Option Trades Today

← Option Trades Today21 May · 4 min

Covered Call on Robinhood Stock

Covered Call on Robinhood Stock21 May4 min

Robinhood stock dropped from $120 to $75. Most traders would either hold and hope or cut the loss. Jamal bought it and immediately sold a call against it.

A covered call turns a stock position into an income trade. You buy the stock, sell an upside call, and collect premium that lowers your cost basis every single cycle.