Did You Know


  • If you already own shares then arguably your risk does not change if you write an option over those shares.
  • If you are concerned that you will be exercised (and may not wish to because of capital gains etc) you could "roll" the option forward into a new contract and your shares are not sold.
  • Most options are not exercised
  • Writing covered call options over shares you own out performs just owning the shares.  See Fact Sheet below

I spoke with a young bloke recently [Aug 2018], Dan; a bushie, stockman, horse trainer and loves his dogs.  Dan works hard, on cattle stations, droving or breaking in horses.  He was visiting our house just before heading off to 'Burning Man' in the US for a holiday.  In conversation I was talking enthusiastically about option trading and My Covered Calls.  I asked does he know about shares?  “Yes” was the answer and my level of interest rose.  Dan "averages in" to build his portfolio.  From time to time when he has saved some cash, he buys a few more blue-chip shares and reinvests the dividends.  He can already see his wealth growing and knows that over time he will have a substantial nest egg in shares.  I showed him that many blue-chip stocks also have good option returns, 2% to 2.5% in a month.  Most of the time option contracts don't get exercised so a simple strategy when buying more shares is to 'write' a covered call option over the new shares and get paid the premium, and if Exercised at the end of the contract period then get what you paid for the shares back, keep the premium and reinvest even more money.

We also discussed that the cost of brokerage needs to be considered on relatively low value trades.  I showed Dan that all the brokerage costs can be entered into the ProWriter Trading Plan so the return Exercised or Not-Exercised can be noted.

If you have an existing portfolio then it may be worth keeping an eye on the option returns that are available for each stock you have; and writing a call option(s) further 'out-of-the-money' (OTM) reduces the likelihood of being exercised.  You can select the shares you own in the My Covered Calls reports, and ProWriter, and keep updated on the options available for those stocks.

When buying shares keep in mind if they a good optionable companies, that is, is there a return above say 2% Exercised or Not-exercise in a contract period of a month.

My Covered Calls is like having a covered call calculator that has a direct feed of live data from the ASX. The reports are automatically updated and the % profit calculated and instantly displayed for exercised or not exercised outcomes. This lets you to easily identify those options with 2.5% or better returns exercised or not-exercised. See for yourself.

The Buy Write is an options investment strategy in which an investor simultaneously buys shares and writes a call option contract over an equivalent number of shares. If the shares are already held from a previous purchase, it is commonly referred to as covered call writing. Buy Write is the most basic and widely used options investment strategy, combining the flexibility of listed options with share ownership.


MyCC Smart Report

Click to see live BHP, BSL & TLS sample smart report showing Not-Exercised and Exercise Returns. All Companies available in Members Area.

Subscribe To Receive FREE
Covered Calls Option Alerts


What are CALL Option Alerts?

We respect your privacy

Download ProWriter Trial

Our Team

Tony Osborn - Team of One


MyCC is provided as a service to its members. Small, niche, exclusive and operated since 2006.