Apr 11, 2015 | Fundamental Analysis, Investment Basics, Option Trading Basics
Fundamental analysis, technical analysis and common sense principles make up the 3-pronged screening system used in the BCI methodology for locating option selling stocks. We start with the IBD 50 and move to the other screens from there but I always encourage the use...
Aug 10, 2013 | Fundamental Analysis, Investment Basics, Stock Investing
Fundamental analysis is our first step in evaluating securities for use in the covered call writing strategy. It is a method of evaluating a company’s stock by examining its financial statements, including earnings and sales. The 3 major financial statements are...
Mar 23, 2013 | Fundamental Analysis, Investment Basics, Stock Investing
Successful covered call writing requires discipline and appropriate analysis specific for this great strategy. In the Blue Collar Investor (BCI) methodology we incorporate three major screening components before we even look at options chains: Fundamental analysis...
Feb 16, 2013 | Covered Call Exit Strategies, Fundamental Analysis, Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies, Stock Trading & Taxes
Your neighbor bursts into your house and exclaims “I just read this article…You buy a stock and sell an option and cash flows into your account instantly. It’s a miracle! I’m getting started tomorrow” If you are a good neighbor and...
Dec 24, 2011 | Fundamental Analysis
Every once in a while, when using our covered call writing strategy a stock will gap up or down. A gap is a break between prices on a chart that occurs when the price of a stock makes a sharp move up or down with no trading occurring in between. Gaps can be created...
Jun 25, 2011 | Fundamental Analysis
Years ago, investors, stock brokers and financial advisors wanted to know the “P/E” of the equity before making a buy-decision. A low P/E meant that the stock was cheap and market forces would lead to price appreciation. The opposite theory also was considered Wall...
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