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Covered Calls
I know you need a minimum of 100 shares to sell a call option but realistically how many contracts do you need to write to make it profitable after fees and expenses?
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It all depends on how much your trade commission cost and the selling premium you can receive. I currently pay $1.50 per contract to sell. I usually sell them if i can receive at least $25 per contract after expense. If I'm only receiving that much I expect the trade to expire worthless in 2 weeks or less so I can keep the full premium. I have done as little as 1 covered call and made it worth my while.
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Thanks. I will check and see what they charge. I have a few positions I will likely sell this year for tax losses so I was thinking I may as well generate some income on them while we wait to sell.