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...
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...
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