which Early Exercise of an American Call Makes Sense:
1. Dividend Payments:
• Most common reason for early exercise.
• If the underlying stock is about to pay a dividend, exercising just before the ex-dividend date allows the option holder to receive the dividend.
• Early exercise is optimal if the intrinsic value gain exceeds the lost time value of the option.