Aug 24, 2013 | Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution
Executing a covered call trade and understanding the accounting procedures on our online discount broker statements can be confusing to the new option trader. I have recently received a few emails regarding this topic so I thought it would be useful to show an actual...
Aug 17, 2013 | Investment Basics, Option Trading Basics, Stock Investing, Stock Option Strategies
I’ve been writing covered calls since the 1990s. None of my friends or relatives ever heard of this strategy and no one I knew was using it. Back then, there were very few books on the subject and average retail investors had little or no interest in learning...
Jul 27, 2013 | Investment Basics, Option Trading Basics, Stock Investing, Stock Option Strategies
Covered call writers are average retail investors looking to generate monthly cash flow in small but consistent increments and then compounding those profits. In time, it could lead to financial independence. Other investors look to make a lot of money in a short time...
Jul 20, 2013 | Covered Call Exit Strategies, Option Trading Basics, Stock Option Strategies, Technical Analysis
Technical analysis or fundamental analysis…which should we use in the stock selection process for covered call writing? Many sophisticated investors can make an impressive argument for one or the other. I say why not use both? As most of you know, in the BCI...
Jul 13, 2013 | Investment Basics, Option Trading Basics, Options Trade Execution, Stock Investing, Stock Option Strategies
Covered call writing along with all other stock and option strategies require us to open a brokerage account. This process will take more than a simple phone call. All brokerages will require us to fill out an options approval form as designed by its compliance...
Jul 6, 2013 | Investment Basics, Option Trading Basics, Options Calculations
Maximizing covered call writing profits requires us to master strike price selection. Very few covered call writers outside the BCI community use in-the-money strikes and, as a result, do not achieve the results that we do. Recently, a few BCI members sent me emails...
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