Exit strategy preparation and implementation is one of the 3 required skills for successful covered call writing and put-selling. Because of the time value erosion of our options (Theta), there […]
Combining Dividend Capture with Covered Call Writing: Pros and Cons
Why not use covered call writing with only dividend-bearing stocks to generate three income streams; option premium, share appreciation to the (out-of-the-money) call strike plus the dividend itself? This article […]
Writing Naked Calls on Poorly-Performing Stocks
Selling covered calls and cash-secured puts are the main strategies highlighted in our BCI community. Much of the information disseminated on the Blue Collar site, books and DVDs is based […]
Inverse Exchange-Traded Funds versus Shorting Stocks
In bear markets, one of the tools we can benefit from with our covered call writing and put-selling strategies is inverse exchange-traded funds (ETFs). An inverse ETF is also known […]
Russell Rebalancing Day: A Cause for Concern?
Covered call writers and put-sellers are aware of the value to avoiding risky events like earnings announcements. An impending FDA announcement regarding the efficacy of a new drug being tested […]
Mitigating Losses After a Disappointing Earnings Pre-Announcement
A critical BCI rule for covered call writing is never to sell an option if there is an upcoming earnings report prior to contract expiration. Earnings reports are risky events […]
Special 1-Time Cash Dividends for Stocks with Improving Technicals
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 […]
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 […]
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 […]
Using Delta to Determine the Amount of Risk in Our Option-Selling Positions
Covered call writing and selling cash-secured puts are low-risk option-selling strategies used to generate monthly cash flow. Low-risk does not mean no risk so how can we measure the degree […]
Podcast
- 126. Analyzing the Status of a Rolling-Down Trade
- 124. Dividends and After-Hours News Causing Exercise of OTM Call Strikes
- 123. Implied Volatility, IV Rank and IV Percentile Defined and Practical Applications
- BCI PODCAST 122: Should I Roll-Out My Deep In-The-Money Call Option Mid-Contract?
- BCI PODCAST 121: What is a SPAC (Special Purpose Acquisition Company)?
- 120. Using the Nasdaq-100 Volatility Index (VOLQ) in Covered Call Writing Decisions
- 119. Establishing Our Cost-Basis for Long-Term Holdings
- 118. Adjusting Our Portfolio Mix to Achieve Diversification and Cash Allocation
- 117. When a Covered Call Strike Moves $1000.00 In-The-Money
- 116. How to Execute a Covered Call Trade with a Buy/Write Combination Form
A note about this week's ETF report: There are several new editions to this week’s report with high implied volatility.…
Premium members: This week's 5-page report of top-performing ETFs, along with our sample trade of the week, has been uploaded…
Elliot, This is managed by adding the dividend amount to the option premium and making a note in the associated…