SIE Exam Prep - COVERED CALLS. Series 7 exam & Series 65 exam too!

Описание к видео SIE Exam Prep - COVERED CALLS. Series 7 exam & Series 65 exam too!

Time stamp:
5:35 Breakeven in a covered call is stock cost minus premium 7. 335-7=328. -328 or
-335 +7= -328 or
$OUT335 $IN 7 = $OUT 328.
Net out 328 per share.
TAKE NOTE: Only time in a call not adding to get a breakeven.
8:02 Maximum gain is the breakeven to the strike price -328 +345= +17 points (17X1X100=$1,700) or
$OUT 328 $IN 345 = $IN 17 or
$OUT335 $IN7 $IN 345=$IN 17
11:00 Maximum loss is breakeven to zero. -328 to zero (328X 100=32,800) or
$OUT335 $IN7 $IN 0=$OUT328
TAKE NOTE: Unlike a naked or uncovered call, a covered call does NOT have UNLIMITED RISK! The risk in a covered call is definable.
14:00 Practice question

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