Latest Insights in Stock Market Investing
What is Quantifying Risk: Part II- Using Implied Volatility (IV)
click ↑ 4 Featured In a recent article titled What is Quantifying Risk: Part I- Using Delta, one methodology of measuring the risk of our covered call writing and cash-secured put trades was analyzed. In this article, implied volatility (IV) will be investigated as...
BCI PODCAST 155: Holding a Stock Through an Earnings Report Can Result in Impressive Returns
One of the BCI golden rules for covered call writing or selling cash-secured puts is: never sell an option with an upcoming earnings report due prior to contract expiration. Our choices are to avoid the stock completely or own it through the report and write the...
What is Quantifying Risk: Part I- Using Delta
click ↑ 4 Featured When analyzing the risk of our covered call writing or cash-secured put trades, we typically are referring to the exposure of losing capital. However, there is also the risk of exercise, which we may want to avoid. In the case of calls, it is the...
Can We Generate Significant Returns with a Defensive 4-Day Cash-Secured Put Trade?
click ↑ 4 Featured In bear and volatile markets, our cash-secured put trades (covered calls too) should be structured in a defensive manner. Greater protection to the downside typically means lower returns. That's the tradeoff. We may opt for weekly trades which...
Using the Zero-Dollar Collar to Protect Greatly Appreciated Shares
click ↑ 4 Featured We can use put options as a hedge against share price decline of our long stock positions. This may be particularly useful after exponential price acceleration, and we want to protect our unrealized gains. This would represent an insurance policy...
How to Set Up a Defensive Cash-Secured Put Trade in Challenging Market Conditions
click ↑ 4 Featured Cash-Secured Put and covered call trades can be established as traditional, aggressive or defensive. In March 2025, there was market uncertainty regarding the imposition of multiple tariffs and their potential negative impact on our economy and the...
BCI PODCAST 154: Selling Cash-Secured Puts Exit Strategies: The 3% Guideline
When selling cash-secured puts, exit strategies are an integral part of our goal to achieve maximum success. The 3% guideline assists us in determining when to close the short call if share price declines significantly. A real-life example with NVDA is used and...
How To Negotiate Better Option Prices Using The “Show or Fill Rule”
click ↑ 4 Featured Covered call writers & sellers of cash-secured puts generate cash flow by selling options, leveraging elite-performing stocks and ETFs. Options prices are published in option chains in the form of bid-ask spreads. We sell at the “bid” price and...
Selling Calls & Puts with the Same Stock in Mixed Market Conditions
click ↑ 4 Featured Covered call writing and selling cash-secured puts trades can be structured to be more aggressive (out-of-the-money-OTM) covered calls and slightly OTM cash-secured puts or to lean defensive (in-the-money- ITM) covered calls and deep OTM...
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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