Sep 23, 2023 | Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Put-selling, Stock Option Strategies
When we plan our covered call writing and cash-secured puts trades, we must focus in on diversification and cash allocation. In order to accomplish these goals, in April 2023, BCI introduced the BCI Portfolio Setup Spreadsheet with our CEO streamlined approach to...
Sep 16, 2023 | Covered Call Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
The Collar Strategy is a covered call writing-like strategy where a protective put is added to the trade, thereby establishing a floor and a ceiling with a maximum gain and a maximum loss. This article will demonstrate how we can use our BCI Trade Management...
Sep 9, 2023 | Covered Call Exit Strategies, Exchange-Traded Funds, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
Which %, if any, of our original covered call writing initial time-value return, should we use to close both legs of the trade, and guarantee a realized return? 60%? 75%? Higher? Lower? Closing both legs of a covered call writing trade mid-contract is known as the...
Sep 2, 2023 | Fundamental Analysis, Investment Basics, Option Trading Basics, Stock Option Strategies, Technical Analysis
In our BCI methodology, we have a 3-pronged approach to stock selection for our covered call writing trades: Fundamental analysis Technical analysis Common-sense principles (minimum trading volume, avoiding earnings reports, among others) We use a mosaic of all 3...
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