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Tag Archives: Buy-Write Combination Form
stop losses for covered call writing

Setting Stop Loss Orders for Covered Call Writing

After entering our covered call writing trades, we immediately go into position management mode. For most of us who started our stock investment careers buying and selling stock, this may include setting stop loss orders to mitigate losses when share price declines. For example, if we purchase a stock at $40.00, we may set a […]

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Covered call trades: the brokerage statement

Executing A Covered Call Trade: A Step By Step Look At Our Broker Statement

Executing a covered call trade and understanding the accounting procedures on our online discount broker statements can be confusing to the new option trader. I have recently received a few emails regarding this topic so I thought it would be useful to show an actual trade I made with KORS, a stock on our Premium […]

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Covered Call Trade Execution

Executing Covered Call Trades: The Buy-Write Combination Form.

There are two ways to enter a covered call position. The first is called legging-in where the stock is purchased and then the option is sold. Two distinct trades are executed. The second is known as a buy-write order where the security purchase and option sale is entered as one trade with a net debit […]

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