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Covered Call Writing & Selling Cash-Secured Puts: Strategies or Exit Strategies? A Real-Life Example with T-Mobile US Inc. (Nasdaq: TMUS)

Covered call writing and selling cash-secured puts are low-risk option-selling strategies seeking to generate weekly or monthly cash-flow. Can these basic strategies be considered exit strategies as well? In this article, I will make the case that, yes, they can be considered both.   When is covered call writing an exit strategy?  After selling a […]

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Rolling-In Covered Call Trades + New Book Discount Offer Expiring

Exit strategy implementation is a critical aspect of successful covered call writing and put-selling strategies. Over the years, we have discussed rolling options as an integral part of our position management arsenal. This article will detail a new rolling strategy… rolling-in.   Rolling definitions Rolling-up: Close out options at a lower strike and open options […]

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BCI PODCAST 85: Automating the 20% /10% Guidelines for Covered Call Writing

Watch Video: Listen To Audio Version: Exit strategies can dramatically enhance our covered call writing returns. In this podcast, a real-life example with NKE is taken directly from one of Alan’s portfolios where multiple rolling-down exit strategy opportunities were executed. These steps turned a losing trade into a profitable one. BECOME A BCI MEMBER TODAY: […]

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How to Enter Our Rolling-Out Cash-Secured Put Trades into Our Trading Logs + New Book Discount Offer

When we roll-out a cash-secured put trade, we are spanning 2 contract cycles. This article will detail how to enter and close our trades into our trading logs to best reflect the results over multiple time frames.   What is rolling-out an ITM put strike? This is where we buy back (buy-to-close or BTC) the […]

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Why are We Receiving a Higher Return When We’re Expecting a Lower Return?

On 2/21/2022, Frank emailed me about our 10-Delta ultra-low-risk cash-secured put strategy. With Moderna Inc. (MRNA) trading at $145.00 per-share, he asked about using the deep out-of-the-money $118.00 weekly strike that expired on 2/25/2022. Let’s evaluate this trade to see if it aligns with our strategy goals and personal risk-tolerance.   MRNA option-chain on 2/21/2022 […]

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BCI PODCAST 84: Analyzing and Calculating Multi Leg Rolling Down Covered Call Trades

Watch Video: Listen To Audio Version: Exit strategies can dramatically enhance our covered call writing returns. In this podcast, a real-life example with NKE is taken directly from one of Alan’s portfolios where multiple rolling-down exit strategy opportunities were executed. These steps turned a losing trade into a profitable one. BECOME A BCI MEMBER TODAY: […]

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Ask Alan

Ask Alan 196: Why are We Receiving a Higher Return After Expecting a Lower Return?

Alan answers a question posed by Elliot, who asks: Hi Alan, Alan, On 2/21/2022, I was looking to trade your 10-Delta ultra low-risk weekly put strategy with Moderna (MRNA). With MRNA at $145.00, I was looking to sell the 2/25/2022 $118.00 put for $1.23. This week, Monday was President’s Day, so a 4-day week. I […]

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Hitting a Double: The BCI Trade Management Calculator in Action + Final Chance to Register for Tuesday’s Webinar

“Hitting a double” involves buying back the short call using our 20%/10% guidelines and then re-selling that same option when share price recovers. On 3/13/2019, Mario was kind enough to share with us his trades with SPDR S&P Biotech ETF (NYSE: XBI) where he astutely applied this exit strategy.   Hitting a double trade overview  2/26/2019: […]

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Enhancing Gains with the Mid-Contract Unwind Exit Strategy: The BCI Trade Management Calculator in Action + Free Webinar Registration Link

After entering our covered call trades and share price rises substantially, there are often opportunities to generate a 2nd inc0me stream by closing both legs of the original trade and entering a new one with a different underlying security. In the BCI methodology, this is known as the Mid-Contract Unwind (MCU) exit strategy. This article […]

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Mitigating Losses by Rolling-Down During a Severe Market Decline: The BCI Trade Management Calculator in Action + Free Webinar Registration Link

Rolling-down is one of our frequently used covered call writing exit strategies. During the January 2022 contracts, there was a 5% market decline due to COVD-19, inflation and interest rate concerns. This article will highlight a rolling-down strategy I implemented with Healthcare Select Sector SPDR (NYSE: XLV) in one of my portfolios where a 4.68% […]

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