Nov 2, 2013 | Exchange-Traded Funds, Investment Basics, Stock Investing, Stock Option Strategies
Our premium members receive a weekly report of exchange-traded funds (ETFs) appropriate for covered call writing. These lists will never include a leveraged ETF because we feel that these securities are too risky and suitable only for sophisticated investors with...
Oct 5, 2013 | Exchange-Traded Funds, Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
Traditional covered call writing consists of buying a stock or exchange-traded fund (ETF) and selling a call option to generate cash flow. Frequently BCI members will think outside the box and add additional strategies and products to create a covered call...
Feb 23, 2013 | Exchange-Traded Funds
Covered call writers can use individual stocks or exchange-traded funds as the underlying securities. Each has its own set of advantages and disadvantages. In this article we will explore the mechanism behind ETFs and evaluate the pros and cons of incorporating them...
Feb 2, 2013 | Exchange-Traded Funds, Option Trading Basics, Stock Option Strategies
Last month I published an article titled Complex and Leveraged Exchange-Traded Funds. I discussed the goals and risks associated with many of these products. One of the topics examined was Inverse Exchange-Traded Funds. Here is a brief review: Inverse ETFs use...
Jan 19, 2013 | Exchange-Traded Funds, Stock Option Strategies
With more and more Blue Collar Investors using online discount brokers as their trading platforms the need to be aware of the risks of complex and leveraged exchange-traded funds has become critical. Buyer beware! Covered calls can be written on many of these...
Dec 1, 2012 | Exchange-Traded Funds, Investment Basics, Stock Option Strategies
A critical requirement of my covered call writing system is to be properly diversified by stock, industry and cash allocation. No one stock or industry should represent more than 20% of your portfolio holdings. Owning five different stocks in five different industries...
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