Put Selling and Covered Call Writing

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...
Ask Alan – Finalizing Our Covered Call Watch List and Stock Selection

Ask Alan – Low Open Interest & Large Bid Ask Spread

Alan answers a question coming from Karen of Marietta, GA. Karen writes… I recently purchased LivePerson, ticker symbol LPSN for $17.49. The $15 strike has a low open interest of 32 and a large, bid ask spread of $0.45. The $17.50 strike has a much larger open...