May 2, 2020 | Exchange-Traded Funds, Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies, Technical Analysis
Exchange-traded funds are baskets of stocks some going up and others going down in price. Generally, this makes these securities less volatile than individual stocks. Lower implied volatility translates into lower option premiums. Of course, there are exceptions but...
Apr 18, 2020 | Investment Basics, Just Alan, Option Trading Basics, Options Calculations, Stock Option Strategies
Put-call parity is a principle that defines the relationship between the price of European put options and European call options of the same stock, strike price, and expiration date. The formula can identify arbitrage opportunities where the simultaneous buying and...
Apr 4, 2020 | Investment Basics, Option Trading Basics, Options Calculations, Stock Investing, Stock Option Strategies, Technical Analysis
Stock and option selection are 2 of the 3-required skills essential to successful covered call writing (position management is the 3rd). There is no one factor that will dictate our choices but rather a mosaic of bits of information which will lead us to the best...
Mar 28, 2020 | Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Put-selling, Stock Option Strategies
Covered call exit strategies play a major role in mitigating losses in our BCI methodology. In most cases, we can keep losses to a minimum, turn losses into gains and enhance profits as well. Some covered call writers want the security of protecting against a...
Mar 7, 2020 | Investment Basics, Option Trading Basics, Options Calculations, Put-selling, Stock Investing, Stock Option Strategies
Covered call writing or selling cash-secured puts… which is the best strategy? Well, they both offer great opportunities to generate cash-flow in a low-risk manner. I favor the former in normal to bull market environments and the latter in bear and volatile...
Feb 29, 2020 | Fundamental Analysis, Investment Basics, Option Trading Basics, Options Calculations, Stock Investing, Stock Option Strategies, Technical Analysis
Covered call writing can be beneficial to us in a variety of circumstances. This article will highlight how this strategy can be implemented to create a dividend-like cash flow for stocks that currently offer no dividend income. This can be particularly useful for...
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