Using Strike Price with Robinhood & E*TRADE
If a stock moves past your strike, the option can be assigned — meaning you'll have to sell (in a call) or buy (in a put). Knowing the assignment probability ahead of time is key to managing risk.
Posted by
John ClarkeRelated reading
What Is Option Vega and How It Shapes Your Trades
Discover what is option vega and how it measures sensitivity to volatility. Learn to use vega to improve your covered call and secured put strategies.
A Trader's Guide to the Iron Condor Options Strategy
Discover the iron condor options strategy. This guide explains how to generate consistent income from range-bound stocks with real-world examples and tactics.
What is short call: A Practical Guide to Generating Income
what is short call? A concise guide to this income strategy, risk management, and how covered calls generate income.
Introduction
In the previous article we explored the main benefits from using Strike Price. In today's article we put those features to the test and we sell some contracts, and make some money.
If you missed it, go back and check that out: Introducing Strike Price →
Article coming soon...