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technical analysis for covered call writing

Technical Analysis Indicators for Long and Short-Term Portfolios + Webinar Registration

Technical analysis represents one third of the stock screening process in the BCI methodology. The other two are common sense principles (referred to as “descriptive terms for long-term investing) and fundamental analysis. Reading price charts is as much an art as it is a science and there is no one right way to technically analyze […]

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Over-Trading Our Option Positions: Good for Brokers, Not Good For Us + Registration Open For Webinar

Exit strategies for covered call writing are essential for achieving the highest levels of success. In the BCI methodology, we have a series of guidelines that assist us in determining which position management techniques should be instituted and when we should consider them. Not taking appropriate action when responses to changes in our stock and option positions […]

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actively managed and passively managed mutual funds

Evaluating the Performance of our Mutual Funds and Financial Advisors

Utilizing a portfolio of mutual fund investments is a topic I have addressed in my book, Stock Investing for Students. Investing with these securities represents a longer-term investment plan than covered call writing and selling cash-secured puts. A significant number of retail investors use financial advisors to select various mutual funds for their portfolios in hopes of generating the […]

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Rolling Out-and-Up After Understanding the Math

Elite covered call writers understand the importance of position management in maximizing returns. As a result, I receive a significant number of inquiries regarding exit strategy execution. This article will highlight one such question I received from John which has two components to it. The main item relates to rolling-out-and-up, a frequently-used exit strategy in […]

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contract adjustments following reverse stock splits

Reverse Splits and Unreliable Options Chains

Stock splits are corporate events where the number of shares in circulation changes as well as the price -per-share. If we own 100 shares at $50.00 per share pre-split and the stock splits 2-for-1, then we will own 200 shares at $25.00 post-split. The value of our position ($5000.00) does not change.   What is […]

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covered call writing webinars

Executing Exit Strategies in a Timely Manner

After executing our covered call writing trades, we immediately prepare for position management opportunities…exit strategies. One of these strategies in our arsenal is the Mid Contract Unwind exit strategy. This is used when share value appreciates dramatically resulting in a time value cost-to-close of near zero. In other words, the option originally sold will be […]

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risk-reward profiles for covered call writing and put-selling

Comparing Covered Call Writing and Selling Cash-Secured Puts

An accepted myth is that covered call writing and selling cash-secured puts are precisely the same strategy. The reason this statement is generally accepted by many investors is that they have the same risk-reward profiles or profit and loss graphs:   In this article, other similarities will be discussed as well as some distinct differences […]

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buyingh back shoirt options

Cost To Close Our Short Option Positions: Calls and Puts

After entering our covered call writing or put-selling positions, we immediately prepare for possible exit strategy opportunities. All exit strategies begin by buying back the option, call or put. These position management techniques are used to mitigate losses, turn losses into gains and enhance winning positions to even higher levels. This is the reason we need […]

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Earnings Pre-Announcements: Overview and Practical Application

Covered call writers and put-sellers know that options should never be sold when there is an upcoming earnings report prior to contract expiration. This is one of the most important rules in the BCI methodology. The reason is the result of the inherent risk we are subject to from a disappointing report. Since we know […]

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covered cakll writing with the Dow 30 stocks

Using Multiple Premium Reports to Fund our Covered Call Writing and Put-Selling Portfolios

Stock and ETF (exchange-traded fund) selection is one of the three required skills needed to achieve the highest level of success when selling options. Covered call writers and put-sellers have varying degrees of personal risk tolerance and trading styles. As a result, over the years and based on member feedback, the BCI team has added […]

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