I'm looking to write covered calls on a stock that I own. If I write 1 options contract, what would my proceeds be? Let's ignore fees for simplicity.
Should I focus on the "Last" price of $3.96 (receiving $396), or the "Bid" price of $4.95 (receiving $495)?
Also, is it generally advisable when selling covered calls to set market or limit orders?
Understanding Fidelity Option Chain
byu/AvailableCold5926 inoptions
Posted by AvailableCold5926
1 Comment
When Last is well outside the Bid-Ask range, it usually means that it’s old and bogus. Which is what happens then there have been zero trades and OI is 1, as shown. You have to decide how low you’re willing to go below Ask. In your example, Last is at least from the previous trading day; if the underlying moved much at all from the previous close, it’s noise, not data.