The Traderszone Network

Published in TZ Latest News 3 November, 2017 by The TZ Newswire Staff

bid/ask spread on a covered call

Hello,

I am new to options. I am interested in a selling a covered call on a stock that I own. The bid/ask is $1.45/$2.00.

What is a realistic premium to expect? I’m not sure if I should be able to expect the full ask price of $2.00, or maybe something in-between the bid/ask prices ($1.75, etc.).

Thank you.