Jan 20, 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 Always avoid having an option in place if there is an upcoming earnings report prior to contract expiration. This applies to covered call writing and selling cash-secured puts as it will avoid the risk inherent in the reports. However, once the...
Jan 13, 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 When we integrate both covered call writing and selling cash-secured puts into one multi-tiered option selling strategy, we have our Put-Call-Put or PCP Strategy. Outside the BCI community, this is often referred to as the wheel strategy....
Dec 9, 2023 | Covered Call Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
click ↑ 4 Featured Populating our covered call writing and put-selling monthly portfolios during earnings season can be challenging as we seek to avoid companies about to report earnings. This is the most important rule in the BCI methodology. All other...
Nov 4, 2023 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
click ↑ 4 Featured Our covered call writing positions are at risk when share price declines substantially. We do have, however, our exit strategy arsenal to protect against catastrophic losses. This article will show a real-life example of such a scenario with Novo...
Oct 28, 2023 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Trade Execution, Stock Option Strategies
click ↑ 4 Featured When we roll-up our cash-secured put trades, we are required to place additional cash into our brokerage accounts to secure the higher strike 2nd trade. This article will detail how to accurately calculate both initial and rolling-up trades using...
Oct 14, 2023 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Investing, Stock Option Strategies
click ↑ 4 Featured Stock options can be used to mitigate losses on shares we own at a higher price than current market value. Some investors will buy more shares at the new lower price and average-down, thereby adding more cash to an already losing trade. This article...
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