May 5, 2012 | Option Trading Basics, Options Calculations, Stock Option Strategies
In the BCI methodology for covered call writing we use predominantly 1-month options. There are times, however, where we find cash in our accounts (mid-contract) that is inactive. This may be due to closing a position early either because the share price declined...
Apr 28, 2012 | Investment Basics, Stock Investing
Successful covered call writing requires proper stock and option selection. With the significant increase in our premium membership subscriptions over the past several months we have received dozens of inquiries as to how best to incorporate the stocks on the...
Apr 21, 2012 | Option Trading Basics
When studying option trading basics, we learn that options expire on the third Friday of the month. In the BCI methodology we sell mainly 1-month stock options. When we view an options chain we see several other expirations available. However, they are not the same...
Apr 14, 2012 | Investment Basics
When we defined the Greeks in a previous article concerning investment basics, it included a discussion of the price sensitivity of the option premium as it relates to the underlying equity, time and other factors. One of the rules was that (all other factors being...
Apr 7, 2012 | Investment Basics
Part of learning investment basics is to understand the relationship between interest rates and our investment decisions. That’s why it is important to educate ourselves about Yield Curves. These are lines that plot the interest rates of (most frequently)...
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