Dec 7, 2024 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Put-selling, Stock Option Strategies
click ↑ 4 Featured What is a Collar Trade? The collar strategy consists of 3 legs: Buy stock (long position) Sell an out-of-the-money (OTM) call option (short call- ceiling) Buy an out-of-the-money protective put (long put- floor) Since a protective put debit is added...
Nov 30, 2024 | Covered Call Exit Strategies, Exchange-Traded Funds, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
click ↑ 4 Featured Our covered call writing trades offer 2 income streams when using out-of-the-money (OTM) call strikes. (Make that 3, if we incorporate dividends into the strategy). These consist of option premium + share appreciation from current market value up...
Nov 23, 2024 | Covered Call Exit Strategies, Exchange-Traded Funds, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
click ↑ 4 Featured Blue Collar Investors know that there are times we shouldn’t “settle” for maximum returns. In this article, a successful covered call trade with QQQM (an exchange-traded fund or ETF) will be analyzed, detailing how a maximum return...
Nov 16, 2024 | Fundamental Analysis, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
click ↑ 4 Featured When writing covered calls in bear and volatile markets, we may choose to take a defensive posture and use in-the-money call strikes which offer additional downside protection in the form of intrinsic value. We can take this approach to an even...
Nov 9, 2024 | Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Put-selling, Stock Option Strategies
click ↑ 4 Featured Selling cash-secured puts (CSP) has a goal of generating weekly or monthly cash flow with or without taking possession of the underlying security. This article will analyze a real-life weekly (6/3/2024 – 6/7/2024) trade with Pinterest, Inc....
Nov 2, 2024 | Covered Call Exit Strategies, Exit Strategies, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
click ↑ 4 Featured When our covered call trades are expiring in-the-money (ITM), we have an unrealized (shares are not yet sold) maximum return. This consists of option premium + any unrealized share appreciation from purchase price to the strike, if an...
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