Jul 22, 2023 | Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
Covered call writing is a low-risk cash-flow strategy that can also create the potential of a 2nd income stream when using out-of-the-money (OTM) strikes which can also produce potential income from share appreciation. When incorporating underlying securities that...
Jul 7, 2023 | Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Put-selling, Stock Option Strategies
Selling cash-secured puts is a low-risk option-selling strategy where the seller undertakes the contractual obligations to buy shares at the strike price, by the expiration date. In return for undertaking this obligation, an option premium is collected. There are many...
Jul 1, 2023 | Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
Portfolio overwriting is a covered call writing-like strategy where deep out-of-the-money (OTM) calls are sold against our long-term buy-and-hold securities. Typically, these stocks and exchange-traded funds (ETFs) are of a low cost-basis and subject to capital gains...
Jun 17, 2023 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
After entering our covered call trades, we immediately go into position management mode. Frequently, we can take advantage of a covered call exit strategy opportunity, sometimes more than one. This article will review a trade shared with me by Jim, where his covered...
Jun 10, 2023 | Ask Alan, Covered Call Exit Strategies, Investment Basics, Just Alan, Option Trading Basics, Options Trade Execution, Stock Option Strategies
On 12/9/2022, Patrik sent me an email he titled “Covered Call Panic” He shared with me information on his trades and was distraught at the current outcome. This article will analyze whether Patrik actually needed Kleenex to cry over these trades or,...
Jun 3, 2023 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
The PMCC is a covered call writing-like strategy where LEAPS options act as surrogates for the underlying stock or ETF. It is technically called a long call diagonal debit spread and has the advantage of lower cost to enter the trade when compared to traditional...
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