Mar 17, 2012 | Covered Call Exit Strategies
Covered call writers can be good at what they do or great at it. They can generate decent returns or the highest possible returns. One of the mission statements of The Blue Collar Investor is to assist each other in achieving the greatest levels of success. The...
Mar 10, 2012 | Options Calculations
Selling stock options is all about generating a cash flow. Calculating our initial profit, the potential for more profit (upside potential) and the protection of our initial profit (downside protection as opposed to breakeven of the entire position) is critical in...
Mar 3, 2012 | Technical Analysis
When learning how to trade options volume must always be factored in. Volume is the number of shares or contracts that trade over a specific period of time, usually one day. On a chart, volume is represented as a histogram (vertical bars) overlaid on or below the...
Feb 25, 2012 | Covered Call Exit Strategies
To maximize our covered call writing profits it is critical to take advantage of our exit strategy opportunities. Last week I posted a few comments regarding the mid-contract unwind exit strategy and received several emails asking for more information about the trade...
Feb 18, 2012 | Option Trading Basics
When studying our option trading basics, we learn that most stock options have four expiration cycles. Some securities also have long-term options (LEAPS) as well as weekly and quarterly expirations. Some of our members have noticed that there are certain...
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