Jan 27, 2024 | Fundamental Analysis, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Put-selling, Stock Option Strategies
click ↑ 4 Featured Can we generate meaningful returns writing covered calls or selling cash-secured puts on a 4-day, holiday-shortened trading week? The answer is a resounding yes. This article will focus on a real-life example with PulteGroup, Inc. (NYSE: PHM),...
Jan 20, 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 Always avoid having an option in place if there is an upcoming earnings report prior to contract expiration. This applies to covered call writing and selling cash-secured puts as it will avoid the risk inherent in the reports. However, once the...
Jan 13, 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 When we integrate both covered call writing and selling cash-secured puts into one multi-tiered option selling strategy, we have our Put-Call-Put or PCP Strategy. Outside the BCI community, this is often referred to as the wheel strategy....
Dec 23, 2023 | Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Put-selling, Stock Option Strategies
click ↑ 4 Featured We can leverage our knowledge of cash-secured puts to take advantage of common scenarios. In this article, we will detail how to take advantage of a disappointing earnings report from a stellar blue-chip company. On 7/25/2023, MSFT reported earnings...
Dec 16, 2023 | Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Put-selling, Stock Option Strategies
click ↑ 4 Featured When selling cash-secured puts, a common strategy goal is to avoid exercise and having shares put to us. This means selling out-of-the-money (OTM) strikes that have a low probability of exercise or expiring in-the-money (ITM) or with...
Dec 2, 2023 | Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Put-selling, Stock Option Strategies
click ↑ 4 Featured When cash-secured puts are sold, many investors prefer to avoid exercise and having the shares put to them. If the (originally) out-of-the-money (OTM) strike is in-the-money (ITM) as expiration approaches due to share price decline, buying...
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