Latest Insights in Stock Market Investing
Reverse Stock Splits: Understanding Contract Adjustments
Contract adjustments to the terms of our covered call writing and put-selling options are due to corporate actions like mergers and acquisitions, special dividends and stock splits. This article will highlight the contract alterations resulting from a reverse stock...
BCI Podcast 8. Covered Call Writing Risk Reduction
Watch Video: Listen To Audio Version: Covered call writing is a low-risk strategy that generates monthly cash-flow. This podcast will discuss 2 approaches to reducing risk even further. The collar strategy (adding protective puts to our covered call trades) and...
Myths and Misunderstandings About Covered Call Writing
Covered call writing education must include debunking the myths associated with this strategy. When certain concepts are repeated often enough, they become accepted as truths whether they are accurate or false. The purpose of this article is to refute five of the most...
BCI Podcast 7. Treasury Bond Yields and the Stock market
Watch Video: Listen To Audio Version: Treasury bond yields and the movement of the stock market are generally considered to have an inverse relationship. This podcast will discuss the true point where the market is negatively impacted by bond yields based on...
Buyers Have Rights, Sellers Have Obligations: Covered Call Writing in a Nutshell
Covered call writers get paid cash when selling call options. Call buyers pay cash to own the options. This article will highlight the reasons options are bought and sold as it relates to covered call writing. We will use a real-life example with CarMax, Inc. (NYSE:...
BCI Podcast 6. Trade Management with BRKS
Watch Video: Listen To Audio Version: Exit strategy opportunities allow us to mitigate losses and enhance gains. When these events present themselves we must be prepared to take advantage of them. However, we must also be sure that taking action will benefit our trade...
REITS: Good Covered Call Writing Candidates? A Real-Life Example with PennyMac Mortgage Investment Trust (NYSE: PMT)
REITs (real estate investment trusts) invest directly in income-producing real estate and is traded like a stock. In September 2019, Clifton wrote to me about PMT inquiring if it would make a viable covered call writing candidate. He pointed out that this security...
Adjusting Target Goals with ETFs
Exchange-traded funds are baskets of stocks some going up and others going down in price. Generally, this makes these securities less volatile than individual stocks. Lower implied volatility translates into lower option premiums. Of course, there are exceptions but...
BCI Podcast 4. Managing News Drive Gap Downs
Watch Video: Listen To Audio Version: After entering a covered call or put-selling trade and bad news comes out causing share price to gap-down, we must be prepared to take mitigating action. This video reviews the philosophical and practical steps we must take to...
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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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