Covered call writing, like most investment strategies, has a certain risk/reward profile relating to potential profits and losses. A profit and loss graph is a graphical representation of the potential […]
When And Why Will My In-The-Money Strike Be Exercised?
Covered call writers receive option premiums for undertaking the obligation to sell our shares to the option holder if that holder decides to exercise that right. Understanding when and why […]
Covered Call Writing: Setting Up A Stop Loss Order
Successful covered call writing requires the appropriate use of exit strategies to mitigate losses and enhance gains. In today’s article, we will focus on actions that can be taken when a […]
Why Use Technical Analysis: An Example Of A Complete Technical Breakdown
Technical analysis or fundamental analysis…which should we use in the stock selection process for covered call writing? Many sophisticated investors can make an impressive argument for one or the other. […]
Examining A Covered Call Trade
Mastering covered call writing requires us to learn from our mistakes and not repeating them. We can then utilize a series of guidelines and rules that will guide us to […]
Should I Roll My Option When The Stock Price Is DEEP In-The-Money?
Exit strategy execution is a critical skill every covered call writer should master. In addition to managing positions where share price has decreased there are also situations where we can […]
Covered Call Writing In India
I recently learned that covered call writing comes in all shapes and sizes. Although we are honored to have a significant number of international members, most trade US stocks on […]
The 10 Most Common Mistakes Made By Covered Call Writers And How To Avoid Them
Your neighbor bursts into your house and exclaims “I just read this article…You buy a stock and sell an option and cash flows into your account instantly. It’s a miracle! I’m getting […]
“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 […]
“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 […]
Podcast
- 114. The Poor Man's Covered Call Selecting the Best LEAPS Strikes
- 113. How to Select the Best Strikes for Collar Trades
- 112. Using Covered call Options and Stock Dividends in Low Interest Rate Environments
- 111. Rolling Down on a Sharp Market Decline at the end of a Contract
- 110. Exit Strategies Are Important But Must Be Timed Properly
- 109. Delta and Strike Selection for Covered call Writing
- 108. Establishing Our Cost Basis in a Multi Step Managed Trade
- 107: Even and Odd Stock Splits Understanding Contract Adjustments
- 106. "Hitting a Double" with Procter & Gamble: A Covered Call Writing Exit Strategy
- 105. The Poor Man's Covered Call: Rolling Options
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