Combining Covered Call Writing and Selling Cash-Secured Puts

Combining Covered Call Writing and Selling Cash-Secured Puts

Jan 13, 2024 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Put-selling, Stock Option Strategies

click ↑ 4 Featured When we integrate both covered call writing and selling cash-secured puts into one multi-tiered option selling strategy, we have our Put-Call-Put or PCP Strategy. Outside the BCI community, this is often referred to as the wheel strategy....
Selling Weekly Puts After Disappointing Earnings Reports: A Real-Life Example with Microsoft Corp. (Nasdaq: MSFT)

Selling Weekly Puts After Disappointing Earnings Reports: A Real-Life Example with Microsoft Corp. (Nasdaq: MSFT)

Dec 23, 2023 | Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Put-selling, Stock Option Strategies

click ↑ 4 Featured We can leverage our knowledge of cash-secured puts to take advantage of common scenarios. In this article, we will detail how to take advantage of a disappointing earnings report from a stellar blue-chip company. On 7/25/2023, MSFT reported earnings...
Using Weekly Options During Earnings Season: A Real-Life Example with RingCentral, Inc. (NYSE: RNG)

Using Weekly Options During Earnings Season: A Real-Life Example with RingCentral, Inc. (NYSE: RNG)

Dec 9, 2023 | Covered Call Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies

click ↑ 4 Featured Populating our covered call writing and put-selling monthly portfolios during earnings season can be challenging as we seek to avoid companies about to report earnings. This is the most important rule in the BCI methodology. All other...
Buying Back OTM Cash-Secured Puts on Expiration Friday to Avoid Potential Exercise + $25 Discount Coupon

Buying Back OTM Cash-Secured Puts on Expiration Friday to Avoid Potential Exercise + $25 Discount Coupon

Dec 2, 2023 | Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Put-selling, Stock Option Strategies

click ↑ 4 Featured When cash-secured puts are sold, many investors prefer to avoid exercise and having the shares put to them. If the (originally) out-of-the-money (OTM) strike is in-the-money (ITM) as expiration approaches due to share price decline, buying...