beginners corner
Archive | Exchange-Traded Funds RSS feed for this section

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

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%? […]

10 Comments Continue Reading →

Application of the 20%/10% Guidelines for ITM & OTM Strikes + Registration Form for Thursday’s Webinar

One of the key methods to partially automate our covered call writing exit strategy arsenal is to place buy-to-close (BTC), good until cancelled (GTC) limit orders to close our short […]

13 Comments Continue Reading →

Understanding the Math When Rolling ITM Covered Calls Out-And-Up: A Real-Life Example with Utilities Select Sector SPDR Fund (NYSE: XLU) + Save the Date May 11th

All strategies, including covered call writing and selling cash-secured puts, have their pros and cons. The same holds true for the exit strategies associated with them. Several of our members […]

12 Comments Continue Reading →

Reverse Covered Call Writing: A Reasonable Bear Market Strategy? A Real-Life Example with SPDR S&P ETF Trust (NYSE: SPY)

Covered call writing is defined as first purchasing or already owning the underlying security and then selling the corresponding call option. By doing so, we are protected; we know our […]

9 Comments Continue Reading →

Comparing Nasdaq 100 ETFs: Real-Life Examples with QQQ & QQQM

Over the years, the most frequently used ETF in my portfolios has been Invesco QQQ Trust (Nasdaq: QQQ). Premium members have noticed that, lately, a relatively new eligible security in […]

9 Comments Continue Reading →

Hitting a Double: The BCI Trade Management Calculator in Action + Final Chance to Register for Tuesday’s Webinar

“Hitting a double” involves buying back the short call using our 20%/10% guidelines and then re-selling that same option when share price recovers. On 3/13/2019, Mario was kind enough to […]

12 Comments Continue Reading →

Mitigating Losses by Rolling-Down During a Severe Market Decline: The BCI Trade Management Calculator in Action + Free Webinar Registration Link

Rolling-down is one of our frequently used covered call writing exit strategies. During the January 2022 contracts, there was a 5% market decline due to COVD-19, inflation and interest rate […]

9 Comments Continue Reading →

The Poor Man’s Covered Call LEAPS Selection: A Real-Life Example with SPDR S&P 500 ETF Trust (NYSE: SPY)

Before initiating a poor man’s covered call trade (PMCC), we must first master all aspects of the strategy including understanding the pros and cons inherent in this system. Once we […]

13 Comments Continue Reading →

Collar Strategy Using Weekly Calls and Monthly Puts: A Real-Life Example with LABU

The collar strategy is a covered call writing-like strategy where protective puts are added to our covered call trades. This creates a ceiling (the short call) and a floor (the […]

19 Comments Continue Reading →

Best Technology ETFs for Our Option-Selling Portfolios: QQQ and XLK

When seeking to add a technology presence to our covered call writing and put-selling portfolios, we can do so by using exchange-traded funds (ETFs) based on technology benchmarks. Two such […]

18 Comments Continue Reading →