Share renting/covered calls

[david clarkson]

just wondering if others have made great success on share renting / covered calls

 

[village idiot]

in before wayneL;



https://www.aussiestockforums.com/forums/showthread.php?t=20747

 

[sydneyLAD]

Renting your shares

How exactly do you exercise the covered call option to rent out your shares? I understand the logic behind it, but don't understand HOW to do it.

People say it's like renting out your home, but to rent out your home you advertise it on certain website like domain or realestate, or through a real estate agency. How do you rent out your stocks/shares? Is it done through your brokerage agency? An independent company?

If anyone has any experience with covered calls or can shed some light on this it would be much appreciated.

Happy new year!

 

[sydneyLAD]

Renting your shares (covered call option)

How exactly do you exercise the covered call option to rent out your shares? I understand the logic behind it, but don't understand HOW to do it.

People say it's like renting out your home, but to rent out your home you advertise it on certain website like domain or realestate, or through a real estate agency. How do you rent out your stocks/shares? Is it done through your brokerage agency? An independent company?

If anyone has any experience with covered calls or can shed some light on this it would be much appreciated.

Happy new year!

 

[wayneL]

Re: Renting your shares

How exactly do you exercise the covered call option to rent out your shares? I understand the logic behind it, but don't understand HOW to do it.

People say it's like renting out your home, but to rent out your home you advertise it on certain website like domain or realestate, or through a real estate agency. How do you rent out your stocks/shares? Is it done through your brokerage agency? An independent company?

If anyone has any experience with covered calls or can shed some light on this it would be much appreciated.

Happy new year!

Use the search function as much here on this topic.

But 'share renting' is an appalling misnomer. Covered calls is nothing at all like renting out an asset.

https://www.aussiestockforums.com/forums/showthread.php?t=20747

 

[brty]

Re: Renting your shares

SydneyLad, instead of just throwing out a lot of questions, perhaps you could use the search function and read about some of the topics.

A quick search for "covered calls" returns a plethora of threads to read.

edit, beat me to it Wayne...

 

[sydneyLAD]

Re: Renting your shares

SydneyLad, instead of just throwing out a lot of questions, perhaps you could use the search function and read about some of the topics.

A quick search for "covered calls" returns a plethora of threads to read.

edit, beat me to it Wayne...

I searched and read. Does not answer my questions.

 

[wayneL]

If you'd read, you would see that renting has nothing to do with covered calls.

When you write a covered call, you are selling the right for the call buyer to BUY your shares at a set price on or before a set date. You receive a premium for this to compensate you for opportunity risk.

It is not renting.

 

[SuperGlue]

IB have this "Stock Yield Enhancement Program allows you to lend your fully-paid stock shares to Interactive Brokers in exchange for cash collateral."

http://www.interactivebrokers.com/en/index.php?f=shortableStocks&p=stockYield

At the bottom, there is a link to further info/discussions.