Dec 28, 2024 | Fundamental Analysis, Investment Basics, Option Trading Basics, Options Trade Execution, Stock Option Strategies
click ↑ 4 Featured We sell a covered call or cash-secured put and the cash is immediately placed into our broker cash account. Next, we check our account value, and it did not go up! In some cases, it went down! Where did the option premium money go? This article will...
Nov 16, 2024 | Fundamental Analysis, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
click ↑ 4 Featured When writing covered calls in bear and volatile markets, we may choose to take a defensive posture and use in-the-money call strikes which offer additional downside protection in the form of intrinsic value. We can take this approach to an even...
Sep 28, 2024 | Fundamental Analysis, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
click ↑ 4 Featured When crafting our covered call writing trades, we can do so aggressively, using out-of-the-money (OTM) call options, or defensively, using in-the-money (ITM) strikes. In this article, a real-life example with GigaCloud Technology Inc. (Nasdaq: GCT),...
Sep 21, 2024 | Exchange-Traded Funds, Fundamental Analysis, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
click ↑ 4 Featured When we sell weekly cash-secured puts or write weekly covered calls, our trades are, typically, entered on Monday and completed on Friday. This avoids the weekend risk of longer-dated options. These Monday-Friday entries may create inflated initial...
Sep 14, 2024 | Exchange-Traded Funds, Fundamental Analysis, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
click ↑ 4 Featured Covered call writers and put sellers frequently inquire about generating positive cash flow when the market crashes or in confirmed bear markets as we had in 2008 (real estate crash) and in 2022 (COVID-related crash). Over the years, I have written...
Sep 7, 2024 | Fundamental Analysis, Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
click ↑ 4 Featured When we sell covered calls or cash-secured puts, we access option-chains to determine the value of the premiums we are selling. This article will highlight the factors that determine these prices and compare them to the prices generated by option...
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