Combining Covered Call Writing and Selling Cash-Secured Puts

Combining Covered Call Writing and Selling Cash-Secured Puts

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....
Selling Weekly Puts After Disappointing Earnings Reports: A Real-Life Example with Microsoft Corp. (Nasdaq: MSFT)

Selling Weekly Puts After Disappointing Earnings Reports: A Real-Life Example with Microsoft Corp. (Nasdaq: MSFT)

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...
Buying Back OTM Cash-Secured Puts on Expiration Friday to Avoid Potential Exercise + $25 Discount Coupon

Buying Back OTM Cash-Secured Puts on Expiration Friday to Avoid Potential Exercise + $25 Discount Coupon

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...