Covered call writing and put-selling candidates must pass a series of fundamental, technical and common-sense screens in order to be considered eligible for our portfolios. In early January 2017, one of our members, Jim W, asked about using Ford Motor Corp. (F), a stock that does not pass our BCI screens but has several positive […]

Indexing: A Key Component to Successful Long-Term Investing
In my book, Stock Investing for Students, I develop a long-term investment plan to achieve financial independence and an early retirement. The plan is initiated by using broad market index funds. This article will highlight the reasons why I favor passively-managed mutual funds to their actively-managed counterparts. First, some definitions. Definitions Index fund: A type […]

Psychology of Stock and Option Investing: Ten Years of Observations
QUESTIONS FOR COVERED CALL WRITERS AND PUT-SELLERS: Why do retail investors buy high and sell low? Why do we sell our winners and keep our losers? Why do many of us feel that the market is rigged in favor of Wall Street insiders? Boy am I starting off on the wrong foot with this article! I’ll […]

GAAP versus Non-GAAP Earnings: Challenges of Fundamental Analysis
Fundamental analysis is the first step when screening stocks for covered call writing and put-selling. Years ago I actually read the financial statements of companies I was interested in. I eventually came to the conclusion that this was an exercise in futility as it was time-consuming and, in many cases, difficult to confirm the accuracy of […]

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 […]
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