When learning how to trade options volume must always be factored in. Volume is the number of shares or contracts that trade over a specific period of time, usually one day. On a chart, volume is represented as a histogram (vertical bars) overlaid on or below the price chart. This indicator is an essential part [...]
The Stochastic Oscillator- A Momentum Technical Indicator
When using the covered call writing strategy, it is critical to select stocks with positive price momentum. This will increase the probability of maximizing our profits. One of the technical indicators included in the BCI methodology is the stochastic oscillator. The stochastic oscillator is a momentum indicator that shows the location of the current closing [...]
Setting Up a Technical Chart for Covered Call Writing
Technical analysis is the method of predicting future stock price movements based on observation of historical stock price movements. It is an essential tool in the armamentarium of covered call writers, and critical in achieving maximum success. We use technical analysis in our stock selection process, buy/sell decisions, strike price selections and exit strategy determinations. [...]
Should We Use Stop Loss Orders? Plus Technical Analysis of a Premium Stock
You’re boarding a jet to fly from California to New York to attend a Blue Collar seminar. A JetBlue flight attendant greets you and asks the following question: “Would you like this plane put on auto-pilot or would you prefer it be flown by an experienced, educated and motivated pilot?” You think of the myriad [...]

