Latest Insights in Stock Market Investing
How To Use Implied Volatility In Our Covered Call Writing Decisions
Understanding the Greeks, or factors that impact the value of our covered call premiums, is essential to mastering options trading basics and becoming an elite covered call writer. One of the Greeks (although not truly a Greek letter) is Vega, the amount an option...
Using Beta To Capture Higher Premium Returns
When using covered call writing and put-selling strategies it is important to set goals for initial returns in order to select the most appropriate underlying security and option. My goal for initial returns is 2% - 4% per month and a bit higher in a bull market...
Economic Reports And Our Covered Call Writing Decisions
Covered call writing and put-selling results are enhanced by selecting the best underlying securities and most appropriate options. Stock selection involves screening via fundamental and technical analysis as well as common sense screens (like avoiding earnings...
How Much Did That Stock Cost Us?/ How Much Did We Receive When We Sold It?/When Options Are Exercised
Covered call writing and put-selling generates monthly cash flow because we are selling option contracts and getting paid for undertaking the contract obligations. When a contract is exercised, we then enter another phase where we either buy or sell shares. The...
Implied Volatility: More Important Than Historical Volatility To Covered Call Writers And Put-Sellers
Understanding the concept of implied volatility is essential for successful covered call writing and selling puts. First, implied volatility gives us a window into the "market's" perception of future price movement. It will also allow us to calculate probability of a...
When Do We Sell Our Covered Call Writing Stocks?
Covered call writers know how important exit strategies are to our ultimate success. Position management skills must be activated when share price rises or falls dramatically and when dividends become an issue or when a strike is in-the-money as expiration of the...
Exchange-Traded Funds: Funding Option-Selling Portfolios With ETFs
For the strategies of covered call writing and selling cash-secured puts, we are selling the right, but not the obligation, to buy or sell 100 shares of the underlying security. That security can be a stock or and exchange-traded fund (ETF). In this article, I will...
Generating Profit When Share Price Declines 10% In Two Months
Can we use covered call writing and selling cash-secured puts to generate profits when share price declines by 10% in two months in a bear or volatile market environment? I am writing this article on January 5th, 2015, the worst day the market has experienced in over...
What Is Portfolio Margining?
Covered call writing and selling cash-secured puts are conservative strategies for risk-averse retail investors. This is why I feel most of us should be trading in cash accounts (no borrowing) and sheltered accounts whenever possible. For those of us who have higher...
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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