Femtosecond posted:

I'm curious does anyone sell covered calls regularly? And additionally, not like in a daytrading context, but rather because they are hold the underlying shares for the long term, and are selling covered calls just for some extra income?

I have some positions in some stocks eg. AAPL, MSFT that I have no real plans on selling, and they just sit in my portfolio. I often think about selling covered calls on them. The premiums on OOM options wouldn't be much but it's still something I suppose.

I never do this mostly because I've never done it before and I'm scared I'll mess it up lol.

In general I have no interest in really selling the stock so if the stock price would rise I suppose I'd want to try to buy back the option rather than letting the options get exercised. If anyone in the thread does engage in this sort of covered call use is this what you do as well?

That being said I do want to sell some of these equities in 2023 for [insert various Canadian tax reasons] so it strikes me that I could sell a covered call for Feb '23 and worst case scenario I sell the stock I needed to sell anyway. Could be a good way to try it out.

Edit: Actual worst case scenario would be that the stock drops like a stone but that's more bad for me in general unrelated to the covered call though is there covered call implications here in that one is possibly hindered from panic selling a stock if they are somehow obligated to cover a call they've written? (it kind of seems like a theoretical issue in that in such a case where the underlying stock plunges, the covered call would be surely worthless and easy to buy to close?)