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How Our Covered Call Trades are Impacted When Regular and Special 1-Time Cash Dividends Come on the Same Day

The parameters of our covered call trades are often changed when certain corporate events result in option contract adjustments. These events include stock splits, mergers & acquisitions as well as […]

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Review of Dividend Dates & Their Impact on Our Covered Call Trades

The main reason for early exercise of our covered call writing options relates to corporate dividends. The key date to be aware of is the ex-dividend date. This article will […]

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Exercising Call Options to Capture Dividends: A Reasonable Action or Investor Error?

Dividend capture is the main reason for early exercise of our covered call writing trades. More specifically, ex-dividend dates are the times most susceptible to early exercise and having our […]

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Will My Stock Be Sold Because of the $2.00 Dividend? A Real-Life Example with Star Bulk Carriers Corp. (Nasdaq: SBLK)

On 2/21/2022, Bob wrote a 3/17/2022 $29.00 call on SBLK. On 2/26/2022, SBLK was trading at $31.76 and the cost-to-close the short call was $2.78. On 3/1/2022, SBLK was going […]

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Should Good News Discourage Us From Entering a Covered Call Trade?

We examine the BCI Premium Stock Report on the Sunday May 23, 2021, after expiration Friday, for our Monday trade selections. One of the securities we choose is Applied Materials, […]

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Managing Implied Volatility Risk by Establishing an Initial Time-Value Return Goal Range + Webinar Login Link

When screening for eligible securities for covered call writing and selling cash-secured puts, we must establish how much risk we are willing to incur. There is no right or wrong […]

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How to Set Up a Portfolio of Nasdaq and S&P 500 Stocks in a User-Friendly Approach

Covered call writers and sellers of cash-secured puts know the importance of portfolio diversification. If one security under-performs, the others can compensate. This article will demonstrate how to craft a […]

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What is a SPAC (Special Purpose Acquisition Company)?

Are SPACs reliable candidates for our covered call writing and put-selling portfolios? This article will define and explain the anatomy of a SPAC so we can decide if they deserve […]

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Adjusting Our Portfolio Mix to Achieve Diversification and Cash Allocation

To decrease portfolio risk for our covered call writing and put-selling portfolios we must be well diversified and allocate a similar amount of cash per position. The allotment of cash […]

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Spinoffs and Stock Splits: How Multiple Corporate Events Can Impact Share Price

Our covered call writing and put-selling positions can be radically impacted by corporate events. In July 2020, Match Group, Inc. (NASDAQ: MTCH) showed extreme price volatility due to 2 corporate […]

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