Grouping Covered Calls

One popular strategy traders use to earn some extra profit from their long stock positions is a covered call. Wingman can help traders manage their covered call positions, especially if a trader opens and closes multiple covered calls on a long stock position over a period of time. Wingman will track the total credit received from all calls sold against a long stock position, showing how profitable the strategy is over a period of time. To track covered call performance, it is important that you group positions correctly in Wingman as Wingman may not automatically group long stock and short calls together if they are opened and closed at different times.

Adding and Grouping a Covered Call

Covered calls typically start as a long stock position held in your portfolio. In the example below, the portfolio holds 100 shares of GME, the perfect set up for a covered call.

To import and group covered calls, follow these steps:

  1. Import your short call transaction, either by importing a CSV file from your broker or manually inputting the transaction. When you do so, a Naked (Short Call) position will appear in the underlying next to your long stock.
  2. Click the + icon next to the Naked (Short Call), then click Actions, Move Leg into Existing Position.
  3. Click Here next to the Stock (Long) position.
  4. If successful, you will see a message stating Moved leg into position and the Naked (Short Call) position will have disappeared.

Once the positions have been merged, you may want to change the name of the strategy to show that it is a covered calls:

  1. Click the pencil icon next to the Stock (Long) strategy name. The Change strategy label window will open.
  2. Click the Select a strategy dropdown, select Covered (Call), then click Save Strategy
  3. The strategy will now show the more accurate name of Covered (Call).

Viewing Performance of a Covered Call

To see the performance of each leg of the covered call, click the + icon next to the Covered (Call) strategy. All short calls and long stock legs will be shown. This is a great way to see the overall performance of the strategy over time and through multiple rolls. As one call expires or is closed and the next is opened, be sure to group these positions together following the above steps.

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