Nov 2, 2024 | Covered Call Exit Strategies, Exit Strategies, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
click ↑ 4 Featured When our covered call trades are expiring in-the-money (ITM), we have an unrealized (shares are not yet sold) maximum return. This consists of option premium + any unrealized share appreciation from purchase price to the strike, if an...
Oct 26, 2024 | Covered Call Exit Strategies, Exchange-Traded Funds, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
click ↑ 4 Featured Hitting a Double is a covered call writing exit strategy where the short call is bought back after share price declines and resold when share price recovers. At expiration, we may decide to buy back the 2nd short call and sell the shares. This...
Oct 19, 2024 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
click ↑ 4 Featured An important BCI rule is never to write a covered call or sell a cash-secured put if there is an upcoming earnings report … too risky if the report disappoints and we don’t want to cap the upside if the report is favorable. There are...
Oct 5, 2024 | Covered Call Exit Strategies, Exchange-Traded Funds, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
click ↑ 4 Featured When we construct our covered call writing and cash-secured put portfolios, we must incorporate cash allocation into our investment decisions. In this article, The BCI Portfolio Setup Spreadsheet, the Trade Management Calculator (TMC) and the...
Aug 17, 2024 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
click ↑ 4 Featured Option trading and covered call writing, in particular, have become increasingly popular over the past several years. As our membership has been growing more than ever, we have a large number of Blue Collar Investors who are relatively new to the...
Jul 13, 2024 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
click ↑ 4 Featured Covered call writers will frequently find themselves in a position where the short call is expiring in-the-money (ITM), while still wanting to use the same underlying shares for the next contract cycle. How should this be managed? 3-approaches...