Dec 7, 2024 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Put-selling, Stock Option Strategies
click ↑ 4 Featured What is a Collar Trade? The collar strategy consists of 3 legs: Buy stock (long position) Sell an out-of-the-money (OTM) call option (short call- ceiling) Buy an out-of-the-money protective put (long put- floor) Since a protective put debit is added...
Nov 30, 2024 | Covered Call Exit Strategies, Exchange-Traded Funds, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
click ↑ 4 Featured Our covered call writing trades offer 2 income streams when using out-of-the-money (OTM) call strikes. (Make that 3, if we incorporate dividends into the strategy). These consist of option premium + share appreciation from current market value up...
Nov 23, 2024 | Covered Call Exit Strategies, Exchange-Traded Funds, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
click ↑ 4 Featured Blue Collar Investors know that there are times we shouldn’t “settle” for maximum returns. In this article, a successful covered call trade with QQQM (an exchange-traded fund or ETF) will be analyzed, detailing how a maximum return...
Nov 2, 2024 | Covered Call Exit Strategies, Exit Strategies, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
click ↑ 4 Featured When our covered call trades are expiring in-the-money (ITM), we have an unrealized (shares are not yet sold) maximum return. This consists of option premium + any unrealized share appreciation from purchase price to the strike, if an...
Oct 26, 2024 | Covered Call Exit Strategies, Exchange-Traded Funds, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
click ↑ 4 Featured Hitting a Double is a covered call writing exit strategy where the short call is bought back after share price declines and resold when share price recovers. At expiration, we may decide to buy back the 2nd short call and sell the shares. This...
Oct 19, 2024 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
click ↑ 4 Featured An important BCI rule is never to write a covered call or sell a cash-secured put if there is an upcoming earnings report … too risky if the report disappoints and we don’t want to cap the upside if the report is favorable. There are...
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