Feb 28, 2015 | Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
Understanding the Greeks, or factors that impact the value of our covered call premiums, is essential to mastering options trading basics and becoming an elite covered call writer. One of the Greeks (although not truly a Greek letter) is Vega, the amount an option...
Feb 14, 2015 | Investment Basics, Option Trading Basics, Stock Investing, Stock Option Strategies
Covered call writing and put-selling results are enhanced by selecting the best underlying securities and most appropriate options. Stock selection involves screening via fundamental and technical analysis as well as common sense screens (like avoiding earnings...
Feb 7, 2015 | Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
Covered call writing and put-selling generates monthly cash flow because we are selling option contracts and getting paid for undertaking the contract obligations. When a contract is exercised, we then enter another phase where we either buy or sell shares. The...
Jan 31, 2015 | Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
Understanding the concept of implied volatility is essential for successful covered call writing and selling puts. First, implied volatility gives us a window into the “market’s” perception of future price movement. It will also allow us to calculate...
Jan 17, 2015 | Exchange-Traded Funds, Investment Basics, Option Trading Basics, Stock Option Strategies
For the strategies of covered call writing and selling cash-secured puts, we are selling the right, but not the obligation, to buy or sell 100 shares of the underlying security. That security can be a stock or and exchange-traded fund (ETF). In this article, I will...
Jan 10, 2015 | Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
Can we use covered call writing and selling cash-secured puts to generate profits when share price declines by 10% in two months in a bear or volatile market environment? I am writing this article on January 5th, 2015, the worst day the market has experienced in over...
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