Nov 19, 2016 | Investment Basics, Option Trading Basics, Options Trade Execution, Stock Investing, Stock Option Strategies
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...
Jun 11, 2016 | Exchange-Traded Funds, Investment Basics, Option Trading Basics, Options Calculations, Put-selling, Stock Option Strategies
Covered call writing and put-selling can be used in most market conditions including bear markets. In my books and DVDs, I detail the use of in-the-money call options (strikes lower than current market value), out-of-the-money put options (also lower than current...
Jun 13, 2015 | Exchange-Traded Funds, Investment Basics, Put-selling, Stock Investing, Stock Option Strategies
Exchange-traded funds (ETFs) offer covered call writers and put-sellers the advantage of instant diversification and generally have a lower implied volatility associated with them compared to individual stocks. Whether we are dealing with stocks or ETFs each security...
Sep 13, 2014 | Investment Basics, Option Trading Basics, Stock Option Strategies
Writers of covered calls and cash-secured puts use stocks or exchange-traded funds as the underlying securities. It is the value of these securities that give value to our option premiums. For example, we will buy back an option when share price moves down causing the...
Aug 10, 2008 | Covered Call Exit Strategies
Picture this: It’s on or near Expiration Friday and your stock or ETF (Exchange Traded Fund) is above the strike price. You know that if you do not act to institute an Expiration Friday Exit Strategy your stock will be assigned (sold). So what are the factors...