Latest Insights in Stock Market Investing
BCI PODCAST 75: Reverse Stock Splits Understanding Contract Adjustments
Watch Video: Listen To Audio Version: Certain corporate events will result in the Options Clearing Corporations to adjust our option contract components. These include stock splits, mergers and acquisitions, 1-time cash dividends and reverse stock splits. BECOME A BCI...
Using Implied Volatility to Establish Reliable Trading Ranges for Our Option Contracts
PLEASE SEE A REVISION TO THIS ARTICLE AT THE END OF THE POST. I MADE AN ERROR AND REVERSED THE NUMERATOR AND DENOMINATOR IN ONE OF MY CALCULATIONS. THE CONCEPTS ARE ACCURATE BUT THE MATH NEEDED TO BE TWEAKED. I have written several articles on the use of VOLQ...
When to Roll Options on Successful Trades: A Real-Life Example with iShares MSCI India ETF (BATS: INDA)
Exit strategies for covered call writing are an inherent part of our BCI methodology. They allow us to mitigate losses, enhance gains and even turn losses into gains. There will be times when find ourselves in situations where it not 100% clear whether we should pull...
BCI PODCAST 74: Strike Selection Using Technical Analysis and Market Assessment
Watch Video: Listen To Audio Version: Covered call writing strike selection is based on the technical price chart, overall market assessment, personal risk-tolerance and strategy time-value return goals. This podcast will focus on technical analysis and market...
Rolling Weekly 10-Delta Put Options Prior to a Holiday Weekend: A Real-Life Example with Etsy, Inc. (Nasdaq: ETSY)
One of the ultra-low-risk strategies developed by BCI in 2o20 involved selling weekly 10-Delta cash-secured puts. This created a greater than 90% probability that the puts would not be exercised (expire in-the-money or with intrinsic-value). Since 2020 - 2021...
Understanding 1-Time Special Cash Dividends and Our Current Trade Status: A Real-Life Example with OMF
Contract adjustments will change the parameters of our covered call writing and put-selling trades but will not result in any trade loss or gain. The Options Clearing Corporation (OCC) will make alterations to our option contracts such that buyers and sellers of calls...
BCI PODCAST #73: Mid Contract Unwind Exit Strategy at the End of a Contract
Watch Video: Listen To Audio Version: Covered call writing exit strategies will help elevate our returns to the highest possible levels. The mid-contract unwind exit strategy is usually reserved for early-to-late in a monthly contract but there are scenarios when it...
Comparing Implied Volatility and Delta When Establishing Projected Trading Ranges During Our Option Contracts
In 2020, BCI developed 2 ultra-low-risk option strategies, one using implied volatility and the other using Delta to establish low- and high-end trading ranges during our covered call writing and put-selling option contracts. We will use 5 real-life examples to...
Collar Strategy Using Weekly Calls and Monthly Puts: A Real-Life Example with LABU
The collar strategy is a covered call writing-like strategy where protective puts are added to our covered call trades. This creates a ceiling (the short call) and a floor (the long put). Typically, the expiration dates of the calls and puts are the same. We must also...
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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