Covered call writers often talk about how they've written themselves into a negative cost basis. In other words, they've collected more in option premiums than they initially spent on the stock. Is it safe to say you have a negative cost basis? What is your true cost of the stock?
Please join my Facebook trading group at this link:
[ Ссылка ]
My web page is www.optionsAtoZ.com
Covered Calls: Can You Have a Negative Cost Basis?
Теги
optionsoptions tradingoptions strategiescallsputsoptions a to zstock marketinvestingopen intereststrike pricesetradederivativescovered callsdiagonal spreadsvertical spreadstime spreadscalendar spreadsbutterfly spreadsvolatilitytime decayoption risksquare root pricingstop ordersstop limit ordersflags and pennantsstraddlestrangledeltagammavegathetarhoblack scholesstraddlesstrangles