Sep 28, 2013 | Investment Basics, Stock Investing, Stock Trading & Taxes
It’s 4 PM EST and the bell rings on the New York Stock Exchange marking the end of the trading day. As we watch CNBC, Bloomberg or Fox Business News we see the tickers till scrolling at the bottom of our TV screens! What’s up with that? The New York Stock Exchange and...
Sep 21, 2013 | Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
Strike price selection is a critical concept needed to master covered call writing. Selling in-the-money strikes is the most conservative approach to this strategy and selling out-of-the-money strikes is the most bullish. We use the latter when the overall market is...
Sep 14, 2013 | Covered Call Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Stock Investing, Stock Option Strategies
Covered call writing, like most investment strategies, has a certain risk/reward profile relating to potential profits and losses. A profit and loss graph is a graphical representation of the potential outcomes of this or other strategies. Let’s first have a...
Sep 7, 2013 | Covered Call Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
Covered call writers receive option premiums for undertaking the obligation to sell our shares to the option holder if that holder decides to exercise that right. Understanding when and why exercise will take place is critical to the implementation of appropriate exit...