Aug 5, 2023 | Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
This is one of the most frequently asked questions I receive from covered call writers all over the world. Should I use a 40-Delta? 35-Delta? Higher? Lower? The focus is on Delta when it shouldn’t be. This article will use a real-life example with Etsy, Inc....
Jul 29, 2023 | Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Put-selling, Stock Option Strategies
The collar strategy is a covered call writing-like strategy where a protective put is added to the covered call trade, creating a 3-leg trade. BCI has developed 2 calculators that can be utilized with the collar strategy. This article will demonstrate how to use the...
Jul 22, 2023 | Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
Covered call writing is a low-risk cash-flow strategy that can also create the potential of a 2nd income stream when using out-of-the-money (OTM) strikes which can also produce potential income from share appreciation. When incorporating underlying securities that...
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