• Australian (ASX) Stock Market Forum

Hello and welcome to Aussie Stock Forums!

To gain full access you must register. Registration is free and takes only a few seconds to complete.

Already a member? Log in here.

Share renting/covered calls

Discussion in 'Derivatives' started by david clarkson, Mar 30, 2011.

  1. david clarkson

    david clarkson

    Posts:
    1
    Likes Received:
    0
    Joined:
    Mar 29, 2011
    just wondering if others have made great success on share renting / covered calls
     
  2. village idiot

    village idiot

    Posts:
    273
    Likes Received:
    0
    Joined:
    Jun 18, 2010
  3. sydneyLAD

    sydneyLAD

    Posts:
    6
    Likes Received:
    0
    Joined:
    Dec 30, 2012
    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!
     
  4. sydneyLAD

    sydneyLAD

    Posts:
    6
    Likes Received:
    0
    Joined:
    Dec 30, 2012
    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!
     
  5. wayneL

    wayneL Rotaredom

    Posts:
    15,871
    Likes Received:
    375
    Joined:
    Jul 9, 2004
    Re: Renting your shares

    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
     
  6. brty

    brty

    Posts:
    928
    Likes Received:
    75
    Joined:
    Mar 5, 2008
    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...
     
  7. sydneyLAD

    sydneyLAD

    Posts:
    6
    Likes Received:
    0
    Joined:
    Dec 30, 2012
    Re: Renting your shares

    I searched and read. Does not answer my questions.
     
  8. wayneL

    wayneL Rotaredom

    Posts:
    15,871
    Likes Received:
    375
    Joined:
    Jul 9, 2004
    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.
     
  9. SuperGlue

    SuperGlue

    Posts:
    359
    Likes Received:
    17
    Joined:
    Nov 1, 2009
Loading...

Share This Page