Latest Insights in Stock Market Investing
Bullish & Bearish Covered Call Trade Executions When Selling Multiple Contracts on the Same Stock
click ↑ 4 Featured When selling covered calls or cash-secured puts, we must be appropriately diversified, as well as allocating a similar amount of cash per position. This will protect our portfolios from significant price decline in 1 or 2 of our positions. When we...
Why Wasn’t My Deep In-The-Money Covered Call Exercised?
click ↑ 4 Featured When we write covered calls, our expectation is that if the strike expires in-the-money (ITM), even by $0.01, our shares will be sold at the strike price as a result of option exercise. We check our brokerage accounts the Saturday after expiration...
BCI PODCAST 131: Understanding the Math of Unwinding Covered Call Writing Trades Early
Watch Video: This covered call writing exit strategy allows us to generate 2 income streams in the same contract cycle with the same cash investment. It is called the mid-contract unwind exit strategy. The time-value and intrinsic-value premium components are...
Portfolio Overwriting Weekly Covered Calls with Chipotle Mexican Grill
click ↑ 4 Featured Portfolio overwriting is a covered call writing-like strategy seeking to both generate cash flow and retain the underlying shares. Share retention may be motivated by our bullish long-term assessment of the security and/or concern for negative...
BCI PODCAST 130: Unusual Strike Prices and Contract Adjustments
Watch Video: Why will a strike price disappear in the middle of a contract? Why will some strikes have odd numbers such as dollars and cents? Corporate events like stock splits, mergers and acquisitions and special dividends are usually responsible for such changes....
My Covered Call is Expiring In-The-Money and I Want to Keep My Shares
click ↑ 4 Featured Covered call writers will frequently find themselves in a position where the short call is expiring in-the-money (ITM), while still wanting to use the same underlying shares for the next contract cycle. How should this be managed? 3-approaches...
Should I Close My ATM Covered Call with 2 1/2 Months Until Contract Expiration?
click ↑ 4 Featured When our covered call writing trades move deep in-the-money (ITM), the time-value cost-to-close approaches (but does not reach) $0.00. In these scenarios, it may make sense to close both legs of the trade (mid-contract unwind or MCU exit strategy)....
BCI PODCAST 129: Rolling-Up a Covered Call Trade
Watch Video: Rolling-up is a covered call writing exit strategy where the original short call is closed, and new call is opened at a higher strike price. This podcast features a rolling-up trade in the same contract expiration cycle where calculations and trade...
The Importance of the 3% Guideline When Selling Out-Of-The-Money Cash-Secured Puts
click ↑ 4 Featured On 10/20/2023, a BCI premium member shared with me a cash-secured put series of trades executed with Charles Shwab Corp. (NYSE: SCHW). Over the course of 9 months, SCHW dropped in price from approximately $83.00 to $50.87. This...
Wartime Option StrategiesWatch BCi’s series on YouTube.
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
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