Mar 1, 2025 | Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Put-selling
click ↑ 4 Featured When selling our cash-secured puts, understanding the correlation between stock price and our put premiums is critical to maximizing the success of our trades. For covered call writing, the relationship is direct … if share price increases, so...
Jan 11, 2025 | Exchange-Traded Funds, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Put-selling, Stock Option Strategies
click ↑ 4 Featured Exit strategies for covered call writing and selling cash-secured puts are critical in achieving the highest level of our trading returns. In this article, a real-life example with SPDR S&P Homebuilders ETF (NYSE: XHB) will analyze a...
Dec 7, 2024 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Put-selling, Stock Option Strategies
click ↑ 4 Featured What is a Collar Trade? The collar strategy consists of 3 legs: Buy stock (long position) Sell an out-of-the-money (OTM) call option (short call- ceiling) Buy an out-of-the-money protective put (long put- floor) Since a protective put debit is added...
Nov 9, 2024 | Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Put-selling, Stock Option Strategies
click ↑ 4 Featured Selling cash-secured puts (CSP) has a goal of generating weekly or monthly cash flow with or without taking possession of the underlying security. This article will analyze a real-life weekly (6/3/2024 – 6/7/2024) trade with Pinterest, Inc....
Jul 27, 2024 | Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Put-selling, Stock Option Strategies
click ↑ 4 Featured When we sell cash-secured puts with the goals of generating cash-flow while simultaneously crafting trades with low probability of exercise, strike selection becomes critical. To accomplish these objectives, we can turn to implied volatility (IV)...
May 18, 2024 | Fundamental Analysis, Investment Basics, Option Trading Basics, Options Calculations, Put-selling, Stock Trading & Taxes
click ↑ 4 Featured Intuitively, at-the-money (ATM) calls and puts should be priced the same. In most instances, this is not the case. ATM calls are generally priced higher than ATM puts. Why? The reason would center around the cost of carry. The buyer of a...
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