Ask Alan – Early Exercise of Covered Call Options
Alan answers a question from Scott of Los Angeles, CA. Scott asks, “At the beginning of a contract period you sell a $40 out-of-the-money call after purchasing the stock for $38. The stock goes up quickly within a few days with 25 days left in the period. Say...
“Pinning the Strike”: A Covered Call Writing Consideration
When considering covered call exit strategies on or near expiration Friday we compare the market price of our stock to the strike price sold. If the share value is even one penny above the strike, the option will most likely be exercised and our shares sold. We may...
Ask Alan – Finalizing Our Covered Call Watch List and Stock Selection
Alan answers a question fromJosh of Walnut Creek, CA. Josh writes… "I’m an experienced, fundamentally oriented, value investor, but over the years I’ve migrated more and more towards quantitative stock selection methodologies. I believe I have a...
Put Selling and Covered Call Writing
When studying option trading basics we learn that to be in a “covered” position we must first purchase the stock before selling the option for the strategy of covered call writing. Some investors will execute both parts of the trade by using a buy-write...
Podcast
- 126. Analyzing the Status of a Rolling-Down Trade
- 124. Dividends and After-Hours News Causing Exercise of OTM Call Strikes
- 123. Implied Volatility, IV Rank and IV Percentile Defined and Practical Applications
- BCI PODCAST 122: Should I Roll-Out My Deep In-The-Money Call Option Mid-Contract?
- BCI PODCAST 121: What is a SPAC (Special Purpose Acquisition Company)?
- 120. Using the Nasdaq-100 Volatility Index (VOLQ) in Covered Call Writing Decisions
- 119. Establishing Our Cost-Basis for Long-Term Holdings
- 118. Adjusting Our Portfolio Mix to Achieve Diversification and Cash Allocation
- 117. When a Covered Call Strike Moves $1000.00 In-The-Money
- 116. How to Execute a Covered Call Trade with a Buy/Write Combination Form