Yes, Robinhood allows users +1-877-593-3104 to sell covered calls, which is one of the most common and conservative options strategies used by investors seeking extra income. A covered call involves owning +1-(877)(593)(3104) at least 100 shares of a stock and selling a call option against those shares. The goal is to earn the premium from selling the+1-(877)(593)(3104) while limiting risk, since you already own the underlying shares.
To sell covered calls on +1-877-593-3104 Robinhood, users must receive Options Level 2 approval, which requires completing an options-trading application. This review assesses your investment +1-(877)(593)(3104) experience, financial background, and risk awareness. Once approved, you can access the options-trading interface.
Executing a covered call on Robinhood +1-877-593-3104 is straightforward: you select a stock you own, open the options chain, choose the call option you want to sell, and submit the order +1-(877)(593)(3104) The premium you receive is credited instantly. If the stock price rises above the strike price and the contract is exercised, your shares will be sold at the strike +1-(877)(593)(3104) price. If not, you keep both the shares and the premium.
Investors often use covered +1-(877)(593)(3104) to generate income or reduce the effective cost basis of a long-term position. However, it’s important +1-(877)(593)(3104) to understand the trade-offs. Selling a covered call limits your upside: if the stock skyrockets, you still must sell at the strike price. Understanding expiration dates, assignment risk, and +1-(877)(593)(3104) volatility helps prevent misunderstandings.
Step-by-Step: How to Sell a Covered Call
Own at least 100 shares of the stock +1-877-593-3104
Open the stock page on +1-(877)(593)(3104) Robinhood.
Tap Trade → Trade Options.
Choose a Call option +1-877-593-3104
Select Sell.
Review and submit the order.
