I'm new and this is somewhat off topic, but I really need the answer to decide if using a collar makes sense with a particular stock I own. I already owned shares of a stock which is now $314. My cost basis or unit cost is $257 (because I bought it over time). If I sold a covered call using these shares at a strike price of, say $320, in 30 days, and it the stock went to $321 in 30 days, what happens to all of the value of my early shares a purchased before the $314? Do I get the capital gain for the lower priced early shares? Is that not too big a risk? Thanks.
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This is a pot of gold! Thanks Dan! Thanks Optionsplay!
Thanks for watching!
Thank you for the overview!
Thanks again!! I always learn something new or u engage me to think about things differently!!
Happy to hear that!
A fairly simple topic made unfathomable
I'm new and this is somewhat off topic, but I really need the answer to decide if using a collar makes sense with a particular stock I own. I already owned shares of a stock which is now $314. My cost basis or unit cost is $257 (because I bought it over time). If I sold a covered call using these shares at a strike price of, say $320, in 30 days, and it the stock went to $321 in 30 days, what happens to all of the value of my early shares a purchased before the $314? Do I get the capital gain for the lower priced early shares? Is that not too big a risk? Thanks.
Isn’t the covered call graph wrong? The stock line crosses the x-axis at 477.30 and the cc line crosses at 470.96, not as shown.
Thank you Dan, you are an outstanding coach.
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