In the BCI methodology, we use the 20%/10% guidelines to establish a protocol as when to buy back our covered call options if share price declines. When using riskier underlying securities with high implied volatility, the role of Delta is analyzed as to why it represents a mitigating factor. Low, medium and high-risk ETFs are used to highlight the relationship between Delta and implied volatility as they relate to managing our covered call trades.
Links mentioned in this podcast:
https://thebluecollarinvestor.com/minimembership/bci-investor-program/