May 28, 2016 | Investment Basics, Option Trading Basics, Options Calculations
Option Greeks are mathematical means of measuring the risk of stock options. One of the least discussed of these factors is Gamma. In this article, we will explore the significance of this Greek and relate it to covered call writing. Gamma defined and...
May 21, 2016 | Fundamental Analysis, Investment Basics, Option Trading Basics, Options Calculations, Stock Investing, Stock Option Strategies
Locating stocks for covered call writing and put-selling is the first step as we prepare to execute these income-generating strategies. In the BCI methodology we use a three-pronged approach to screening for these underlying securities: Fundamental analysis Technical...
May 14, 2016 | Investment Basics, Options Calculations, Stock Option Strategies
Covered call writing can be used in a variety of ways. Most covered call writers use this strategy to generate monthly cash flow. It can also be adapted to enhance the returns of a long-term buy-and-hold portfolio where some of our securities may have been purchased...
May 7, 2016 | Investment Basics, Option Trading Basics, Stock Option Strategies
Covered call writing is applicable only in neutral to slightly bullish market environments”. We’ve heard this proclamation time and time again and so it has become accepted as fact to a majority of option-sellers. In this article, we will examine the...
Apr 30, 2016 | Investment Basics, Option Trading Basics, Options Calculations, Put-selling, Stock Option Strategies
Strike price selection can be tailored to our covered call writing and put-selling trades based on overall market assessment. In bear and volatile market conditions we favor in-the-money calls and deeper out-of-the-money puts (lower than current market value). In this...
Apr 23, 2016 | Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
Delta, one of the major Greeks, correlates the relationship between stock price and option value. Option traders use the Greeks to evaluate the risk inherent in our positions and Delta is a critical tool used to measure that liability. As we study the option...
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