How to Sell Covered Calls on Fidelity

Step-by-step guide to selling covered calls using Fidelity's trading platform.

Prerequisites

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  • Fidelity brokerage account
  • Options trading approval (Level 1 minimum)
  • Own 100+ shares of stock

    • Step-by-Step Instructions

    Step 1: Access Options Chain

  • Log into Fidelity.com
  • Go to Accounts & Trade > Trade
  • Select "Options" as trade type
  • Enter stock symbol

    • Step 2: Find Your Strike

  • Select expiration date
  • Review available strikes
  • Click on "Bid" price to sell

    • Step 3: Enter Order Details

  • Action: Sell to Open
  • Quantity: 1 (or number of contracts)
  • Order type: Limit
  • Price: Start at mid-point

    • Step 4: Review and Submit

  • Verify all details
  • Check that "Covered" is indicated
  • Preview order
  • Submit

    • Fidelity-Specific Tips

  • Use Active Trader Pro for better charting
  • "Trade Armor" shows covered call analysis
  • Set up custom option chains
  • Use "directed trading" for better fills