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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 symbol for these minis begin with the security ticker followed by the number 7: AAPL7 AMZN7 GOOG7 GLD7 SPY7 The 5 securities above are the […]

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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 overall market assessment. By developing a watchlist of eligible candidates with elite fundamentals and strong price chart technicals along with passing our common sense screens […]

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Covered call writing exit strategies

Real Life Covered Call Trade With PRLB

Part of our covered call writing education involves looking back on both successful and unsuccessful trades and learning from them. A few months ago I shared with a premium member a trade I had executed the previous month and saved it (I have a collection of dozens of email responses for future blog articles or […]

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Rolling options strategies

Rolling Out And Up To Capture Share Appreciation: A Good Idea?

Covered call writing has some drawbacks as do all investment strategies. Profit limitation by the strike price is one such disadvantage. How do we manage a situation where the price of the stock moves well above the strike sold? Some covered call writers will roll out and up (to a higher strike price and a […]

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Special 1-time cash dividends

When Strike Prices Disappear: Contract Adjustments

Stock options are contracts with terms that can change prior to expiration. Mergers, acquisitions, special dividends and stock splits are some of the events that may necessitate the change in terms. Since early September, New Orient Edu&Tech (EDU) has been on the Blue Collar Premium Stock List. In the middle of September I received several […]

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rolling out and covered call writing

Rolling Weekly Options & Covered Call Writing

The stock option strategies in our BCI methodology are based on years and decades of real-life trading experience. The information detailed in my books and DVDs is geared to giving us the best chance to achieve the highest possible covered call writing returns. This article is different. It is meant to start a conversation and […]

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Coveredc call writing and contract adjustments

Covered Call Writing And Contract Adjustments + Our Premium Report Is Getting Even Better

Options Trading Basics includes the fact that one options contract incorporates 100 shares of the underlying security. The right or the obligation is for the purchase or sale of 100 shares of stock or exchange-traded funds. This is the rule but there are exceptions to this rule. From time to time a certain event will […]

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Portfolio overwriting and ex-dividend dates

Using Covered Call Writing To Increase The Returns From A Buy And Hold Portfolio: Part II

Last week I wrote Part I of an article on portfolio overwriting, a covered call-like strategy for buy and hold portfolios. In today’s article I will walk you through the process of how this strategy can be accomplished. Keep in mind that there are many ways to approach any given strategy, this is one of […]

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portfolio overwriting and ex-dividend dates

Using Covered Call Writing To Increase The Returns From A Buy And Hold Portfolio: Part I

Covered call writing is a conservative strategy that encompasses a great deal of inherent application flexibility. In my first 3 books and DVD Programs I have discussed the use of LEAPS as a stock surrogate, protective puts, the use of cash-secured puts to enter a covered call trade at a discount and portfolio overwriting. In […]

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Expiration dates for covered call writing

Covered Call Writing: 1-Month vs. 2-Month Expiration Dates

Two of the cornerstones of the BCI methodology for covered call writing involves selling options with 1-month expirations and avoiding earnings reports. Several of our astute members have inquired about selling 2-month options instead. The rationale is that all stocks and ETFs have options for the current and next month. The months farther out will […]

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