Whenever a study is performed on covered call writing a stock is selected and the nearest out-of-the-money (O-T-M) strike is sold. This is repeated over and over and then the […]
Tax Information by Guest Author Owen Sargent, CPA
Tax Time Is Upon Us First, I strongly urge all BCI members to download IRS Publication 550, Investment Income and Expenses, from the Internal Revenue Service website, at: http://www.irs.gov/pub/irs-pdf/p550.pdf. You […]
Penny Pilot Program
Do you get frustrated when something doesn’t make sense? Me too. Here’s an example: You’re viewing an options chain of a great-performing stock in a great-performing industry and you note […]
Protective Puts- The Collar Strategy
As safe a strategy that covered call writing is, there is some risk…the risk is in the stock, not in selling the option. That is why some investors who utilize […]
Options That Expire Weekly and Conventional Expiration Cycles
There’s a new man in town! A relatively new options product is now available called the Weekly Options Series or Weeklys. These weekly expiration options are listed on a Thursday and […]
The CBOEs Volatility Index (VIX)
In my books and seminars I discuss determining market tone before making any investment decisions. One of the main factors I utilize in this evaluation is the VIX. The VIX is […]
Volume- A Critical Technical Analysis Indicator
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) […]
Factors that Determine the Value of your Option Premium
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? […]
Portfolio Management- Organized Lists Will Improve Our Option Profits
I am a big believer in setting yourself up for success. This is accomplished through education, motivation, commitment and organization. Investors reading this article and others are definitely seeking education, and […]
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