How to Write a Covered Call on the TD Ameritrade Mobile App - YouTube

Hi everybody. Today we're talking about how to write a covered call on the TD Ameritrade

Mobile app. Now, I'm using an iPhone today, so if you're using an Android device or a tablet,

it's going to look a little bit different. Now the first thing you need to do

is bring up the symbol of the underlying stock that you want to write the covered call on.

In this case, you can either click on the magnifying glass

in the upper-right portion of the page, or you can click on one of the symbols.

I'm going to click on Mircosoft. It will bring up Microsoft. Regardless

of which Microsoft page it comes up, click on Options in the upper portion of the page.

It will list different months, and you can look at these months, and you can open

or close these months by clicking on the little down arrow on the far right side along the

option months. I'm going to click on December 13 options. Down the middle lists the strike prices:

to left are the calls, to the right are the puts. But we're going to write a covered call.

At this point, it depends on whether you own the underlying stock. If you already own the

underlying stock, all you need to do is sell a call option . So, what you do is you click on

the bid price of the call option strike that you want. If I want to select, for example, the 152.50

strike, what I'll do is I'll click on the bid price for the call, which is showing as 94 cents.

It will bring up the option. I'm gonna click on Trade the upper-right portion of the page,

and I'm gonna sell that call option. In this case, the assumption is that I already own

the underlying stock and by adding a short call to that, it will complete the covered

call. I can adjust the number of contracts, the price, the limit, or the expiration.

Once I'm ready to do that, I click on Review order in the bottom portion of the page. And once I

place the order, that will complete the covered call. What if I don't already own this stock

though? Then the process is going to be a little bit different. It will start out the same, in that

you'll select the stock, bring up the options, and bring up the appropriate expiration month.

But now what I'm going to do, is near the upper portion of the page where it says Calls and Puts,

I'm going to tap on that. And then I'm going to select Covered Call Buy-Write.

Finally, I click on Done in the upper-right portion of the page.

Now, what we've told the system is--I'm going to both buy the stock

and sell the call option. So, let's go back to that 150 covered call notice it says Covered 150.

And I'm going to click on the ask price to the right of the Covered 150. That currently shows

as 147.30. That will bring up an order ticket, and it'll show that I'm both buying the stock

and selling the option. Double-check the number of contracts, the price,

and the expiration. If you want to change any of these fields, click on the up or down arrow,

to the right or left of the particular item that you want to change. For example,

if I want to change the number of contracts here from 1 to 2, I'm going to click on the up arrow,

just to the right of the number 1. That changes the number of contracts.

Once the order looks sufficient, I'm going to click on Review order at the bottom of the page,

and then it gives me one last chance to review this order.

Finally, click on Place order, once you want to place the trade.

That's how you write a covered call on the TD Ameritrade Mobile app.

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