To unlock Option Combo feature, please leave us a message such as "APPLY OPTION COMBO"to get exclusive access. We'll review your account status and get back to you soon.
We are currently supporting Option Combo like Covered Call and Covered Put, which requires less initial margin as it takes the underlying stocks in your portfolio to cover the position.
Some Basics and Tips
Covered Call
Selling a covered call means opening a contract that gives you the obligation to sell the stocks you already own at the strike price. In exchange, you receive an upfront premium.
If you’re planning to hold the underlying shares in the mid-to-long run, meaning you have a neutral-to-bullish outlook, selling covered calls can be a way to help generate additional income from the premiums.
Covered Put
Selling a covered put means opening a contract where you have the obligation to buy the stocks you shorted at a strike price and close out your short positions. In exchange, you receive an immediate income upfront from the premium like Covered Call.
A covered put is a bearish strategy that is essentially a short version of the covered call
A little heads up:
When closing a position in either Covered Call or Covered put, it is recommended that you close the option first and the underlying stocks second. Closing stocks first may result in a higher margin in your account or even triggers margin call.
Before we grant you combo access, you can continue placing regular single options as you like.
Once again, to unlock Option Combo feature, please leave us a message such as "APPLY OPTION COMBO"to get exclusive access. We'll review your account status and get back to you soon.
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