How to Enter & Calculate Closing a Weekly Put Trade After Rolling the Option in the Same Contract Cycle + Alan’s Wealth365 Webinar Registration Link

How to Enter & Calculate Closing a Weekly Put Trade After Rolling the Option in the Same Contract Cycle + Alan’s Wealth365 Webinar Registration Link

Oct 1, 2022 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Trade Execution, Put-selling, Stock Option Strategies

When we sell cash-secured puts, we are undertaking the contractual obligation to buy shares at the strike price by the expiration date. The option seller (that’s us) sets those parameters. In return, we receive a cash premium. The implementation of exit strategy...
How to Manage a 5.3% Mid-Contract Unrealized Gain: A Real-Life Example with BHP Group Limited (NYSE: BHP) + Alan’s Wealth365 Webinar Registration Link

How to Manage a 5.3% Mid-Contract Unrealized Gain: A Real-Life Example with BHP Group Limited (NYSE: BHP) + Alan’s Wealth365 Webinar Registration Link

Sep 17, 2022 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies

When we have a maximum mid-contract unrealized gain on a trade, there are opportunities when we can generate additional income streams and, thereby, enjoy higher than initial maximum returns. There are also scenarios when we should take no action and continue to...
How to Enter Our Rolling-Out-And-Up Trades into Our Monthly Trading Logs

How to Enter Our Rolling-Out-And-Up Trades into Our Monthly Trading Logs

Sep 10, 2022 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies

In our last blog article, we discussed how to enter our rolling-out trades into our covered call writing trading logs. This article will highlight the additional considerations when rolling our covered call trades out-and-up.   Trade log challenges when...
Will My Stock Be Sold Because of the $2.00 Dividend? A Real-Life Example with Star Bulk Carriers Corp. (Nasdaq: SBLK)

Will My Stock Be Sold Because of the $2.00 Dividend? A Real-Life Example with Star Bulk Carriers Corp. (Nasdaq: SBLK)

Aug 13, 2022 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Stock Investing, Stock Option Strategies

On 2/21/2022, Bob wrote a 3/17/2022 $29.00 call on SBLK. On 2/26/2022, SBLK was trading at $31.76 and the cost-to-close the short call was $2.78. On 3/1/2022, SBLK was going ex-dividend for an eventual $2.00 per-share distribution. Will Bob’s shares be sold the...
Covered Call Writing & Selling Cash-Secured Puts: Strategies or Exit Strategies? A Real-Life Example with T-Mobile US Inc. (Nasdaq: TMUS)

Covered Call Writing & Selling Cash-Secured Puts: Strategies or Exit Strategies? A Real-Life Example with T-Mobile US Inc. (Nasdaq: TMUS)

Aug 6, 2022 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Put-selling, Stock Option Strategies

Covered call writing and selling cash-secured puts are low-risk option-selling strategies seeking to generate weekly or monthly cash-flow. Can these basic strategies be considered exit strategies as well? In this article, I will make the case that, yes, they can be...