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Covered call writing versus the overall market

The CBOE BuyWrite Index (BXM) vs. The BCI System

Several studies have been undertaken to determine the effectiveness of the covered call writing strategy. I believe that it is important to evaluate the parameters that are used as well […]

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Covered call writing and special cash dividends

Special 1- Time Cash Dividends and Our Covered Call Positions

Every so often we will see a company declare a “special dividend” which is separate from the typical recurring dividend cycle, if there is one. It is frequently a reflection […]

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Covered call writing using the Blue collar Investor methodology

Examining A Covered Call Trade

Mastering covered call writing requires us to learn from our mistakes and not repeating them. We can then utilize a series of guidelines and rules that will guide us to […]

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stock option expiration cycles

Stock Option Expiration Cycles: Beware Of Expiration Dates

In the BCI methodology for covered call writing we use predominantly 1-month options. The reasons are as follows: Generate the highest annualized returns Allows us to avoid earnings reports, a […]

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Using LEAPS to increase dividend yield

Using LEAPS Covered Calls to Increase Dividend Yield

Innovative covered call writers can develop ideas of implementing a strategy in unconventional ways. For example, we can invest in a money market or CD and perhaps not even beat the […]

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Using LEAPS options as a stock surrogate

LEAPS And Covered Call Writing

Covered call writing entails buying a stock and then selling an option.  But what if I buy a call option instead of the stock and then sell a call option […]

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Exit strategies for covered call writing

Covered Call Writing: Generating Additional Income When A Stock Price Gaps Up

Mastering option trading basics includes incorporating exit strategies into our portfolio trades. These opportunities present themselves both when a stock prices declines and accelerates. Recently, a premium member presented me with […]

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How Quarterly Dividends Impact Our Covered Call Option Premiums

When studying option trading basics we learn the equation for option premium value is: Premium = time value + intrinsic value If the strike price is at- or out-of-the-money the […]

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Covered Call Writing: The Case For 1-Month Options

I sell predominantly 1-month options when selling covered calls. This decision was NOT based on anything I read or was told, but rather on experience and common sense. Most stocks with […]

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Calculating covered call returns

Sample Covered Call Portfolio Using The Current Premium Watch List

Several of our Premium Members have requested we provide sample portfolios based on the CURRENT Premium Watch List as a guide to assist in mastering the strategy of covered call […]

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