One of the BCI guidelines for selling covered call and cash-secured put options is that we require a bid-ask spread of $0.30 or less and/or an open interest of 100 […]
After-Hours Bid – Ask Spreads Can Be Deceiving
Posted on November 3, 2018 by Alan Ellman in Investment Basics, Option Trading Basics, Stock Investing
Open Interest: How it’s Calculated and Why it’s Important
Posted on August 27, 2016 by Alan Ellman in Fundamental Analysis, Investment Basics, Option Trading Basics, Stock Option Strategies
When selling call and put options, the liquidity of these securities must be evaluated to determine their eligibility. There are two measures of investor interest in options, Vol(ume) and Open […]
Spin-offs and How they Impact Option Chains and Calculations
Posted on January 9, 2016 by Alan Ellman in Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
Corporate events can impact our covered call writing and put-selling positions in many ways. In today’s article we will focus on spin-offs and how to read an options chain after the […]
Option Liquidity: When Is Vol(ume) Greater Than Open Interest?
Posted on May 23, 2015 by Alan Ellman in Investment Basics, Option Trading Basics, Stock Option Strategies
Check the options chain before selling a covered call or cash-secured put. In addition to determining the premiums and returns we will generate we also need to make sure the […]
Mini Options: The Impact Of Commissions And Liquidity On Final Returns
Posted on February 22, 2014 by Alan Ellman in Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
Our stock options strategies have a new product to consider: mini options. These options have a deliverable 10 shares of underlying security instead of the traditional 100 shares. The options […]
Sample Covered Call Portfolio Using The Current Premium Watch List
Posted on March 16, 2013 by Alan Ellman in Option Trading Basics, Options Calculations, Stock Option Strategies
Several of our Premium Members have requested we provide sample portfolios based on the CURRENT Premium Watch List as a guide to assist in mastering the strategy of covered call […]
Early Exercise and Assignment of Options
Posted on January 12, 2013 by Alan Ellman in Option Trading Basics, Stock Option Strategies
When we sell a covered call option, we are undertaking an obligation for which we are well paid. Should the option holder decide to exercise that option, we must sell […]
“Pinning the Strike”: A Covered Call Writing Consideration
Posted on September 8, 2012 by Alan Ellman in Covered Call Exit Strategies, Option Trading Basics
When considering covered call exit strategies on or near expiration Friday we compare the market price of our stock to the strike price sold. If the share value is even […]
Open Interest and Volume plus Non-Standard Options
Posted on June 9, 2012 by Alan Ellman in Option Trading Basics
As covered call writers, we have all looked at options chains. That’s where we determine how much cash will be generated into our accounts when we sell our options. It’s […]
How to Read an Option Chain
Posted on October 1, 2011 by Alan Ellman in Option Trading Basics
So how much cash can we generate selling options on the stocks that have passed our fundamental and technical screens? The answer lies in the option chain. This is a […]
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
- Lesson 1: Beginner's Corner for Covered Call Writing: 2nd Edition
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Beginners Corner Selling-Puts
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- Lesson 5:puts-selling-Calculating Returns
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