Feb 1, 2025 | Fundamental Analysis, Investment Basics, Option Trading Basics, Options Calculations, Stock Investing, Stock Option Strategies
click ↑ 4 Featured Implied volatility (IV) can be used to establish approximate upper and lower ends of trading ranges for our covered call and put-selling trades. The BCI Expected Price Movement Calculator was designed for purpose. Delta can also be used to establish...
Jan 4, 2025 | Fundamental Analysis, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
click ↑ 4 Featured When we sell covered call or cash-secured put options, there are 2 dates we should factor into our trade decisions. Earnings reports (ER) dates must be considered 100% of the time and ex-dividend dates are important in certain specific scenarios. In...
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...
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