Sep 27, 2025 | Fundamental Analysis, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies, Technical Analysis
click ↑ 4 Featured Cash-secured put trades can be crafted conservatively by using deep out-of-the-money (OTM) strikes. On 5/27/2025, I executed such a 4-day trade with NetEase Inc. (Nasdaq: NTES), a stock on our premium member watch list at the time. This article will...
Sep 20, 2025 | Fundamental Analysis, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Put-selling, Stock Option Strategies
click ↑ 4 Featured When establishing our covered call portfolios (cash-secured puts, too), our strike selection is influenced by current market conditions. In normal-to-bull markets, we favor out-of-the-money (OTM) strikes which allow for a 2-income stream potential...
Sep 13, 2025 | Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Put-selling, Stock Option Strategies
click ↑ 4 Featured When a cash-secured put is sold, we agree to buy the shares at the strike price by the expiration date. We, the option-sellers, determine those 2 parameters. In our BCI methodology, we favor out-of-the-money (OTM) put strikes. In bear and volatile...
Sep 6, 2025 | Fundamental Analysis, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Put-selling, Stock Option Strategies
click ↑ 4 Featured In a recent article titled What is Quantifying Risk: Part I- Using Delta, one methodology of measuring the risk of our covered call writing and cash-secured put trades was analyzed. In this article, implied volatility (IV) will be investigated as...
Aug 30, 2025 | Fundamental Analysis, Investment Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
click ↑ 4 Featured When analyzing the risk of our covered call writing or cash-secured put trades, we typically are referring to the exposure of losing capital. However, there is also the risk of exercise, which we may want to avoid. In the case of calls, it is the...
Aug 21, 2025 | Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Put-selling, Stock Option Strategies
click ↑ 4 Featured In bear and volatile markets, our cash-secured put trades (covered calls too) should be structured in a defensive manner. Greater protection to the downside typically means lower returns. That’s the tradeoff. We may opt for weekly trades which...
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