Jul 20, 2013 | Covered Call Exit Strategies, Option Trading Basics, Stock Option Strategies, Technical Analysis
Technical analysis or fundamental analysis…which should we use in the stock selection process for covered call writing? Many sophisticated investors can make an impressive argument for one or the other. I say why not use both? As most of you know, in the BCI...
Jul 13, 2013 | Investment Basics, Option Trading Basics, Options Trade Execution, Stock Investing, Stock Option Strategies
Covered call writing along with all other stock and option strategies require us to open a brokerage account. This process will take more than a simple phone call. All brokerages will require us to fill out an options approval form as designed by its compliance...
Jul 6, 2013 | Investment Basics, Option Trading Basics, Options Calculations
Maximizing covered call writing profits requires us to master strike price selection. Very few covered call writers outside the BCI community use in-the-money strikes and, as a result, do not achieve the results that we do. Recently, a few BCI members sent me emails...
Jun 29, 2013 | Investment Basics, Stock Investing
In the BCI methodology for covered call writing, we require an average minimum daily trading volume for the underlying security of 250,000 shares or more. This is important because it increases the likelihood of favorable trade execution pricing and decreases the...
Jun 22, 2013 | Investment Basics, Option Trading Basics, Stock Option Strategies
Several studies have been undertaken to determine the effectiveness of the covered call writing strategy. I believe that it is important to evaluate the parameters that are used as well as how they are employed in these evaluations to assess the accuracy of the...