Analyzing the Pros & Cons of Rolling-Up a Covered Call Trade + Expected Price Movement Calculator Now Available

Oct 7, 2023 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies

click ↑ 4 Featured There are times when our covered call writing trades turn out much better than anticipated, and share price rises exponentially after trade entry. Barry R. shared with me a series of trades he executed with E.L.F. Beauty, Inc. (NYSE: ELF), where the...
Is Covered Call Writing an Option Zero-Sum Strategy? + See Our New “Featured Product” Section

Is Covered Call Writing an Option Zero-Sum Strategy? + See Our New “Featured Product” Section

Sep 30, 2023 | Covered Call Exit Strategies, Investment Basics, Just Alan, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies

click ↑ 4 Featured Covered call writing is not a zero-sum strategy. Both the option-seller (call writer … us) and the call buyer can be successful. This article will provide a hypothetical example, demonstrating a scenario where both call buyer and seller end up...
When Should I Take My Profits with a Successful Covered Call Writing Trade?

When Should I Take My Profits with a Successful Covered Call Writing Trade?

Sep 9, 2023 | Covered Call Exit Strategies, Exchange-Traded Funds, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies

Which %, if any, of our original covered call writing initial time-value return, should we use to close both legs of the trade, and guarantee a realized return? 60%? 75%? Higher? Lower? Closing both legs of a covered call writing trade mid-contract is known as the...
Comparing Covered Call Writing & Cash-Secured Puts in Bull Market Environments

Comparing Covered Call Writing & Cash-Secured Puts in Bull Market Environments

Aug 19, 2023 | Covered Call Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies

Covered call writing versus cash-secured puts in bull markets … which is better? This article will present the arguments for both and make a case why I prefer covered call writing in favorable, uptrending market conditions. The case for cash-secured puts (CSP)...
Should I Allow Exercise & Repurchase the Stock or Roll the Option?: A Real-Life Example with Tesla, Inc. (Nasdaq: TSLA)

Should I Allow Exercise & Repurchase the Stock or Roll the Option?: A Real-Life Example with Tesla, Inc. (Nasdaq: TSLA)

Jun 24, 2023 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Stock Option Strategies

The crafting and managing of our covered call writing trades are directly dependent on our pre-defined goals. In this article, we will analyze a TSLA covered call trade where the strike was about to expire in-the-money (ITM) and exercise was inevitable if no action is...