Cat House

[Porgie Tirebiter]

I don't know what the ramifications of being in Canada are. Maybe it makes no difference.

You'll have to get permission from your broker who will require you to sign off that you know what you are doing. All you need is Level I. Don't even bother with higher levels until you gain some understanding. Once you see how stock price, time, and volatility affect options you can begin to think about higher levels, but for now don't go there.

The reason I even bring it up, is that you mention selling and buying lower. So if you are going to sell F at $13 anyway, sell $13 calls instead.

http://www.cboe.com/strategies/equityoptions/coveredcalls/part1.aspx