How to Use Stock Options to Lower Our Breakeven Price Points: The Stock Repair Strategy

How to Use Stock Options to Lower Our Breakeven Price Points: The Stock Repair Strategy

click ↑ 4 Featured Stock options can be used to mitigate losses on shares we own at a higher price than current market value. Some investors will buy more shares at the new lower price and average-down, thereby adding more cash to an already losing trade. This article...
How Our Covered Call Trades are Impacted When Regular and Special 1-Time Cash Dividends Come on the Same Day

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 special 1-time cash dividends. This article will analyze a...
Exercising Call Options to Capture Dividends: A Reasonable Action or Investor Error?

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 shares sold at the strike price. This article will analyze the profitability...