beginners corner
Tag Archives: limit order
Negotiating better option prices for covered call writing and selling cash-secured puts

How To Negotiate Better Option Prices Using The “Show Or Fill Rule” / $30 Rebate Expiring

Covered call writers generate cash flow by selling call options associated with a stock or exchange-traded fund. Our goals are to generate the highest possible returns with low-risk trades and that fit our requirement for capital preservation. The three required skills for achieving these goals are stock (or ETF) selection, option selection and position management […]

33 Comments Continue Reading →
bid-ask spreads and limit orders

“Negotiating” The Best Prices When Buying And Selling Options

Our covered call writing strategy involves both buying and selling options. Mastering our options trade executions can bring our profit level to even higher levels. We know that a general rule is that we buy at the “bid” (the lower figure) and sell at the “ask” (the higher figure). The difference between the “bid” and […]

6 Comments Continue Reading →
Covered call trades: the brokerage statement

Executing A Covered Call Trade: A Step By Step Look At Our Broker Statement

Executing a covered call trade and understanding the accounting procedures on our online discount broker statements can be confusing to the new option trader. I have recently received a few emails regarding this topic so I thought it would be useful to show an actual trade I made with KORS, a stock on our Premium […]

7 Comments Continue Reading →

How Our Trade Orders Are Executed For Covered Call Writing

Executing our stock and call option trades is fast and efficient. But what actually goes on behind the scenes after we enter market or limit orders? Once we type our order to the online discount broker there are a series of events that take place terminating in the successful execution of the trade. Here’s how […]

17 Comments Continue Reading →

Covered Call Writing: Types of Customer Orders

Executing covered call trades begins when we instruct our online discount brokers what we want them to do for us. When instructing our online discount broker as to the actions we want taken, we submit a customer order. These orders can take several different forms depending on our investment strategies and objectives. We can buy […]

26 Comments Continue Reading →

Types of Customer Orders plus Industry in the Spotlight

When instructing our online discount broker as to the actions we want taken, we submit a customer order. These orders can take several different forms depending on our investment strategies and objectives. We can buy or sell; request a specific price or simply the best available price; we can stipulate an action given a particular […]

15 Comments Continue Reading →