This podcast will detail how to craft 84% probability of success trades using Delta and implied volatility (IV). A conversion formula and spreadsheet will be discussed how to generate an IV for a specific option contract. Real-life examples with option-chain data are...
Corporate events such as stock splits, mergers& acquisitions and special 1-time cash dividends may change the parameters of our covered call writing and put-selling contracts. This podcast will focus in on a real-life example with OMF and a special 1-time cash...
When we have a successful covered call trade with the option about to expire in-the-money (with intrinsic-value), we can retain the underlying shares by rolling the option to a later expiration date. We can also roll that option up to a higher strike price. This...
When a stock price accelerates exponentially after entering a covered call trade, the short call strike moves deep in-the-money. Does it make sense to close both legs of the covered call trade or continue to manage through expiration? This podcast will run the...
One of the BCI golden rules for covered call writing or selling cash-secured puts is: never sell an option with an upcoming earnings report due prior to contract expiration. Our choices are to avoid the stock completely or own it through the report and write the...
When selling cash-secured puts, exit strategies are an integral part of our goal to achieve maximum success. The 3% guideline assists us in determining when to close the short call if share price declines significantly. A real-life example with NVDA is used and...
Podcast