How Much Money Do You Need for Covered Calls?

To sell covered calls, you need to own 100 shares of a stock. Your minimum capital depends on the stock price.

Minimum Capital by Stock Price

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| Stock Price | Capital Needed | Example Stocks | $5-15$500-$1,500F, SOFI, NIO $15-30$1,500-$3,000INTC, BAC, PFE $30-50$3,000-$5,000T, VZ, KO $50-100$5,000-$10,000DIS, AMD, PYPL $100-200$10,000-$20,000AAPL, NVDA, GOOGL | $200+ | $20,000+ | MSFT, META, NFLX |

Best Stocks for Small Accounts ($1,000-$5,000)

  • Ford (F) - ~$1,200 for 100 shares
  • SoFi (SOFI) - ~$1,500 for 100 shares
  • Intel (INTC) - ~$2,400 for 100 shares
  • Pfizer (PFE) - ~$2,800 for 100 shares
  • Bank of America (BAC) - ~$4,000 for 100 shares

    • How to Start with Less Capital

  • Start with cheaper stocks - F, SOFI, T
  • Use Poor Man's Covered Calls - Buy LEAPS instead of shares
  • Save up for quality stocks - Better to wait for AAPL than rush into junk

    • Realistic Starting Points

  • $1,500: Can sell covered calls on F, SOFI
  • $5,000: Can diversify across 2-3 cheaper stocks
  • $10,000: Can trade quality stocks like AMD
  • $25,000+: Full flexibility with most stocks