Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Covered Calls for Dummies Thread -- Ignore unavailable to you. Want to Upgrade?

To: ValueGuy who wrote (5128)	3/30/2011 10:16:27 AM
From: alanrs	Read Replies (1) \| Respond to of 5205

I don't know how the platform you are using characterizes it, but yes, you would be selling to open. With IB it's just a sell (with the 'to open' understood if you do not already own it). So it's just a buy or sell with the resulting net number of options contracts shown. The premium you would receive is whatever that contract traded at, net of commissions. I always use limit orders since the spread with options can be quite extreme (percentage wise) and the market makers will pick your pocket if you let them. So an order to sell 1 SPY 11 April 01 131 put for .31 would net you $31 minus the commission (typically $1 at IB). Weekly options are relatively new and I have not done much with them, although I did sell 1 SPY 11 April 01 Call (naked) this morning for .45 (net $43.99), just because I'm trying to get the hang of trading the index options on the weeklies. My version of practice trading. ARS