Locating stocks for covered call writing and put-selling is the first step as we prepare to execute these income-generating strategies. In the BCI methodology we use a three-pronged approach to screening for these underlying securities: Fundamental analysis Technical analysis Common sense principles (like minimum trading volume etc.) In my books and DVDs I encourage all option-sellers […]
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Using Fundamental Analysis To Screen For Option-Selling Stocks
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 of additionalther resources to locate elite candidates to serve as the […]
A Review Of Fundamental Analysis for Covered Call Writing
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 the medium by which a company discloses its financial health. We only accept equities […]
Covered Call Writing – Fundamental and Technical Analysis: Earnings and Price Strength Analysis
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 Technical analysis Common sense principles The details of the entire screening process are discussed in my books and DVDs and in […]
The 10 Most Common Mistakes Made By Covered Call Writers And How To Avoid Them
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 knowledgeable about covered call writing you will immediately tie him to a chair, put tape over […]
Covered Call Writing: Managing Stocks That Have Gapped Down
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 by factors such as […]
Fundamental Ratios: P/E, PEG and PEGY
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 Street Fact: A high P/E represents an over-valued stock and one […]
Podcast
- 68. Volatility A Friend or Enemy to Covered call Writers and Put Sellers?
- 67. Should We a Short Put to Help Fund a Collar Trade?
- 66. Comparing the Cost-To-Close Covered Call Trades with Time-Value Return Goals
- 65: The 20%/10% Guidelines for Covered call Writing and Selling Cash-Secured Puts
- 64. Creating Dividend Like Income for Non Dividend Stocks
- 63. Rolling Decisions on Expiration Friday
- 62. Should I Unwind My Covered Call Trade 1 Week Prior to Contract Expiration?
- 61. Realized Versus Unrealized Capital Gains (Losses) for Covered Call Writing
- 60. Combining ITM Call Strikes & Stock Dividends to Protect in Bear Markets
- 59. ANALYZING 2 Month and 4-Day Covered Call Trades
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