The Mystery of Our Brokerage Accounts: Where Did My Option Premium Money Go?
click ↑ 4 Featured We sell a covered call or cash-secured put and the cash is immediately placed into our broker cash account. Next, we check our account value, and it did not go up! In some cases, it went down! Where did the option premium money go? This article will...
Shorter Dated Options Deliver Higher Annualized Returns: The Square Root Rule
click ↑ 4 Featured When selling covered calls or cash-secured puts, using contract expirations several months out (or longer) have the appeal of large option premiums. However, when we annualize these returns, they pale in comparison to the returns generated by...
Portfolio Overwriting NVDA Using Implied Volatility
click ↑ 4 Featured When NVIDIA Corp. (Nasdaq: NVDA) split 10-for-1 in June 2024, more retail investors had the opportunity to leverage this stock to sell options. Many already owned NVDA, but now owned 10x the number of shares at 1/10 the price. Writing covered calls...
Calculating Covered Call Trades that are Converted to Collar Trades
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...
Doubling Our Maximum Covered Call Returns Using the Mid-Contract Unwind (MCU) Exit Strategy
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...
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Podcast
- 126. Analyzing the Status of a Rolling-Down Trade
- 124. Dividends and After-Hours News Causing Exercise of OTM Call Strikes
- 123. Implied Volatility, IV Rank and IV Percentile Defined and Practical Applications
- BCI PODCAST 122: Should I Roll-Out My Deep In-The-Money Call Option Mid-Contract?
- BCI PODCAST 121: What is a SPAC (Special Purpose Acquisition Company)?
- 120. Using the Nasdaq-100 Volatility Index (VOLQ) in Covered Call Writing Decisions
- 119. Establishing Our Cost-Basis for Long-Term Holdings
- 118. Adjusting Our Portfolio Mix to Achieve Diversification and Cash Allocation
- 117. When a Covered Call Strike Moves $1000.00 In-The-Money
- 116. How to Execute a Covered Call Trade with a Buy/Write Combination Form