What is the “Square Root of Time Rule” & How Does it Impact Option Expiration Date Selection?
click ↑ 4 Featured You’re selling 4, 1-month covered call contracts for the $100.00 strike and generating $1000.00 in premium. Pretty good, right? But wait a minute … if I sell 4, 6-month $100.00 strikes, I can make $2,500.00. Seems like a no-brainer to...
Factors Impacting Strike Selection with High Implied Volatility (IV) Stocks
click ↑ 4 Featured When using high implied volatility (IV) stocks and ETFs in our covered call and cash-secured put portfolios, there are tremendous opportunities to score significant returns, but with significant risks to the downside. We must be particularly focused...
Can We Use 2 Standard Deviation Implied Volatility When Portfolio Overwriting?
click ↑ 4 Featured Portfolio overwriting is a form of covered call writing where share retention, capital preservation and generation of modest cash flow are specified goals. We are looking to generate an additional option premium income stream while retaining the...
How to Incorporate High Implied Volatility Stocks into Conservative Cash-Secured Put Portfolios
click ↑ 4 Featured In a previous publication, a high implied volatility (IV) ETF, URA was analyzed as how to use it in a defensive manner while still generating significant covered call writing returns. In this article, a real-life cash-secured put trade with Solaris...
How to Incorporate High Implied Volatility Stocks into Conservative Covered Call Portfolios + Alan Interviewed by The Options Industry Council
click ↑ 4 Featured Elite-performing securities with high implied volatility represent good news/bad news scenarios for our covered call portfolios. The good news is the high premium yields received. The bad news is the risk to the downside. This article will analyze...
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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