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Covered call writing and special cash dividends

Special 1- Time Cash Dividends and Our Covered Call Positions

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 […]

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Covered call writing using the Blue collar Investor methodology

Examining A Covered Call Trade

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 […]

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stock option expiration cycles

Stock Option Expiration Cycles: Beware Of Expiration Dates

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 […]

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Covered Call Writing: The Case For 1-Month Options

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 […]

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Then Blue Collar Investor methodology for screening covered call writing candidates

Covered Call Writing – Fundamental and Technical Analysis: Earnings and Price Strength Analysis

Successful covered call writing requires discipline and appropriate analysis specific for this great strategy. In the Blue Collar Investor (BCI) methodology we incorporate three major screening components before we even […]

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The 10 Most Common Mistakes Made By Covered Call Writers And How To Avoid Them

Your neighbor bursts into your house and exclaims “I just read this article…You buy a stock and sell an option and cash flows into your account instantly. It’s a miracle! I’m getting […]

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option liquidity

What Is Slippage And How Does It Impact Our Trading Success?

When studying investment basics, the term slippage has two applications. In general, it means having a trade executed at a price less favorable to the trader. Let’s look at the […]

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Covered call writing index

Covered Call Writing and Exchange-Traded Funds

A critical requirement of my covered call writing system is to be properly diversified by stock, industry and cash allocation. No one stock or industry should represent more than 20% […]

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Pre-market activity

S&P Futures and Fair Value.

Many covered call writers start their day by tuning in to CNBC. They look to the lower right side of the TV screen and see: The S&P Futures are UP […]

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