Will My Stock Be Sold Because of the $2.00 Dividend? A Real-Life Example with Star Bulk Carriers Corp. (Nasdaq: SBLK)

Will My Stock Be Sold Because of the $2.00 Dividend? A Real-Life Example with Star Bulk Carriers Corp. (Nasdaq: SBLK)

Aug 13, 2022 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Stock Investing, Stock Option Strategies

On 2/21/2022, Bob wrote a 3/17/2022 $29.00 call on SBLK. On 2/26/2022, SBLK was trading at $31.76 and the cost-to-close the short call was $2.78. On 3/1/2022, SBLK was going ex-dividend for an eventual $2.00 per-share distribution. Will Bob’s shares be sold the...
Covered Call Writing & Selling Cash-Secured Puts: Strategies or Exit Strategies? A Real-Life Example with T-Mobile US Inc. (Nasdaq: TMUS)

Covered Call Writing & Selling Cash-Secured Puts: Strategies or Exit Strategies? A Real-Life Example with T-Mobile US Inc. (Nasdaq: TMUS)

Aug 6, 2022 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Put-selling, Stock Option Strategies

Covered call writing and selling cash-secured puts are low-risk option-selling strategies seeking to generate weekly or monthly cash-flow. Can these basic strategies be considered exit strategies as well? In this article, I will make the case that, yes, they can be...
Rolling-In Covered Call Trades + New Book Discount Offer Expiring

Rolling-In Covered Call Trades + New Book Discount Offer Expiring

Jul 30, 2022 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies

Exit strategy implementation is a critical aspect of successful covered call writing and put-selling strategies. Over the years, we have discussed rolling options as an integral part of our position management arsenal. This article will detail a new rolling...
How to Enter Our Rolling-Out Cash-Secured Put Trades into Our Trading Logs + New Book Discount Offer

How to Enter Our Rolling-Out Cash-Secured Put Trades into Our Trading Logs + New Book Discount Offer

Jul 23, 2022 | Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Put-selling, Stock Option Strategies

When we roll-out a cash-secured put trade, we are spanning 2 contract cycles. This article will detail how to enter and close our trades into our trading logs to best reflect the results over multiple time frames.   What is rolling-out an ITM put strike? This is...
Hitting a Double: The BCI Trade Management Calculator in Action + Final Chance to Register for Tuesday’s Webinar

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

Jul 9, 2022 | Covered Call Exit Strategies, Exchange-Traded Funds, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies

“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 share with us his trades with SPDR S&P Biotech ETF (NYSE: XBI) where he...
Enhancing Gains with the Mid-Contract Unwind Exit Strategy: The BCI Trade Management Calculator in Action + Free Webinar Registration Link

Enhancing Gains with the Mid-Contract Unwind Exit Strategy: The BCI Trade Management Calculator in Action + Free Webinar Registration Link

Jul 2, 2022 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies

After entering our covered call trades and share price rises substantially, there are often opportunities to generate a 2nd inc0me stream by closing both legs of the original trade and entering a new one with a different underlying security. In the BCI methodology,...