Apr 19, 2014 | Investment Basics, Option Trading Basics, Stock Option Strategies
The goals of covered call writing include generating monthly cash flow and preserving capital. We use every fundamental, technical and common sense principle available to maximize our profits and protect our cash. Paul A. recently sent me an excellent question that...
Apr 12, 2014 | Investment Basics, Option Trading Basics, Stock Investing, Stock Option Strategies
Options trading basics teaches us that the VIX or CBOE Volatility Index demonstrates the market’s expectation of 30-day volatility. It measures market risk and is also known as the investor fear gauge. With this in mind, covered call writers are faced with a...
Apr 5, 2014 | Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
Covered call exit strategies plays a major role in mitigating losses in our BCI methodology. In most cases, we can keep losses to a minimum, turn losses into gains and enhance profits as well. Some covered call writers want the security of protecting against a...
Mar 29, 2014 | Covered Call Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
Mastering options calculations is an essential skill needed to attain the very highest covered call writing returns. Although the Ellman Calculator will do most of the heavy lifting for us, understanding the reasons behind these calculations and when and how to apply...
Mar 22, 2014 | Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
Meaningful option calculations are essential in determining if the premiums meet our goals. To this end, we must understand the mathematics of these calculations to become elite covered call writers. Now don’t worry…we don’t have to become Albert...
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