Oct 11, 2014 | Investment Basics, Option Trading Basics, Options Trade Execution
Covered call writing and selling cash-secured puts involves investing our hard-earned money. Did you ever wonder who guarantees these trades? It’s not our broker or even our broker’s clearing firm. It’s the Options Clearing Corporation or the OCC....
Sep 27, 2014 | Investment Basics, Option Trading Basics, Stock Option Strategies
The timing of our option trade executions will impact the success of our covered call writing returns. The BCI methodology prides itself on having rules and guidelines for buying back options, re-selling options and selling long stock positions. One question that many...
Sep 13, 2014 | Investment Basics, Option Trading Basics, Stock Option Strategies
Writers of covered calls and cash-secured puts use stocks or exchange-traded funds as the underlying securities. It is the value of these securities that give value to our option premiums. For example, we will buy back an option when share price moves down causing the...
Aug 30, 2014 | Covered Call Exit Strategies, Investment Basics, Option Trading Basics, Stock Option Strategies
Covered call writing is a low-risk strategy that allows us to generate monthly cash flow by selling stock options. Since we are obligated to sell our shares to the option buyer (holder), one of the understood possibilities is that we will “lose” our shares...
Aug 23, 2014 | Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
With the rising popularity of stock option strategies and covered call writing in particular, we have seen the creation of more option products like weekly stock options. Weeklys expire each Friday of the month whereas the more traditional monthlys generally expire...
Aug 2, 2014 | Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
Covered call writing is the main focus of this site and the BCI methodology. Based on member demand and similarity of strategies we have been adding information on selling cash-secured puts, the topic of my upcoming 5th book. Recently I have received inquiries on...
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