When we select stocks for covered call writing or selling cash-secured puts we factor in fundamental, technical and common-sense screens (like minimum trading volume). This screening process is the foundation […]
Writing Covered Call Options to Compensate for Share Depreciation
Covered call writing generates monthly (or weekly) cash flow but it also reduces our cost basis. The latter result is the reason why covered call writing increases our chances of […]
When Do We Keep a Stock that has Declined in Value?
The BCI methodology requires fundamental analysis, technical analysis and common sense screening (like minimum trading volume and avoiding earnings reports). One of the most difficult decisions retail investors face is […]
Technical Analysis Indicators for Long and Short-Term Portfolios
Technical analysis represents one third of the stock screening process in the BCI methodology. The other two are common sense principles (referred to as “descriptive terms for long-term investing) and […]
Technical Analysis and Covered Call Decisions: Looking Back At KORS
Technical analysis is an integral part of our covered call writing decisions for both stock and option selections. It also impacts our exit strategy decisions. KORS has been a favorite […]
MACD: A Lagging and Momentum Technical Indicator: Part I
Technical analysis is as much an art as it is a science. No one parameter, by itself, will allow us to make our buy/sell decisions. However, when all the indicators […]
Why Use Technical Analysis: An Example Of A Complete Technical Breakdown
Technical analysis or fundamental analysis…which should we use in the stock selection process for covered call writing? Many sophisticated investors can make an impressive argument for one or the other. […]
Setting Up A Technical Chart + An Example Of An Ideal Chart
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 […]
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