In our BCI methodology we favor Monthly or Weekly options for our short covered call writing positions. I am frequently asked why I don’t utilize LEAPS options (expire 9 – 24 […]
Selling LEAPS and Covered Call Writing
Posted on June 10, 2017 by Alan Ellman in Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
Poor Man’s Covered Call: Practical Application
Posted on October 1, 2016 by Alan Ellman in Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Stock Option Strategies
Covered call writing involves first buying a stock or exchange-traded fund (ETF) and then selling call options on those shares. Each contract we sell requires us to buy 100 shares of […]
Mechanics of LEAPS
Posted on November 14, 2015 by Alan Ellman in Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
LEAPS are long-term options that have expiration dates between nine months and two and a half years out. The term is an acronym for Long Term Equity AnticiPation Securities. Once […]
LEAPS and Covered Call Writing: A Review and a Hypothetical Example/ Contest Application
Posted on October 31, 2015 by Alan Ellman in Option Trading Basics, Options Calculations, Stock Option Strategies
A covered call writing-like strategy involves buying deep in-the-money LEAPS options and then selling short-term slightly out-of-the-money call options. Leaps become a stock surrogate. The term Leaps stands for Long […]
LEAPS As Stock Surrogates And Covered Call Writing
Posted on May 3, 2014 by Alan Ellman in Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
LEAPS are long-term options with expirations usually greater than 1 year. Some investors buy LEAPS instead of stocks to then write covered calls on this leveraged type of security. This […]
Stock Option Expiration Cycles: Beware Of Expiration Dates
Posted on May 25, 2013 by Alan Ellman in Investment Basics, Option Trading Basics
In the BCI methodology for covered call writing we use predominantly 1-month options. The reasons are as follows: Generate the highest annualized returns Allows us to avoid earnings reports, a […]
Using LEAPS Covered Calls to Increase Dividend Yield
Posted on May 4, 2013 by Alan Ellman in Option Trading Basics, Options Calculations, Stock Investing, Stock Option Strategies
Innovative covered call writers can develop ideas of implementing a strategy in unconventional ways. For example, we can invest in a money market or CD and perhaps not even beat the […]
LEAPS And Covered Call Writing
Posted on April 27, 2013 by Alan Ellman in Option Trading Basics, Options Calculations, Stock Option Strategies
Covered call writing entails buying a stock and then selling an option. But what if I buy a call option instead of the stock and then sell a call option […]
Covered Call Writing and Stock Option Expiration Cycles
Posted on April 21, 2012 by Alan Ellman in Option Trading Basics
When studying option trading basics, we learn that options expire on the third Friday of the month. In the BCI methodology we sell mainly 1-month stock options. When we view […]
LEAPS and Covered Call Writing
Posted on July 16, 2011 by Alan Ellman in Stock Option Strategies
Wait a minute! What if I buy a call option instead of the stock and then sell a call option on that option? I’ll be spending less money than outright […]
Podcast
- BCI PODCAST 121: What is a SPAC (Special Purpose Acquisition Company)?
- 120. Using the Nasdaq-100 Volatility Index (VOLQ) in Covered Call Writing Decisions
- 119. Establishing Our Cost-Basis for Long-Term Holdings
- 118. Adjusting Our Portfolio Mix to Achieve Diversification and Cash Allocation
- 117. When a Covered Call Strike Moves $1000.00 In-The-Money
- 116. How to Execute a Covered Call Trade with a Buy/Write Combination Form
- 115. Establishing Our Cost Basis When Rolling-Out-And-Up On 2 Different Days
- 114. The Poor Man's Covered Call Selecting the Best LEAPS Strikes
- 113. How to Select the Best Strikes for Collar Trades
- 112. Using Covered call Options and Stock Dividends in Low Interest Rate Environments
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Beginners Corner Enhanced & Updated
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Beginners Corner Selling-Puts
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