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    In USA stocks (options) how to carry out stocks renting

    covered call options

    0  Views: 1381 Answers: 1 Posted: 5 years ago

    1 Answer

    Don't know what you mean by "carry out". If you have a stock that has calls available, you can write "covered calls". Let's say you have the stock, and the price is $45/share. You want income, so you sell a call contract at $50/share. 1 contract = 100 shares. You collect the premium, i.e., the price of the call, and it's yours to keep. You can have the stock "called away" from you at $50, meaning you have to sell it at that price.  The only possible downside is that you can't get more than $50 for your shares; it is a contract for $50.



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