Aug 27, 2016 | 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 Interest (OI). Vol represents the number of times a particular contract is...
Jan 9, 2016 | 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 event and calculate to moneyness of our options based on the specifics of that...
May 23, 2015 | 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 interest or liquidity in these options will be adequate enough for favorable trade executions....
Jun 9, 2012 | 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 fun! We first inspect the current price of the underlying security (stock or ETF). Then we check...
Mar 3, 2012 | Technical Analysis
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...
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