Dec 28, 2013 | Investment Basics, Option Trading Basics, Stock Option Strategies
Selling 1-month options is a core principle in the BCI methodology for covered call writing. As interest in stock options has been growing exponentially so have the number and type of options products available. It’s all about supply and demand. Over the past...
Dec 21, 2013 | Covered Call Exit Strategies, Investment Basics, Option Trading Basics, Stock Option Strategies, Technical Analysis
Technical analysis is an integral part of our covered call writing decisions for both stock and option selections. It also impacts our exit strategy decisions. KORS has been a favorite of Blue Collar Investors for quite some time as a frequent member of our Premium...
Dec 14, 2013 | Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
Options Trading Basics includes the fact that one options contract incorporates 100 shares of the underlying security. The right or the obligation is for the purchase or sale of 100 shares of stock or exchange-traded funds. This is the rule but there are exceptions to...
Nov 30, 2013 | Covered Call Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Stock Investing, Stock Option Strategies
Covered call writing is a conservative strategy that encompasses a great deal of inherent application flexibility. In my first 3 books and DVD Programs I have discussed the use of LEAPS as a stock surrogate, protective puts, the use of cash-secured puts to enter a...
Nov 23, 2013 | Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
Two of the cornerstones of the BCI methodology for covered call writing involves selling options with 1-month expirations and avoiding earnings reports. Several of our astute members have inquired about selling 2-month options instead. The rationale is that all stocks...
Nov 16, 2013 | Investment Basics, Option Trading Basics, Technical Analysis
Technical analysis is an integral part of mastering covered call writing. This week’s article is a follow-up to an article posted on October 19th. In this week’s column I will discuss the MACD histogram which represents the difference between the MACD indicator and...