Dec 21, 2017
In this episode, we are looking at a covered call, but with a twist: a credit spread around stock you already own. You can find more on page 80 of The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.
Specifically:
- FedEx announced earnings on 12/20, was up 3.5% after the announcement
- It hit the all-time high on 12/20
- What are the benefits of doing a credit spread instead of just a covered call?
- Setting up the trade: picking expiration (and why that date)
- Selecting strikes
- What is the approach?
- What is the risk?
Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.