May 24, 2025 | Fundamental Analysis, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
click ↑ 4 Featured When we sell multiple covered call or cash-secured put contracts, we can use numerous strikes to enhance the diversification process. In this article, I will use a real-life example taken from one of my option portfolios, where I used 2 different...
May 17, 2025 | Fundamental Analysis, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
click ↑ 4 Featured A covered call writing strategy commonly used by hedge funds involves using ITM covered call strikes which expire immediately after an ex-dividend date. This may be appropriate only if share retention is not an integral requirement of the strategy....
May 10, 2025 | Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Put-selling, Stock Option Strategies
click ↑ 4 Featured Covered call writing trades can be crafted to be aggressive or defensive. Cautionary approaches include writing in-the-money (ITM) call strikes and adding protective puts to the covered call trades (converting the covered call trade to a collar...
May 3, 2025 | Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
click ↑ 4 Featured The Collar Strategy is a covered call writing-like strategy where a protective put is added to the trade, thereby establishing a floor and a ceiling with a maximum gain and a maximum loss. The 3 legs of a collar are an out-of-the-money (OTM) call,...
Apr 26, 2025 | Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Put-selling, Stock Option Strategies
click ↑ 4 Featured Much like our covered call writing trades, our cash-secured put trades can also be crafted to be aggressive or defensive. Factors to consider include overall market assessment, chart technical indicators, personal risk tolerance and initial...
Apr 19, 2025 | Fundamental Analysis, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Put-selling, Stock Option Strategies
click ↑ 4 Featured Prior to executing our cash-secured put trades, we must establish our initial time-value return goal range. This will lead us to the most appropriate strike. This article will focus on a real-life trade with Marvel Technology, Inc. (Nasdaq: MRVL),...
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