Latest Insights in Stock Market Investing
Application of the 20%/10% Guidelines Within a Broad Range of Implied Volatility Securities
I recently published an article titled Managing Implied Volatility Risk by Establishing an Initial Time-Value Return Goal Range. This article served as a catalyst for several inquiries from our members asking if the BCI 20%/10% guidelines applied to high volatility...
BCI PODCAST 64 Creating Dividend Like Income for Non Dividend Stocks
Watch Video: Listen To Audio Version: Covered call writing has a multiplicity of applications depending on strategy goals and personal risk-tolerance. This podcast focuses in on how we can make only 4 covered call trades per year to allow non-dividend stocks to...
Managing Implied Volatility Risk by Establishing an Initial Time-Value Return Goal Range + Webinar Login Link
When screening for eligible securities for covered call writing and selling cash-secured puts, we must establish how much risk we are willing to incur. There is no right or wrong here as the appropriate amount will vary from investor-to-investor. To determine security...
Rolling Covered Calls Out-And-Up Means Adding Cash to the Position
One of the covered call writing exit strategies in our arsenal as expiration approaches is rolling in-the-money strikes out-and-up. This involves buying back the near-month strike and selling a higher strike in the next contract period. Since there is an...
BCI PODCAST 63 Rolling Decisions on Expiration Friday
Watch Video: Listen To Audio Version: There are multiple exit strategies available to us as covered call writers or put-sellers. In this podcast, 2 such strategies will be discussed using a real-life series of trades with Veeva Systems, Inc. (VEEV). BCI calculators...
Using the Elite-Plus Calculator for “Hitting a Double” Results: A Real-Life Example with Redfin Corp. (NASDAQ: RDFN)
One of the covered call writing exit strategies available to us is hitting double. In March 2021, Duane shared with me a trade he executed using this strategy and inquired about how to enter this series of trades into the BCI Elite-Plus Calculator. What is...
Understanding Brokerage Statements for Covered Call Writing: A Real-Life Example with Energy Select Sector SPDR ETF (NYSE: XLE)
Our covered call writing and put-selling broker statements can be confusing when starting our option-selling careers. This article will detail the first 3 steps of our covered call trades (stock purchase, option sale and buy-to-close limit order) using XLE as...
BCI PODCAST 62 Should I Unwind My Covered Call Trade 1 Week Prior to Contract Expiration?
Watch Video: Listen To Audio Version: There are several types of covered call writing calculations we must understand and not confuse. We have initial trade structuring, final calculations, long stock and short call calculations. Capital gains and losses can be...
Reversing Delta with the PCP Strategy: A Real-Life Example with Etsy, Inc. (Nasdaq: ETSY)
The PCP Strategy, called the "wheel strategy" outside the BCI community, involves selling cash-secured puts and covered calls. One of the ultra low-risk strategies developed by the BCI team involves selling weekly cash-secured puts with Deltas of 10 (-0.10) or less...
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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