Learn covered calls, one lesson at a time.

Twenty short lessons that take you from "what is a covered call" to "I know exactly what I'm doing." Read in order, or jump to any topic you want.

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Delta & Strike Selection

Your MSFT Call Has an 80% Chance of Expiring Worthless

Here's a number that doesn't get explained enough: when you sell a covered call with a delta of 0.25, that option has roughly a 75% chance of expiring worthless. Not as a vague estimate — as a mathematical property of the option's price itself.