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G/L = (amount sold (for underlying security) - amount paid (for underlying security))+ premium paid
There are commercial tools available to help you with covered call trade selection and covered call portfolio management. They will also perform the profit/loss calculations. See www.borntosell.com as an example.
What else can I help you with?
How do you calculate gain and loss on a stock call option?
You take the whole value. For example: You bought the call for $1 which x 100 equals $100. You then sold it for $2 which x 100 equals $200. Take $100 from $200 and you are left with a gain or $100.
What is the difference between writing a covered and a naked call option?
"Writing", "Selling" and "Granting" are all terms that can mean Going Short the option."Writing a Naked Option" is simply going short the option. It seems super risky because when you Grant Options your profit is limited to the Option Premium that you receive for the Option, yet your risk is unlimited.Naked Call - Profit Limited to Premium Received. Risk is Unlimited, if the market keeps rising, you keep losing.A "Covered Call" as you can infer from the name offers a degree of safety over the Naked Call. In a covered call you limit the risk by buying the underlying security. SO you now have two open positions:Short the CallLong the SecuritySo for example, you buy 1,000 shares of IBM at $50.Then you SELL a Call option to buy 1,000 shares of IBM at $50. You receive $3,000 for the option.So in essence, you have $3,000 (the premium received) in your account, BUT don't celebrate too quickly because you're on the hook should IBM Rise.However, the good news is that IF the market goes against you, you gain on the shares of IBM which pay off the loses on the call. Viola, you are covered.Covered Call - Limiting the risk factors inherent in option granting, naked selling or writing utilizing the underlying securities.- - - - -The difference between writing a covered and a naked call is simple.When you write a covered call, you own the underlying stock. There are some hedging strategies using puts and calls together, and you can also "lock in" profit with a covered call.Example: you own a stock you know goes up and down in price on a cyclical basis (meaning it has a pattern of ups and downs that repeats itself year to year) that you paid $20 for. You think the highest it's going to get is $45, so you write a covered call at $45. You also think it will hit $20 in six months, so you buy a one-year put at $20...but that's not part of this discussion. If it actually does hit $45 you get a nice chunk of change dropped in your brokerage account and your stock becomes someone else's problem.When you write a naked call, you don't own the stock and you believe it will never rise to the call's strike price. In that case your profit is the premium on the option. If it does you've pretty much had it unless you've got your call hedged with another call.
How many calorie make one pound?
If you calculate your BMR this will tell you how many calories your body needs a day to maintain its weight. If you then consume 500 extra calories a day for a full week you should gain around a pound in weight. So I would say the answer is 3500 calories.
When do you sell a call option?
There are a couple of times you'd do it. The first is if you want to automatically lock in a gain. Let's say you have a stock you bought at 15, and you want to double your money on the investment. So you sell a call at 30 with a long expiration date...oh, maybe a year. If at any time the stock crosses the $30 threshold, you exercise the option. You can also use short calls and long puts (sell a call, buy a put) as a hedging strategy. And then there's the call you sell when you just want to make money by collecting premiums--you sell a call at a higher price than you think the stock will reach, and hope it doesn't go that high.
Differences between Forwards and Futures?
Forward contracts are very similar to futures contracts, except they are not marked to market, exchange traded, or defined on standardized assets. Forwards also typically have no interim partial settlements or "true-ups" in margin requirements like futures - such that the parties do not exchange additional property securing the party at gain and the entire unrealized gain or loss builds up while the contract is open. A forward contract arrangement might call for the loss party to pledge collateral or additional collateral to better secure the party at gain. (Wikipedia)
What is the relationship between a regular call option and binary call option and a gap call option?
Regular call options have limited risk and unlimited upside gains while binary call options have limited risk along with limited upside gain.
How do you calculate gain and loss on a stock call option?
You take the whole value. For example: You bought the call for $1 which x 100 equals $100. You then sold it for $2 which x 100 equals $200. Take $100 from $200 and you are left with a gain or $100.
How do you calculate capital gain on property?
To calculate capital gain on property, subtract the property's purchase price from the selling price. This difference is the capital gain.
What are the stock to buy options used for?
Stock options can be used for various purposes, including speculation, hedging, and generating income. Speculators use options to gain leverage and potentially profit from short-term price movements. Investors may also use options to protect their existing stock positions against potential losses by hedging. Additionally, options can be used to generate income through covered calls, where investors sell call options against their existing stock holdings.
How do you calculate the capital gain on the sale of a house?
To calculate the capital gain on the sale of a house, subtract the original purchase price and any expenses related to the sale from the selling price. The resulting amount is the capital gain.
How do you calculate capital gain for tax purposes?
To calculate capital gain for tax purposes, subtract the original purchase price of an asset from the selling price. If the selling price is higher, the difference is considered a capital gain and is subject to taxation.
How do you calculate the current gain of a transistor JFET?
FETs don't have current gain as no current flows through the gate. The gain of a FET is a voltage gain and is called mu.
When you make an economic choice you except to gain something from it what do you call this gain?
Profit.
How do you calculate heat gain for air conditioning?
Hire an Engineer
How do you calculate RC phase shift oscillators gain?
29
How do you calculate the gain of Kinetic Energy?
The gain in kinetic energy can be calculated using the equation: ΔKE = KE_final - KE_initial, where KE is the kinetic energy. Simply subtract the initial kinetic energy from the final kinetic energy to determine the gain.
What do you call a monetary gain?
CURRENCY or MONEY
