When selling covered call or put options, strike price selection is one of the three required skills. Here are the main factors we evaluate when determining which strike price to […]
Using Technical Indicators to Assist with Strike Selection
Posted on June 3, 2017 by Alan Ellman in Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies, Technical Analysis
Setting Up a Covered Call Trade by First Selling an Out-Of-The-Money Put
Posted on May 27, 2017 by Alan Ellman in Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Put-selling, Stock Option Strategies
A covered call trade can be initiated by first purchasing the underlying stock or exchange-traded fund (ETF). It can also be launched by first selling an out-of-the-money (OTM) cash-secured put and allowing […]
Is Covered Call Writing a Zero Sum Game? Let’s Do the Math
Posted on May 13, 2017 by Alan Ellman in Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
Many assume that covered call writing is a zero sum game because we have traders executing equal but opposite trades using the same underlying security. As a covered call writer, we […]
Should We Favor Put-Selling Over Covered Call Writing?
Posted on May 6, 2017 by Alan Ellman in Investment Basics, Option Trading Basics, Options Calculations, Put-selling, Stock Option Strategies
Many consider covered call writing and selling cash-secured puts the same strategy with the same risk-reward profiles. To me, they are similar with slight differences that must be understood to […]
Calculations When an Unexpected Earnings Report is about to be Released
Posted on April 29, 2017 by Alan Ellman in Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
Never write a covered call or sell a cash-secured put if there is an earnings announcement due prior to contract expiration. This is such an important rule in the BCI […]
Mini Options for Equities and Exchange-Traded Funds: A Failing Product
Posted on April 1, 2017 by Alan Ellman in Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
Standard covered call writing contracts consists of 100 shares deliverable. When we sell one standard covered call contract we are agreeing to sell (deliver) 100 shares. Since many retail investors […]
Put-Selling in Margin Accounts
Posted on March 11, 2017 by Alan Ellman in Investment Basics, Option Trading Basics, Options Calculations, Put-selling, Stock Option Strategies
Whether I am selling call or put options I prefer to use a cash account. That’s where we invest and utilize only our own cash to purchase stock and secure […]
Establishing a Blue Chip Covered Call Portfolio
Posted on March 4, 2017 by Alan Ellman in Investment Basics, Option Trading Basics, Options Calculations
Covered call writing and selling cash-secured puts are strategies that can be crafted to meet the personal risk tolerance of all investors. I use stocks selected from our premium watch […]
Short-Term Trades with High Returns: Evaluating a Real-Life Example
Posted on February 25, 2017 by Alan Ellman in Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
Covered call writing is a conservative strategy for cautious investors. We want the higher than risk-free returns with the least amount of risk. One question that does come up in […]
Selling In-The-Money Puts to Generate Higher Premiums: Evaluating a Real-Life Trade
Posted on February 18, 2017 by Alan Ellman in Investment Basics, Option Trading Basics, Options Calculations, Put-selling, Stock Option Strategies
Selling Cash-Secured Puts can be used to accomplish several goals; Generate cash flow Buy a stock at a discount Used as part of a multi-tiered option selling strategy along with […]
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Podcast
- 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
- 115. Establishing Our Cost Basis When Rolling-Out-And-Up On 2 Different Days
- 114. The Poor Man's Covered Call Selecting the Best LEAPS Strikes
- 113. How to Select the Best Strikes for Collar Trades
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Recent Posts
- BCI PODCAST 122: Should I Roll-Out My Deep In-The-Money Call Option Mid-Contract?
- Annualized Returns for Weekly and Monthly Options
- Calculating Covered Call Writing & Cash-Secured Put Trades for the Same Stock and Similar Moneyness
- Ask Alan # 216: Establishing the Cost Basis of an Adjusted Covered Call Trade
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Beginners Corner Enhanced & Updated
- Lesson 1: Beginner's Corner for Covered Call Writing: 2nd Edition
- Lesson 2: Beginner's Corner for Covered Call Writing- 2nd Edition: Option Basics
- Lesson 3: Beginner's Corner for Covered Call Writing- Stock Selection
- Lesson 4: Beginner's Corner for Covered Call Writing-2nd Edition
- Lesson 5: Beginner's Corner for Covered Call Writing
- Lesson 6: Beginner's Corner for Covered Call Writing
- Lesson 7: Beginner's Corner for Covered Call Writing: 2nd Edition
- Lesson 8: Beginner's Corner for Covered Call Writing
- Video 9: Premium Membership
Beginners Corner Selling-Puts
- Lesson 1: What Is Puts Selling?
- Lesson 2: Puts-Selling Option Basics
- Lesson 3:puts-selling-technical analysis
- Lesson 4:puts-selling-Common Sense Considerations
- Lesson 5:puts-selling-Calculating Returns
- Lesson 6:puts-selling-Executing Put-Selling
- Lesson 7:puts-selling- Exit Strategies
- Lesson 8:puts-selling-Mastering Put-Selling
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