Dec 3, 2016 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Put-selling, Stock Investing, Stock Option Strategies
After entering our covered call writing or put-selling positions, we immediately prepare for possible exit strategy opportunities. All exit strategies begin by buying back the option, call or put. These position management techniques are used to mitigate losses, turn...
Nov 26, 2016 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Stock Option Strategies
Covered call writers and put-sellers know that options should never be sold when there is an upcoming earnings report prior to contract expiration. This is one of the most important rules in the BCI methodology. The reason is the result of the inherent risk we are...
Nov 19, 2016 | Investment Basics, Option Trading Basics, Options Trade Execution, Stock Investing, Stock Option Strategies
Stock and ETF (exchange-traded fund) selection is one of the three required skills needed to achieve the highest level of success when selling options. Covered call writers and put-sellers have varying degrees of personal risk tolerance and trading styles. As a...
Nov 12, 2016 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Stock Option Strategies
Covered call writing and selling cash-secured puts obligates us to buy or sell shares at the strike price by the expiration date. Exercise will generally occur if the strike is in-the-money by 4 PM ET on expiration Friday (usually the 3rd Friday of the month)....
Nov 5, 2016 | Fundamental Analysis, Investment Basics, Option Trading Basics, paper trading, Stock Investing, Stock Option Strategies
QUESTIONS FOR COVERED CALL WRITERS AND PUT-SELLERS: Why do retail investors buy high and sell low? Why do we sell our winners and keep our losers? Why do many of us feel that the market is rigged in favor of Wall Street insiders? Boy am I starting off on the wrong...
Oct 29, 2016 | Investment Basics, Options Calculations, Options Trade Execution, Stock Investing, Stock Option Strategies
Whether we are writing covered calls, selling cash-secured puts or simply buying and selling stocks, the first important requirement is to develop or have access to a quality watch list of elite-performing securities. Once we have purchased a stock or exchange-traded...
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