Latest Insights in Stock Market Investing
Understanding the Math When Rolling ITM Covered Calls Out-And-Up: A Real-Life Example with Utilities Select Sector SPDR Fund (NYSE: XLU) + Save the Date May 11th
All strategies, including covered call writing and selling cash-secured puts, have their pros and cons. The same holds true for the exit strategies associated with them. Several of our members have written to me over the years regarding a "can't lose" portfolio...
How to Record & Calculate ITM Covered Call Trades that Become OTM Trades
To properly analyze our covered call writing and put-selling trades, we must accurately record each step of the trades such that initial and final results are accurate. In this article, a hypothetical covered call trade which starts out in-the-money (ITM) but ends up...
BCI PODCAST 101: Covered Call Writing: “Hitting a Double” on the Last day of a Contract
Watch Video: Listen To Audio Version: One of our covered call writing exit strategy opportunities involves closing the original option and re-selling it a second time, thereby generating 2 income streams in the same contract month. In the BCI methodology, this is...
Establishing Our Option Portfolios in the Heart of Earnings Season
Populating our covered call writing and put-selling portfolios during earnings season can be challenging but nothing we can't overcome. This article will provide ideas as to how to craft our portfolios using elite-performing securities while still avoiding the risk of...
BCI PODCAST 100: Analyzing LEAPS for The Poor Man’s Covered call Strategy (PMCC)
Watch Video: Listen To Audio Version: The PMCC allows investors to enter a covered call at a much lower cost than traditional covered call writing. There are pros and cons to this strategy. This podcast will detail how to use Delta to assist in the selection of our...
Technical Analysis for Options: A Real-Life Example with Deckers Outdoor Corp. (NYSE: DECK)
In our BCI methodology, we use a 3-pronged approach to screening for our covered call writing and put-selling portfolios: Fundamental analysis (sales & earnings Technical analysis (trend, volume and momentum) Common-sense principles (minimum trading volume,...
Establishing 84% Probability of Success Put Trades in Bear Markets
Selling deep out-of-the-money cash-secured puts in bear markets will provide us with additional protection to the downside in return for lower, but still significant, option returns. This article will highlight the use of Delta and implied volatility to establish a...
How to Calculate Dividends into Our Covered Call Writing Calculations
Covered call writing is a low-risk, cash generating option-selling strategy. Premium is generated by undertaking the contractual obligation to sell our shares at a price (strike price) and date (expiration date) that we, the option sellers, determine. Frequently,...
BCI PODCAST 99: Anatomy of a Reverse Stock Split
Watch Video: Listen To Audio Version: Various corporate events like stock splits, mergers and acquisitions will results in share price changes that require the Options Clearing Corporation to adjust option contracts such that buyers and sellers of calls and puts are...
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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