Jun 9, 2012 | Option Trading Basics
As covered call writers, we have all looked at options chains. That’s where we determine how much cash will be generated into our accounts when we sell our options. It’s fun! We first inspect the current price of the underlying security (stock or ETF). Then we check...
Jun 2, 2012 | Stock Investing, Stock Option Strategies
When studying covered call writing we learn to master stock investing as well as option trading basics. Then we become elite investors by focusing in on the inter-relationship between the two. In this regard, a story most of us have been following the past two weeks...
May 26, 2012 | Options Trade Execution
An integral aspect of our options trade executions is to sell at the “bid” and buy at the “ask”. Many times we can “negotiate” the bid to a higher price or the ask to a lower price. Would you like to earn $50 in 50 seconds? Why not...
May 19, 2012 | Covered Call Exit Strategies, Options Trade Execution
Covered call writing trades can be analyzed from many perspectives. Each analysis represents an enlightening experience as we all learn from each other and share ideas and conclusions. We recently received a series of emails from one of our more experienced and savvy...
May 12, 2012 | Option Trading Basics
When studying option trading basics, a critical formula is: Option premium = intrinsic value + time value (or extrinsic value) This past week I hosted a seminar in New York and there were many inquiries regarding the difference between intrinsic and extrinsic value so...
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