Feb 27, 2021 | Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, paper trading, Stock Option Strategies
Covered call writing is associated with 2 legs: we are long the stock and short the call option. If we add a protective put, we have converted the covered call trade to a collar trade which has both a floor (put strike) and a ceiling (call strike). The traditional...
Nov 11, 2017 | Covered Call Exit Strategies, Exit Strategies, Fundamental Analysis, Investment Basics, Option Trading Basics, Options Calculations, paper trading, Stock Option Strategies
A critical BCI rule for covered call writing is never to sell an option if there is an upcoming earnings report prior to contract expiration. Earnings reports are risky events we want to avoid. From time-to-time a company will pre-announce earnings especially if there...
Sep 2, 2017 | Exchange-Traded Funds, Investment Basics, Option Trading Basics, paper trading, Stock Option Strategies
Using covered call writing and exchange-traded funds (ETFs) is a viable approach to generating monthly cash flow. I personally use this strategy in my mother’s portfolio. Can this investment style be expanded to include inverse ETFs to move this expanded path to...
Nov 5, 2016 | Fundamental Analysis, Investment Basics, Option Trading Basics, paper trading, Stock Investing, Stock Option Strategies
QUESTIONS FOR COVERED CALL WRITERS AND PUT-SELLERS: Why do retail investors buy high and sell low? Why do we sell our winners and keep our losers? Why do many of us feel that the market is rigged in favor of Wall Street insiders? Boy am I starting off on the wrong...
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