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Time value erosion of option premiums

Buy A Stock And Wait Before Selling The Option: Is This A Good Strategy?

The goals of covered call writing include generating monthly cash flow and preserving capital. We use every fundamental, technical and common sense principle available to maximize our profits and protect […]

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market assessment and covered call writing

The Role Of VIX and Market Volatility In Our Covered Call Writing Decisions

Options trading basics teaches us that the VIX or CBOE Volatility Index demonstrates the market’s expectation of 30-day volatility. It measures market risk and is also known as the investor […]

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Protective puts and covered call writing

Calculating Protective Puts: The Collar Strategy

Covered call exit strategies plays a major role in mitigating losses in our BCI methodology. In most cases, we can keep losses to a minimum, turn losses into gains and […]

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Exit Strategy Calculations vs. Final Calculations

Mastering options calculations is an essential skill needed to attain the very highest covered call writing returns. Although the Ellman Calculator will do most of the heavy lifting for us, […]

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covered call writing calulations

Option Premiums: How Intrinsic Value Protects Time Value

Meaningful option calculations are essential in determining if the premiums meet our goals. To this end, we must understand the mathematics of these calculations to become elite covered call writers. […]

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covered call writing and early exercise

Early Exercise: I Don’t Want To Sell My AAPL Shares

Covered call writing obligates us to sell our shares to the option buyer at any time up to 4PM ET on expiration Friday should the buyer choose to exercise those options. […]

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covered call writing exit strategies

Managing Covered Call Trades While Working A Full-Time Job

Covered call writing is a popular and potentially highly rewarding strategy geared to retail investors. But most blue collar investors work 9-5 jobs and managing investment positions can be challenging […]

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Covered call writing and strike price selection

Achieving The Highest Covered Call Writing Returns Using The Blackjack Analogy

Covered call writers and all investors using stock options strategies have one thing in common: we all want to achieve the highest possible returns within the framework of our own […]

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Covered call writing with mini options

Mini Options: The Impact Of Commissions And Liquidity On Final Returns

Our stock options strategies have a new product to consider: mini options. These options have a deliverable 10 shares of underlying security instead of the traditional 100 shares. The options […]

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Calculating covered call writing returns

Selecting A Specific Strike Price For Our Covered Call Positions

We must master strike price selection to maximize our covered call writing returns. In our BCI methodology, strike price selection is ultimately determined after our careful stock screening analysis and […]

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