Oct 25, 2025 | Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Put-selling, Stock Option Strategies
click ↑ 4 Featured When we structure our covered call trades in a defensive manner, we have 2 main goals in mind. We seek greater protection to the downside than traditional put trades and we strive for significant, although lower returns. We accomplish these goals by...
Oct 11, 2025 | Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Put-selling, Stock Option Strategies
click ↑ 4 Featured Calculating our covered call writing and cash-secured put trades can range anywhere from really simple to way too complicated. In this article, an example of the latter will be analyzed. Thanks to our BCI Trade Management Calculator (TMC), these...
Sep 20, 2025 | Fundamental Analysis, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Put-selling, Stock Option Strategies
click ↑ 4 Featured When establishing our covered call portfolios (cash-secured puts, too), our strike selection is influenced by current market conditions. In normal-to-bull markets, we favor out-of-the-money (OTM) strikes which allow for a 2-income stream potential...
Sep 13, 2025 | Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Put-selling, Stock Option Strategies
click ↑ 4 Featured When a cash-secured put is sold, we agree to buy the shares at the strike price by the expiration date. We, the option-sellers, determine those 2 parameters. In our BCI methodology, we favor out-of-the-money (OTM) put strikes. In bear and volatile...
Sep 6, 2025 | Fundamental Analysis, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Put-selling, Stock Option Strategies
click ↑ 4 Featured In a recent article titled What is Quantifying Risk: Part I- Using Delta, one methodology of measuring the risk of our covered call writing and cash-secured put trades was analyzed. In this article, implied volatility (IV) will be investigated as...
Aug 21, 2025 | Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Put-selling, Stock Option Strategies
click ↑ 4 Featured In bear and volatile markets, our cash-secured put trades (covered calls too) should be structured in a defensive manner. Greater protection to the downside typically means lower returns. That’s the tradeoff. We may opt for weekly trades which...