Dec 16, 2023 | Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Put-selling, Stock Option Strategies
click ↑ 4 Featured When selling cash-secured puts, a common strategy goal is to avoid exercise and having shares put to us. This means selling out-of-the-money (OTM) strikes that have a low probability of exercise or expiring in-the-money (ITM) or with...
Dec 9, 2023 | Covered Call Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
click ↑ 4 Featured Populating our covered call writing and put-selling monthly portfolios during earnings season can be challenging as we seek to avoid companies about to report earnings. This is the most important rule in the BCI methodology. All other...
Dec 2, 2023 | Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Put-selling, Stock Option Strategies
click ↑ 4 Featured When cash-secured puts are sold, many investors prefer to avoid exercise and having the shares put to them. If the (originally) out-of-the-money (OTM) strike is in-the-money (ITM) as expiration approaches due to share price decline, buying...
Nov 25, 2023 | Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Put-selling, Stock Option Strategies
click ↑ 4 Featured When we sell cash-secured puts (CSPs), we are getting paid to undertake the contractual obligation to buy the holders shares at a price that we (the sellers) determine, called the strike price, by a date that we determine, called the expiration...
Nov 18, 2023 | Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Put-selling, Stock Option Strategies
click ↑ 4 Featured One of our available cash-secured put trade exit strategies is rolling-up to generate an additional income stream (or multiple income streams). The disadvantage of this position management approach is that we are bringing the strike closer to...
Nov 11, 2023 | Exchange-Traded Funds, Exit Strategies, Option Trading Basics, Options Calculations, Options Trade Execution, Put-selling, Stock Option Strategies
click ↑ 4 Featured Many option traders who sell cash-secured puts prefer not to take possession of the underlying shares. Typically, when a trade is structured, the strike is out-of-the-money (OTM- lower than current market value). Exercise will occur when the share...