Spinoffs and Stock Splits: How Multiple Corporate Events Can Impact Share Price
Our covered call writing and put-selling positions can be radically impacted by corporate events. In July 2020, Match Group, Inc. (NASDAQ: MTCH) showed extreme price volatility due to 2 corporate events, a spinoff and a stock split. Price dropped from $105.00 to...
BCI PODCAST 41 Collar Trades When Call Strikes Move Deep In The Money
Watch Video: Listen To Audio Version: The collar trade is covered call writing with the addition of a protective put. This podcast will focus in on a scenario when the stock price moves well above the call strike using a real-life example with TEAM. Trade...
Establishing Our Cost-Basis in a Multi-Step Managed Trade
Covered call writing calculations are meaningful only when the correct stats are entered into our formulas (calculators). The cost-basis of a managed trade can be confusing as stock and option values are changing with each step of the trade series. In July 2020, Steve...
BCI PODCAST 40 Covered Puts are Not Cash Secured Puts
Watch Video: Listen To Audio Version: Retail investors may confuse 2 very different strategies that sound the same. Covered puts is a risky strategy that involves shorting a stock and selling a put option. The trader is obligated to replace the “borrowed”...
Podcast
- 126. Analyzing the Status of a Rolling-Down Trade
- 124. Dividends and After-Hours News Causing Exercise of OTM Call Strikes
- 123. Implied Volatility, IV Rank and IV Percentile Defined and Practical Applications
- BCI PODCAST 122: Should I Roll-Out My Deep In-The-Money Call Option Mid-Contract?
- BCI PODCAST 121: What is a SPAC (Special Purpose Acquisition Company)?
- 120. Using the Nasdaq-100 Volatility Index (VOLQ) in Covered Call Writing Decisions
- 119. Establishing Our Cost-Basis for Long-Term Holdings
- 118. Adjusting Our Portfolio Mix to Achieve Diversification and Cash Allocation
- 117. When a Covered Call Strike Moves $1000.00 In-The-Money
- 116. How to Execute a Covered Call Trade with a Buy/Write Combination Form