beginners corner
Archive | Investment Basics RSS feed for this section

Buying Back OTM Cash-Secured Puts on Expiration Friday to Avoid Potential Exercise + $25 Discount Coupon

click ↑ 4 Featured When cash-secured puts are sold, many investors prefer to avoid exercise and having the shares put to them. If the (originally) out-of-the-money (OTM) strike is in-the-money (ITM) as […]

6 Comments Continue Reading →

Selling Cash-Secured Puts: 2 Favorable Outcomes

click ↑ 4 Featured When we sell cash-secured puts (CSPs), we are getting paid to undertake the contractual obligation to buy the holders shares at a price that we (the […]

8 Comments Continue Reading →

Risk-Reward Profile When Rolling-Up Our Cash-Secured Put Trades

click ↑ 4 Featured One of our available cash-secured put trade exit strategies is rolling-up to generate an additional income stream (or multiple income streams). The disadvantage of this position […]

14 Comments Continue Reading →

Using the BCI Trade Management Calculator to Mitigate Losses + BCI-Only Webinar Registration Link

click ↑ 4 Featured Our covered call writing positions are at risk when share price declines substantially. We do have, however, our exit strategy arsenal to protect against catastrophic losses. […]

6 Comments Continue Reading →

How to Calculate Rolling-Up Cash-Secured Put Trades: The BCI Trade Management Calculator + $50.00 Discount Coupon

click ↑ 4 Featured When we roll-up our cash-secured put trades, we are required to place additional cash into our brokerage accounts to secure the higher strike 2nd trade. This […]

8 Comments Continue Reading →

How to Establish a Bear Market Cash-Secured Put Trade

click ↑ 4 Featured In bear and volatile market conditions, we may opt to take a defensive posture with our cash-secured put trades. One technique to accomplish this conservative approach […]

13 Comments Continue Reading →

How to Use Stock Options to Lower Our Breakeven Price Points: The Stock Repair Strategy

click ↑ 4 Featured Stock options can be used to mitigate losses on shares we own at a higher price than current market value. Some investors will buy more shares […]

7 Comments Continue Reading →

Analyzing the Pros & Cons of Rolling-Up a Covered Call Trade + Expected Price Movement Calculator Now Available

click ↑ 4 Featured There are times when our covered call writing trades turn out much better than anticipated, and share price rises exponentially after trade entry. Barry R. shared […]

11 Comments Continue Reading →

Is Covered Call Writing an Option Zero-Sum Strategy? + See Our New “Featured Product” Section

click ↑ 4 Featured Covered call writing is not a zero-sum strategy. Both the option-seller (call writer … us) and the call buyer can be successful. This article will provide […]

13 Comments Continue Reading →

How to Use the BCI Portfolio Setup Spreadsheet to Craft Our Put-Selling Portfolios

When we plan our covered call writing and cash-secured puts trades, we must focus in on diversification and cash allocation. In order to accomplish these goals, in April 2023, BCI […]

6 Comments Continue Reading →