Selling deep out-of-the-money cash-secured puts in bear markets will provide us with additional protection to the downside in return for lower, but still significant, option returns. This article will highlight the use of Delta and implied volatility to establish a framework for executing such trades with n 84% probability of success. What is Delta? […]

Ask Alan 204: Multiple Exit Strategies with a Weekly Put Trade
Alan answers a question posed by Bill, who asks: Alan, In the attached hypothetical example, can you explain how to enter and calculate closing a weekly put trade after rolling-up in the same week using the Trade Management Calculator? Thank you, Bill This video addresses how to enter and archive a weekly put trade which […]

BCI PODCAST 99: Anatomy of a Reverse Stock Split
Watch Video: Listen To Audio Version: Various corporate events like stock splits, mergers and acquisitions will results in share price changes that require the Options Clearing Corporation to adjust option contracts such that buyers and sellers of calls and puts are made whole. This podcast focuses in on reverse stocks splits, ther reasons they are […]

BCI PODCAST 98: Analyzing LEAPS Options for the Poor Man’s Covered Call
Watch Video: Listen To Audio Version: The Poor Man’s Covered call strategy uses LEAPS options as a replacement for stock and ETF shares. The cost to enter the trade is much lower than using traditional covered call writing. of course, there are pros & cons to this PMCC strategy. This podcast addresses how to select […]

Review of Dividend Dates & Their Impact on Our Covered Call Trades
The main reason for early exercise of our covered call writing options relates to corporate dividends. The key date to be aware of is the ex-dividend date. This article will clarify and define the dates related to corporate dividends and also discuss an anomaly related to special dividends. Early exercise of our covered call […]
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