How to automatically buy back stock after a covered call?


I’m getting into covered calls, and wondering if I can set up an automatic purchase of the stock if it sells as the strike price of a covered call I sold.

For instance, I own XYZ at $100/share. My 100 shares are worth $10,000.

I sell a covered call with a strike price of $101, for $0.20, so $20 for the contract.

My stock goes up to $101, I make $100 capital gains, plus I made $20 on the contract.

But I want the stock, and believe it will go up even higher, plus it yields dividends, so I’m willing to buy it back at $101.10 immediately, even though the market price is still $101.00. This way I pay $10,110 for the shares that I just sold for $10,100, but I made the $20 on the covered call, so I’m up $10.

Can I create a chain of such sales and purchases to create passive income while maintaining my position on the stock? This seems great because my original investment was $10,000 and I wind up with something that is worth $10,100, plus the $10 profit from the whole transaction.

Forgive me if my verbiage is sub-par, I’m just getting into this stuff so I don’t have all the cool dickhead lingo down yet


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