Using Both ITM & OTM Covered Calls to Align with Current Market Conditions
click ↑ 4 Featured When establishing our covered call portfolios (cash-secured puts, too), our strike selection is influenced by current market conditions. In normal-to-bull markets, we favor out-of-the-money (OTM) strikes which allow for a 2-income stream potential...
Rolling-Up a Weekly Defensive Cash-Secured Put Trade
click ↑ 4 Featured When a cash-secured put is sold, we agree to buy the shares at the strike price by the expiration date. We, the option-sellers, determine those 2 parameters. In our BCI methodology, we favor out-of-the-money (OTM) put strikes. In bear and volatile...
What is Quantifying Risk: Part II- Using Implied Volatility (IV)
click ↑ 4 Featured In a recent article titled What is Quantifying Risk: Part I- Using Delta, one methodology of measuring the risk of our covered call writing and cash-secured put trades was analyzed. In this article, implied volatility (IV) will be investigated as...
Can We Generate Significant Returns with a Defensive 4-Day Cash-Secured Put Trade?
click ↑ 4 Featured In bear and volatile markets, our cash-secured put trades (covered calls too) should be structured in a defensive manner. Greater protection to the downside typically means lower returns. That’s the tradeoff. We may opt for weekly trades which...
Using the Zero-Dollar Collar to Protect Greatly Appreciated Shares
click ↑ 4 Featured We can use put options as a hedge against share price decline of our long stock positions. This may be particularly useful after exponential price acceleration, and we want to protect our unrealized gains. This would represent an insurance policy...
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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