Aug 10, 2008 | Covered Call Exit Strategies
Picture this: It’s on or near Expiration Friday and your stock or ETF (Exchange Traded Fund) is above the strike price. You know that if you do not act to institute an Expiration Friday Exit Strategy your stock will be assigned (sold). So what are the factors...
Jul 27, 2008 | Option Trading Basics
Avoid Earnings Reports like the plague! That’s what I promote in my book and DVD Series, Cashing in on Covered Calls. I stand by that premise for many reasons, the most important is the one that relates to the great returns I have been getting. But ERs do give...
Jul 20, 2008 | Option Trading Basics
So you sold an options contract for $380 and generated a 3.5% 1-month return. Did you ever wonder how the market determined the value of that contract to be $380? The simple equation that most of us know and understand is the following: Option premium = Intrinsic...
Jun 26, 2008 | Investment Basics
I was about to ask Linda to marry me. My knowledge of diamond rings was one level below my awareness of the cast of Sex in the City (a show I have never watched). How many of us take our hard-earned money into a mall jewelry store and purchase an engagement ring from...
May 17, 2008 | Investment Basics
This is the third and final article in this trilogy of writings regarding generating income via stock options to erase a negative cash flow situation. In part I, our strategy was developed. Capital preservation was of utmost importance since we needed to maintain our...