beginners corner
Archive by Author

BCI PODCAST 111: Rolling Down on a Sharp Market Decline at the end of a Contract

Watch Video: Listen To Audio Version: Exit strategies are critical to achieving the highest degree of trading success. This podcast will highlight a trade executed with XLV where there was […]

Leave a comment Continue Reading →

How to Use the BCI Portfolio Setup Spreadsheet to Craft Our Put-Selling Portfolios

When we plan our covered call writing and cash-secured puts trades, we must focus in on diversification and cash allocation. In order to accomplish these goals, in April 2023, BCI […]

6 Comments Continue Reading →

Collar Calculations Using the BCI Trade Management Calculator

The Collar Strategy is a covered call writing-like strategy where a protective put is added to the trade, thereby establishing a floor and a ceiling with a maximum gain and […]

7 Comments Continue Reading →
Ask Alan

Ask Alan # 210: What If I Close My Covered Call Writing Position Early When Share Price Rises?

———- Mhen share price rises significantly, opportunities are created to close the covered call trade prior to contract expiration and use the freed-up cash to initiate a second income stream […]

Comments Off on Ask Alan # 210: What If I Close My Covered Call Writing Position Early When Share Price Rises? Continue Reading →

When Should I Take My Profits with a Successful Covered Call Writing Trade?

Which %, if any, of our original covered call writing initial time-value return, should we use to close both legs of the trade, and guarantee a realized return? 60%? 75%? […]

10 Comments Continue Reading →

BCI PODCAST 110: Exit Strategies Are Important But Must Be Timed Properly

Watch Video: Listen To Audio Version: In this podcast, a series of real-life covered call writing trades will be analyzed with MGM. Initial trade structuring, exit strategy implementation and trade […]

Comments Off on BCI PODCAST 110: Exit Strategies Are Important But Must Be Timed Properly Continue Reading →

Using Technical Analysis for Our Stock & Option Selection in Covered Call Writing Trades

In our BCI methodology, we have a 3-pronged approach to stock selection for our covered call writing trades: Fundamental analysis Technical analysis Common-sense principles (minimum trading volume, avoiding earnings reports, […]

12 Comments Continue Reading →

BCI PODCAST 109: Delta and Strike Selection for Covered call Writing

Watch Video: Listen To Audio Version: Should our covered call writing strikes be determined by the delta of those strikes? This podcast will make a case that our strikes should […]

Comments Off on BCI PODCAST 109: Delta and Strike Selection for Covered call Writing Continue Reading →

How Our Covered Call Trades are Impacted When Regular and Special 1-Time Cash Dividends Come on the Same Day

The parameters of our covered call trades are often changed when certain corporate events result in option contract adjustments. These events include stock splits, mergers & acquisitions as well as […]

9 Comments Continue Reading →

Comparing Covered Call Writing & Cash-Secured Puts in Bull Market Environments

Covered call writing versus cash-secured puts in bull markets … which is better? This article will present the arguments for both and make a case why I prefer covered call […]

8 Comments Continue Reading →