My Covered Call is Expiring In-The-Money and I Want to Keep My Shares
click ↑ 4 Featured Covered call writers will frequently find themselves in a position where the short call is expiring in-the-money (ITM), while still wanting to use the same underlying shares for the next contract cycle. How should this be managed? 3-approaches...
Should I Close My ATM Covered Call with 2 1/2 Months Until Contract Expiration?
click ↑ 4 Featured When our covered call writing trades move deep in-the-money (ITM), the time-value cost-to-close approaches (but does not reach) $0.00. In these scenarios, it may make sense to close both legs of the trade (mid-contract unwind or MCU exit strategy)....
I Made a Lot of Money, So Why Am I Crying?
click ↑ 4 Featured Covered call writing trades have 2 components: we are long the stock and short the option. When evaluating the success or lack thereof for our trades, we must factor in both legs of the trade. In this article, we will analyze an example of how we...
Option Greeks Defined and Theoretical Calculations + Premium Membership Pricing Information
click ↑ 4 Featured The option Greeks are a series of calculations that measure the factors that impact our option prices and risk. The Black-Scholes Model can be used to determine the theoretical value for a call or put option based on these factors:...
How to Use the BCI Portfolio Setup Spreadsheet to Craft Our Option-Selling Portfolios
click ↑ 4 Featured When establishing our covered call writing and cash-secured put portfolios, it is critical to factor in stock and industry diversification and cash allocation. Our BCI premium stock & ETF reports along with our Portfolio Setup...
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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