Feb 22, 2025 | Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
click ↑ 4 Featured There are 2 major ways to protect the investment inherent in our covered call trades. On way is buy protective puts and convert the covered call trade to a collar trade. We must pay for this type of trade insurance. The other is to sell in-the-money...
Feb 15, 2025 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
click ↑ 4 Featured Establishing our covered call trades require a sequential process including stock selection, option selection and position management. This article will analyze the procedures using a real-life example with Tenet Healthcare Corp. (NYSE: THC). Stock...
Feb 1, 2025 | Fundamental Analysis, Investment Basics, Option Trading Basics, Options Calculations, Stock Investing, Stock Option Strategies
click ↑ 4 Featured Implied volatility (IV) can be used to establish approximate upper and lower ends of trading ranges for our covered call and put-selling trades. The BCI Expected Price Movement Calculator was designed for purpose. Delta can also be used to establish...
Jan 25, 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 Market volatility can cause our covered call trades to whipsaw up and down, much like a roller-coaster. In this article, a real-life trade with The Industrial Select Sector SPDR Fund (NYSE: XLI) will be analyzed. In this series of trades, shared...
Jan 18, 2025 | Covered Call Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
click ↑ 4 Featured High implied volatility securities can be used in covered call trades in a defensive manner using the appropriate call strikes. In this article, Neurocrine Biosciences, Inc. (Nasdaq: NBIX) will be used to analyze the conversion process. NBIX data on...
Jan 11, 2025 | Exchange-Traded Funds, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Put-selling, Stock Option Strategies
click ↑ 4 Featured Exit strategies for covered call writing and selling cash-secured puts are critical in achieving the highest level of our trading returns. In this article, a real-life example with SPDR S&P Homebuilders ETF (NYSE: XHB) will analyze a...