Скачать или смотреть Buy Back and Roll Covered Calls At Expiration (Profit or Loss Scenarios Explained)

DISCLAIMER:
I am not a licensed financial advisor. None of this is financial advice. I am just showing you what I am personally doing. If you plan to invest, please do your own due diligence. Thank you.

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Covered calls are a powerful options trading strategy for generating income, but what happens at expiration when the stock price is above or below your strike price? Do you let the contract expire, buy it back at a profit, or buy it back at a loss? In this video, I break down the three main scenarios for covered calls at expiration and explain exactly when you would buy back your covered call—either for a profit or a loss.

📌 Here are the three scenarios I cover step by step:

1. Share price below the strike price at expiration
If the stock price finishes below your covered call strike price, the option expires worthless. You keep your premium and your shares without needing to roll. This is the ideal outcome for covered call sellers.

2. Share price above the strike price but below your breakeven price
In this case, you can buy back your covered call at a profit. The option is in the money, but because of the premium you collected, you still walk away with gains. You may choose to roll out to a later expiration and continue collecting premiums.

3. Share price above your breakeven price at expiration
This is when you’d need to buy back your covered call at a loss if you want to keep your shares. Rolling the call allows you to maintain ownership of your stock while extending the trade, but you’ll give up some of the profit in the process.

By the end of this video, you’ll understand:

How covered calls behave at expiration

When you don’t need to roll your calls

When buying back covered calls locks in a profit

When buying back covered calls means taking a loss

How rolling can help you protect shares while continuing to generate option premium

How strike price, breakeven, and premium all work together

Whether you are brand new to options trading or already selling covered calls, this breakdown will give you a clear framework for making better decisions. Covered calls can generate consistent passive income, but knowing when to roll, when to buy back, and when to let contracts expire is crucial to managing risk and maximizing returns.

📈 Topics covered:

Covered calls explained for beginners

Strike price vs breakeven price

Buying back covered calls at a profit

Buying back covered calls at a loss

Covered call expiration scenarios

Rolling covered calls to keep shares

Managing risk with covered calls

Options trading for passive income

If you’ve ever wondered:

“When do I buy back a covered call?”

“What if my covered call is in the money?”

“How do I manage covered calls at expiration?”

This video will give you the answers in a simple, structured way.

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