Covered call writing is a stock option strategy with primary goals of income generation and capital preservation. Most of us are conservative investors who use the power of education to […]
Vega: An Option Greek And How It Impacts Our Option Pemiums
Covered call writing generates monthly cash flow by selling short-term options. The main factor in determining the amount of this premium is the implied volatility (IV) of the underlying security. The […]
Implied Volatility And Our Premium Exchange-Traded Funds (ETF) Report
Our study of option trading basics and stock option strategies involves an analysis of implied volatility. This is the market’s forecast of the underlying security’s volatility as implied by the […]
Earnings Reports And Covered Call Writing In Our BCI Methodology
In our BCI methodology, our covered call writing strategy has several guidelines and one rule. The rule is to never sell a covered call option when there is an upcoming […]
Implied Volatility and Our Covered Call Writing Premiums
What makes some stock option premiums worth so much more than others? Let’s say we have two stocks, A and B. Both are trading @ $25/share. We look to sell […]
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