Jun 22, 2024 | Covered Call Exit Strategies, Exchange-Traded Funds, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
click ↑ 4 Featured Covered call writing trades have 2 components: we are long the stock and short the option. When evaluating the success or lack thereof for our trades, we must factor in both legs of the trade. In this article, we will analyze an example of how we...
Jun 15, 2024 | Fundamental Analysis, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
click ↑ 4 Featured The option Greeks are a series of calculations that measure the factors that impact our option prices and risk. The Black-Scholes Model can be used to determine the theoretical value for a call or put option based on these factors:...
Jun 8, 2024 | Fundamental Analysis, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies, Stock Trading & Taxes
click ↑ 4 Featured When establishing our covered call writing and cash-secured put portfolios, it is critical to factor in stock and industry diversification and cash allocation. Our BCI premium stock & ETF reports along with our Portfolio Setup...
Jun 1, 2024 | Covered Call Exit Strategies, Exit Strategies, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
click ↑ 4 Featured When we roll-out our covered call writing trades, the initial strike is in-the-money (ITM) as expiration is approaching and we made a decision to retain the underlying security for the next contract cycle. We have maximized our initial...
May 24, 2024 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
click ↑ 4 Featured We enter a covered call writing trade, and share price accelerates exponentially. What exit strategy opportunities are available, if any? This article will discuss the mid-contract unwind (MCU) and rolling-up exit strategies, with an...
May 18, 2024 | Fundamental Analysis, Investment Basics, Option Trading Basics, Options Calculations, Put-selling, Stock Trading & Taxes
click ↑ 4 Featured Intuitively, at-the-money (ATM) calls and puts should be priced the same. In most instances, this is not the case. ATM calls are generally priced higher than ATM puts. Why? The reason would center around the cost of carry. The buyer of a...
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