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Tag Archives: gap up
technical analysis for covered call writing

Technical Charts: A Picture is Worth 1000 Words- A Real-Life Example with The Wendy’s Company (NASDAQ: WEN)

Technical analysis is one of the 3 screens we use for stock selection when selling options. The other two are fundamental analysis and common-sense principles (like minimum trading volume). In […]

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technical analysis for covered call writing

Price Charts Tell a Story and Provide Guidance in Formulating Our Investment Strategies

Technical analysis is one of the critical tools available to us in selecting the best stocks for our option-selling strategies. Price charts are much more than a sequence of dots […]

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covered call writing and earnings reports

Earnings Reports and Rolling Options

When we sell a covered call and share price rises dramatically, there is a tendency to roll up in order to capture additional future share appreciation. The most common reason […]

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covered call writing and earnings reports

Avoiding Earnings Reports: Two Common Sense Perspectives

Never sell a covered call option or a cash-secured put for a stock with an upcoming earnings report. This is one of the most important rules in the BCI methodology. […]

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using cash-secured puts to buy a stock at a discount

How To Use Puts To Buy A Stock That Has Gapped Up

Mastering both conservative option selling strategies, covered call writing and put-selling will allow us to maneuver our way through most market situations. This past Wednesday, May 27, 2015 several of […]

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Unusual options activity and covered call writing

Unusual Options Activity: Speculation or Cheating?

Covered call writers are average retail investors looking to generate monthly cash flow in small but consistent increments and then compounding those profits. In time, it could lead to financial […]

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Exit strategies for covered call writing

Covered Call Writing: Generating Additional Income When A Stock Price Gaps Up

Mastering option trading basics includes incorporating exit strategies into our portfolio trades. These opportunities present themselves both when a stock prices declines and accelerates. Recently, a premium member presented me with […]

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