Hey guys, I just signed up and have a question.
Firstly, I have been buying up shares for over a year now and have only sold a couple. I hold big companies like TLS, CBA, BHP, ANZ etc..
I just applied for and was accepted as a Level 2 options trader with Commsec because I wanted to write covered calls. I have a basic knowledge as to how they work but I have not been shown and dont understand how to actually write a covered call on for example 1,000 BHP shares.
I have gone to the Trading section then > Orders > Sell > Options. Sounds good so far then I have to select an Option based on an executed price. ie:
Code C/P Expiry Date Exercise Price Bid Offer Last Last Traded
Time Volume Open Interest Contract Size
BHPJV8 C 28/01/2010 44 0.365 0.405 0.430 15:27:11 168 1,625 1,000
So I select this Option to sell on my 1,000 BHP shares then the form asks me to select a Limit Price???? I dont understand, I thought the Limit Price was the Exercise price which was already chosen when I selected the Option??
I didn't want to ring up Commsec and make myself look like a real dummy, so if anyone could explain (with detail) their last (or made up) covered call they wrote using Commsec that would be great.
PS: Nice forum!!