Jul 25, 2015 | Covered Call Exit Strategies, Exit Strategies, Options Calculations, Stock Option Strategies
Mastering exit strategies is one of the three required skills for covered call writing as well as selling cash-secured puts. In this article I will review and evaluate a real-life trade executed by one of our members. The trade involves rolling up in the same contract...
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...
Jun 20, 2015 | Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution
Covered call writers generate cash flow by selling call options associated with a stock or exchange-traded fund. Our goals are to generate the highest possible returns with low-risk trades and that fit our requirement for capital preservation. The three required...
Jun 6, 2015 | Investment Basics, Option Trading Basics, Options Calculations, Put-selling, Stock Option Strategies
When studying covered call and put-selling option prices we learn that the market will correct any potential arbitrage opportunities. Arbitrage is the simultaneous purchase and sale of an option in order to profit from a difference in the price. It exploits price...
May 30, 2015 | Investment Basics, Option Trading Basics, Options Calculations, Stock Investing, Stock Option Strategies
Mastering both conservative option selling strategies, covered call writing and put-selling will allow us to maneuver our way through most market situations. This past Wednesday, May 27, 2015 several of the stocks on our BCI Premium Watch List gapped up. On last...
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