Latest Insights in Stock Market Investing
Rolling Out-And-Up: 6-Week Returns
Option calculations help guide us to an accurate assessment of our covered call writing profits. It’s more meaningful to use percentages rather than dollar amounts when executing these calculations. For example, a $1000.00 profit on a $10,000.00 investment (10%) is...
BCI PODCAST 26. Selling Cash Secured Puts to Lower Cost Basis
Watch Video: Listen To Audio Version: Selling out-of-the-money (OTM) cash-secured puts creates an opportunity to "buy a stock at a discount" if the put option is exercised. If unexercised, we generate a monthly cash flow via the option premium. When one of our stocks...
BCI PODCAST 25. “Hitting a Double” with Procter & Gamble Covered Call Writing Exit Strategies
Watch Video: Listen To Audio Version: Managing our covered call writing trades is essential to achieving the highest possible returns. In this podcast the "hitting a double" exit strategy will be highlighted with a real-life example with Procter & Gamble. After...
BCI PODCAST 24. Using Covered Call Writing and Stock Dividends in Low Interest Rate Environments
Watch Video: Listen To Audio Version: Details a strategy with a potential of 3 income streams for each trade: one from share appreciation, another from stock dividend distribution and a third from option premium. Stock selection will come from the Dow 30, option...
BCI PODCAST 23. Covered Call Writing with Weekly Options Portfolio Overwriting with Weeklys
Watch Video: Listen To Audio Version: Covered call writing can elevate returns for long-term buy-and-hold portfolios trading in non-sheltered accounts. The use of Weekly options can be especially beneficial in these circumstances. This podcast also introduces the BCI...
BCI PODCAST 22. A Covered Call Writing Alternative to Rolling Up in the Same Contract Month
Watch Video: Listen To Audio Version: The mid-contract unwind exit strategy closes an entire covered call trade when the strike moves deep in-the-money and enters a new trade with a new stock in the same contract month.. The key to success includes evaluating the...
BCI PODCAST 21. When To Execute Our Option Selling Trades
Watch Video: Listen To Audio Version: Covered call writers and put-selling must make timing decisions as to when to enter, manage and roll our option trades. This podcast will discuss these 3 determinations using Theta, or time-value erosion as a backdrop to framing...
Selling Deep OTM Cash-Secured Puts with Exit Strategy Enhancements
This is a follow-up cash-secured puts article to the one published last week where I detailed how I was selling deep OTM cash-secured puts on Apple Computer (AAPL) to generate weekly cash flow. I was using strikes with Deltas below -0.10%, approximating less than a...
Selling Deep OTM Weekly Cash-Secured Puts to Generate Substantial Annualized Returns
Selling Cash-Secured Puts is a strategy similar to, but not precisely the same as, covered call writing. It is generally used to generate cash-flow as a standalone strategy but also can be implemented to buy a stock at a discount or used in conjunction with covered...
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