Portfolio overwriting is a covered call writing-like strategy. We use it with our long-term buy-and-hold portfolios in non-sheltered accounts with the objectives to generate additional cash-flow while still retaining the shares. Share retention is a required objective to avoid potential negative capital gains tax issues. In my books and online videos, I suggest a 6% […]

BCI PODCAST 80: Using the VIX to Achieve Higher Option-Selling Returns
Watch Video: Listen To Audio Version: Market volatility results in higher option premiums for option-sellers but also represents enhanced risk. This podcast analyzes ways to manage high and low VIX stats using a real-life example with Boyd gaming (BYD). Strike selection, stock selection and initial time-valure return goal range are topics discussed. BECOME A BCI […]

Ask Alan 194: Mitigating Losses by Rolling Down During a Severe Market Decline
Alan answers a question posed by Elliot, who asks: Hi Alan, With COVID-19, inflation and rising interest rates concerns, the market has plummeted dramatically. Can you share the type of exit strategies we can use in these type of market conditions? Help! Elliot During the January 2022 contracts, the S&P 500 declined by 5.5%. […]

BCI PODCAST 79: Adjusting Target Goals with ETFs
Watch Video: Listen To Audio Version: Exchange-traded funds represent baskets of stocks. They are generally less volatile than individual stocks and therefore provide lower option premiums. When defining our initial time-value return goal range, we must factor this in so as to properly manage our portfolio results. A real-life example with SPDR% S&P Homebuilders ETF […]

BCI PODCAST 78: REITS: Good Covered Call Writing Candidates?
Watch Video: Listen To Audio Version: Option-sellers may be attracted to the high dividend yield of real estate investment trusts (REITs).This podcast addresses portfolio diversification, dividend yield, implied volatility and calculations while using PennyMac Mortgage Investment Trust (PMC) as a real-life example. BECOME A BCI MEMBER TODAY: PREMIUM MEMBERSHIP SEE BCI COURSE & PRODUCTS : […]
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