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....
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...
Apr 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, we have 2 possible outcomes. If unexercised, we generate cash flow or, if exercised, we buy the underlying security at a discount. This article will provide a blueprint as how to craft our put-selling...
Feb 24, 2024 | Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Put-selling, Stock Option Strategies
click ↑ 4 Featured On 10/20/2023, a BCI premium member shared with me a cash-secured put series of trades executed with Charles Shwab Corp. (NYSE: SCHW). Over the course of 9 months, SCHW dropped in price from approximately $83.00 to $50.87. This...
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...
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