Jun 24, 2023 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Stock Option Strategies
The crafting and managing of our covered call writing trades are directly dependent on our pre-defined goals. In this article, we will analyze a TSLA covered call trade where the strike was about to expire in-the-money (ITM) and exercise was inevitable if no action is...
Jun 17, 2023 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
After entering our covered call trades, we immediately go into position management mode. Frequently, we can take advantage of a covered call exit strategy opportunity, sometimes more than one. This article will review a trade shared with me by Jim, where his covered...
Jun 10, 2023 | Ask Alan, Covered Call Exit Strategies, Investment Basics, Just Alan, Option Trading Basics, Options Trade Execution, Stock Option Strategies
On 12/9/2022, Patrik sent me an email he titled “Covered Call Panic” He shared with me information on his trades and was distraught at the current outcome. This article will analyze whether Patrik actually needed Kleenex to cry over these trades or,...
Jun 3, 2023 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
The PMCC is a covered call writing-like strategy where LEAPS options act as surrogates for the underlying stock or ETF. It is technically called a long call diagonal debit spread and has the advantage of lower cost to enter the trade when compared to traditional...
May 27, 2023 | Covered Call Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
In this article, we will analyze a series of covered call trades shared with me by a BCI premium member. These trade executions involve establishing a bullish covered call position, then rolling-down and then rolling-out. All of our trades serve as learning...
May 20, 2023 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution
Covered call writing exit strategies can involve trade adjustments over 1 or more expiration cycles. This article will analyze a series of trades shared with me by Ken, where the share price of IBKR declined after entering the trade and a decision to retain the shares...
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