Apr 5, 2025 | Fundamental Analysis, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Put-selling, Stock Option Strategies
click ↑ 4 Featured Cash-secured put and covered call writing trades can be winning or losing trades. When executed and managed properly, we will have many more winners than losers. Some trades will offer the opportunity to initiate exit strategy trade adjustments. In...
Mar 29, 2025 | Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
click ↑ 4 Featured When entering our covered call trades, we should always avoid the risk of earnings report dates. If we choose to hold the stock through that ER date, that’s okay, but don’t cap the upside with a covered call. If one of our strategy objectives is to...
Mar 22, 2025 | 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 Rolling down is a frequently used covered call writing exit strategy to mitigate when share price declines. The original sold option is closed (bought back), while simultaneously opening another at a lower strike in the same contract cycle. When...
Mar 15, 2025 | Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
click ↑ 4 Featured What is the Poor Man’s Covered Call (PMCC)? This is a covered call writing-like strategy where LEAPS options are purchased instead of the actual stocks or ETFs and short calls are written against these long positions. LEAPS options expire...
Mar 8, 2025 | Exchange-Traded Funds, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
click ↑ 4 Featured The CEO Strategy is a streamlined approach to covered call writing. It is an acronym for Combining Exchange-traded funds with stock Options. The methodology uses only the Select Sector SPDRs as underlying securities. These are exchange-traded funds...
Mar 1, 2025 | Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Put-selling
click ↑ 4 Featured When selling our cash-secured puts, understanding the correlation between stock price and our put premiums is critical to maximizing the success of our trades. For covered call writing, the relationship is direct … if share price increases, so...