Using Implied Volatility and the BCI Expected Price Movement Calculator to Avoid Exercise

Using Implied Volatility and the BCI Expected Price Movement Calculator to Avoid Exercise

Feb 3, 2024 | Fundamental Analysis, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies

click ↑ 4 Featured When we write covered call options and sell cash-secured puts, our goal is to generate cash-flow in a low-risk manner. Frequently, a second important goal is to avoid exercise of the options, which means avoiding the strikes from expiring...
Post-Earnings Opportunities: A Real-Life Example with NVIDIA Corp. (Nasdaq: NVDA)

Post-Earnings Opportunities: A Real-Life Example with NVIDIA Corp. (Nasdaq: NVDA)

Jan 20, 2024 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Put-selling, Stock Option Strategies

click ↑ 4 Featured Always avoid having an option in place if there is an upcoming earnings report prior to contract expiration. This applies to covered call writing and selling cash-secured puts as it will avoid the risk inherent in the reports. However, once the...
Combining Covered Call Writing and Selling Cash-Secured Puts

Combining Covered Call Writing and Selling Cash-Secured Puts

Jan 13, 2024 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Put-selling, Stock Option Strategies

click ↑ 4 Featured When we integrate both covered call writing and selling cash-secured puts into one multi-tiered option selling strategy, we have our Put-Call-Put or PCP Strategy. Outside the BCI community, this is often referred to as the wheel strategy....