As safe a strategy as covered call writing is there is some risk; the risk is in purchasing the stock, not in selling the option. For this reason, some investors […]
Modern Portfolio Theory (MPT)- How Financial Advisors Invest Your Money
Mastering covered call writing has taught many of us how to self-invest. In the past, we depended on financial managers to handle our hard-earned money. In the hands of the […]
Mastering Covered Call Writing: Learning From Your Mistakes by guest author Laurie Itkin
Sophia Loren once said, “It’s better to explore life and make mistakes than to play it safe. Mistakes are part of the dues one pays for a full life.” I […]
“Hitting a Double”- A Bullish Early-Contract Exit Strategy
Maximizing covered call writing returns requires the use of a series of exit strategies. One of the most common mistakes covered call writers are guilty of is not managing trades […]
Delta and Our Covered Call Writing Decisions
When studying option trading basics and the Greeks we learn about our exposure to risk. Those of us who study options are constantly reading and hearing that delta, one of the Greeks, is […]
Compounding our Covered Call Writing Profits
When studying investment basics, I’m reminded of a quote from none other than Albert Einstein who called compounding “the greatest mathematical discovery of all time”. Stated differently, a dollar received today is worth […]
Ask Alan – Early Exercise of Covered Call Options
Alan answers a question from Scott of Los Angeles, CA. Scott asks, “At the beginning of a contract period you sell a $40 out-of-the-money call after purchasing the stock for […]
“Pinning the Strike”: A Covered Call Writing Consideration
When considering covered call exit strategies on or near expiration Friday we compare the market price of our stock to the strike price sold. If the share value is even […]
Ask Alan – Finalizing Our Covered Call Watch List and Stock Selection
Alan answers a question fromJosh of Walnut Creek, CA. Josh writes… "I’m an experienced, fundamentally oriented, value investor, but over the years I’ve migrated more and more towards quantitative stock […]
Recent Comments