Listen To Audio Version:
Covered call writing and selling cash-secured puts are both outstanding low-risk approaches to generating cash flow. These strategies are similar but not precisely the same. This podcast will feature the pros and cons of each strategy as well as calculations using the BCI covered call (Ellman) calculator and the BCI Put-Selling calculator. A real-life example with Paylocity Holding Corp. (PCTY) will detail the facts.
BECOME A BCI MEMBER TODAY:
SEE BCI COURSE & PRODUCTS :
STOCKS,TRADING,STOCK MARKET,COVERED CALLS,covered call writing,Axsome,Therapeutics,Ellman Calculator,gap-up,cost-to-close,implied volatility,Alpha,Beta,seeking,alpha,cost-basis,time-value,intrinsic- value,put-selling,collar calculator,put calculator,stock option,facebook stock,amazon stock,investing,options,Option,option buyer,strike price,in the money,in the money coverd call,out of the money covered call,covered call writing exit strategies
BCI #70. I notice that many/most of your CC candidates are underfollowed companies like the PCTY example.
How do you identify these and do you worry about insufficient volume w/ large spreads? I notice the chart on this one shows a rising trend and is that one of the keys?
The BCI screening process does have liquidity guidelines:
•The underlying security must have a daily average trading volume of 250,000 shares/day.
•There must be 100 option contracts of open interest and/or a bid-ask spread of $0.30 or less (OI is identified in our reports)
We do a technical analysis of all our “eligible” securities and they must satisfy our trend, momentum and volume parameters. We also screen for fundamental requirements and common-sense parameters. All this information is detailed in my books and online video courses with examples.