Practice Writing a Covered Call

Try it in a Practice Account

Please keep this window open. You will want to refer back to it as you perform this transaction. The following instructions lead you through the steps to perform in the main browser window.

In this example, you will write 10 out-of-the-money option contracts on RBC common shares (ticker RY). For this you must own 1000 RY shares in your practice account.

Write a covered call

1. Click Get a Quote under Place an Order
2. In the window enter RY, select CDN market and click Get Quote
3. Click Options
4. Choose a call option from the column on the left with a Strike Price that is less than the Last Price
5. Click Sell
6. For Account #, choose a Practice Account from the drop-down menu and click Go
7. For Action choose Sell to Open, select the Call button
8. For Contracts enter 10
9. Symbol, Market, Expiry Month and Strike Price data will be pre-populated
10. For Price choose Market or Limit
11. If Limit is chosen, enter a Limit Price (Note: You can enter any price you wish, but often investors choose a price that is above the most recent Bid Price)
12. Enter a Contact phone number
13. Click Continue
14. Click Confirm on the Confirm Transaction page
15. Click Check my Orders under Place an Order to monitor your trade status
16. Once the order is filled, click on Activity History under Place an Order to see the transaction recorded in your account.