May 18, 2024 | Fundamental Analysis, Investment Basics, Option Trading Basics, Options Calculations, Put-selling, Stock Trading & Taxes
click ↑ 4 Featured Intuitively, at-the-money (ATM) calls and puts should be priced the same. In most instances, this is not the case. ATM calls are generally priced higher than ATM puts. Why? The reason would center around the cost of carry. The buyer of a...
May 4, 2024 | Exchange-Traded Funds, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
click ↑ 4 Featured Some members of our BCI community have expressed to me that meaningful income cannot be generated selling weekly covered call or put options during a holiday-shortened trading week. This article is designed to debunk that hypothesis, using a...
Apr 27, 2024 | Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Put-selling, Stock Option Strategies
click ↑ 4 Featured When we sell cash-secured puts, we have 2 possible outcomes. If unexercised, we generate cash flow or, if exercised, we buy the underlying security at a discount. This article will provide a blueprint as how to craft our put-selling...
Apr 20, 2024 | Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
click ↑ 4 Featured The Poor Man’s Covered Call (PMCC) is a covered call writing-like strategy where LEAPS options are purchased instead of actual stocks or exchange-traded funds (ETFs). Weekly or monthly short calls are written against the long calls. LEAPS...
Apr 13, 2024 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
click ↑ 4 Featured We enter a covered call trade and share price rises exponentially, leaving the strike deep in-of-the-money (ITM). Should we close the position since we cannot benefit from additional share appreciation? Should we take no action and continue to...
Apr 6, 2024 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
click ↑ 4 Featured When we execute our covered call writing trades, we base our decisions on sound fundamental, technical and common-sense principles. To master our option strategies and elevate our returns to the highest possible levels, we must analyze our trades to...
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