Aug 29, 2015 | Investment Basics, Option Trading Basics, Stock Option Strategies
Option returns play a major role in our covered call writing and put-selling strategies. Mega-returns can be quite enticing but also very dangerous. Recently, with market volatility rising exponentially in response to global-economic concerns, a few of our members...
Aug 22, 2015 | Investment Basics, Option Trading Basics, Stock Option Strategies
“Selling covered call options and cash-secured puts is a smarter strategy than buying options because 90% of options expire worthless”. We’ve all heard this argument but never from me because it is simply not accurate. The reason so many...
Aug 8, 2015 | Investment Basics, Option Trading Basics, Options Calculations, Put-selling, Stock Option Strategies
The index short put strategy is a form of selling cash-secured puts. It is a bullish strategy with the goal of generating premiums selling put options that expire worthless. Traditionally, at-the-money strikes are sold. As opposed to using stocks and exchange-traded...
Aug 1, 2015 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
Rolling options is an important exit strategy choice when selling covered call and put options. Options can be rolled up and down in the same contract month or a future contract month. For the most part, we roll down in the same contract month and roll out or...
Jul 18, 2015 | Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
Dividends impact option premiums. When a dividend is distributed the cash holdings of a corporation is decreased and therefore the company and its stock are worth less. The eligibility to receive the dividend depends on several factors including the size of the...
Jul 11, 2015 | Investment Basics, Option Trading Basics, Options Calculations, Put-selling, Stock Option Strategies
Covered call writing and put-selling generate monthly cash flow with the inherent risk of share depreciation. One of the major advantages of these conservative strategies is that they can be tailored to all market environments. In today’s article I will address...
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