Options 101 - High Premium (up front money)
Some of the best options premiums in the market right now seem to be Hecla Mining Company (HL). I have been buying and selling covered calls on HL for the last +12-months.
Here is an example of buying the stock today at market, and selling a covered call at market:
If you buy HL today at $5.88 and sell options with $6 strike in June (57 days) for $0.42, you will make 7% today. If the stock hits the strike price of $6 and the option is actioned you will make an additional 2% profit on the stock.
About Me
- Markets and Economy
- I have been investing in mutual funds and stocks for over 10 years. In the last 5 years I have started some small amount of options trading. I try my best to keep up to date with global economics, and economic conditions. I am not a financial expert, nor am I selling any services. This blog is intended to share with friends.
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