Fundamental analysis is our first step in evaluating securities for use in the covered call writing strategy. It is a method of evaluating a company’s stock by examining its financial […]

A Review Of Fundamental Analysis for Covered Call Writing
Posted on August 10, 2013 by Alan Ellman in Fundamental Analysis, Investment Basics, Stock Investing

Unusual Options Activity: Speculation or Cheating?
Posted on July 27, 2013 by Alan Ellman in Investment Basics, Option Trading Basics, Stock Investing, Stock Option Strategies
Covered call writers are average retail investors looking to generate monthly cash flow in small but consistent increments and then compounding those profits. In time, it could lead to financial […]

Option Approval Levels For Our Brokerage Accounts
Posted on July 13, 2013 by Alan Ellman in Investment Basics, Option Trading Basics, Options Trade Execution, Stock Investing, Stock Option Strategies
Covered call writing along with all other stock and option strategies require us to open a brokerage account. This process will take more than a simple phone call. All brokerages […]

Analyzing The Time Value Of In-The-Money Strikes
Posted on July 6, 2013 by Alan Ellman in Investment Basics, Option Trading Basics, Options Calculations
Maximizing covered call writing profits requires us to master strike price selection. Very few covered call writers outside the BCI community use in-the-money strikes and, as a result, do not […]

Stock Exchanges: The New Way To Calculate Trading Volume
Posted on June 29, 2013 by Alan Ellman in Investment Basics, Stock Investing
In the BCI methodology for covered call writing, we require an average minimum daily trading volume for the underlying security of 250,000 shares or more. This is important because it […]

The CBOE BuyWrite Index (BXM) vs. The BCI System
Posted on June 22, 2013 by Alan Ellman in Investment Basics, Option Trading Basics, Stock Option Strategies
Several studies have been undertaken to determine the effectiveness of the covered call writing strategy. I believe that it is important to evaluate the parameters that are used as well […]

Special 1- Time Cash Dividends and Our Covered Call Positions
Posted on June 15, 2013 by Alan Ellman in Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
Every so often we will see a company declare a “special dividend” which is separate from the typical recurring dividend cycle, if there is one. It is frequently a reflection […]

Examining A Covered Call Trade
Posted on June 1, 2013 by Alan Ellman in Covered Call Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
Mastering covered call writing requires us to learn from our mistakes and not repeating them. We can then utilize a series of guidelines and rules that will guide us to […]

Stock Option Expiration Cycles: Beware Of Expiration Dates
Posted on May 25, 2013 by Alan Ellman in Investment Basics, Option Trading Basics
In the BCI methodology for covered call writing we use predominantly 1-month options. The reasons are as follows: Generate the highest annualized returns Allows us to avoid earnings reports, a […]

Covered Call Writing: The Case For 1-Month Options
Posted on March 30, 2013 by Alan Ellman in Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
I sell predominantly 1-month options when selling covered calls. This decision was NOT based on anything I read or was told, but rather on experience and common sense. Most stocks with […]
Podcast
- 114. The Poor Man's Covered Call Selecting the Best LEAPS Strikes
- 113. How to Select the Best Strikes for Collar Trades
- 112. Using Covered call Options and Stock Dividends in Low Interest Rate Environments
- 111. Rolling Down on a Sharp Market Decline at the end of a Contract
- 110. Exit Strategies Are Important But Must Be Timed Properly
- 109. Delta and Strike Selection for Covered call Writing
- 108. Establishing Our Cost Basis in a Multi Step Managed Trade
- 107: Even and Odd Stock Splits Understanding Contract Adjustments
- 106. "Hitting a Double" with Procter & Gamble: A Covered Call Writing Exit Strategy
- 105. The Poor Man's Covered Call: Rolling Options
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