Using The Put-Call-Put (PCP) Strategy to Create Downside Protection on Steroids

Using The Put-Call-Put (PCP) Strategy to Create Downside Protection on Steroids

Covered call writing and selling cash-secured puts are low-risk option-selling strategies that lower our cost-basis and generate cash-flow as we seek to beat the market on a consistent basis. By integrating both strategies, we construct a multi-tiered option-selling...
Rolling-Up in the Same Contract Month: A Real-Life Example with Ford Motor Company (NYSE: F)

Rolling-Up in the Same Contract Month: A Real-Life Example with Ford Motor Company (NYSE: F)

Rolling-up in the same contract month is generally not a covered call writing exit strategy implemented in our BCI methodology. One of our members shared with me a series of trades he executed with F where a 6-month call was written in August 2021 for a 2/18/2022...
Using Implied Volatility to Determine Safe Strikes for Portfolio Overwriting: A Real-Life Example with PayPal Holdings, Inc. (Nasdaq: PYPL)

Using Implied Volatility to Determine Safe Strikes for Portfolio Overwriting: A Real-Life Example with PayPal Holdings, Inc. (Nasdaq: PYPL)

Portfolio overwriting is a covered call writing-like strategy. We use it with our long-term buy-and-hold portfolios in non-sheltered accounts with the objectives to generate additional cash-flow while still retaining the shares. Share retention is a required objective...