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P&L graph showing the importance of exit strategies when covered call writing

Profit And Loss Graphs For Covered Call Writing

Covered call writing, like most investment strategies, has a certain risk/reward profile relating to potential profits and losses. A profit and loss graph  is a  graphical representation of the potential […]

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Covered call writing and the stock market

Why Has Covered Call Writing Become So Popular? Ask The Baby Boomers!

I’ve been writing covered calls since the 1990s. None of my friends or relatives ever heard of this strategy and no one I knew was using it. Back then, there […]

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Stock screening for covered call writing

A Review Of Fundamental Analysis for Covered Call Writing

Fundamental analysis is our first step in evaluating securities for use in the covered call writing strategy. It is a method of evaluating a company’s stock by examining its financial […]

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Unusual options activity and covered call writing

Unusual Options Activity: Speculation or Cheating?

Covered call writers are average retail investors looking to generate monthly cash flow in small but consistent increments and then compounding those profits. In time, it could lead to financial […]

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Screening stocks for covered call writing

Stock Exchanges: The New Way To Calculate Trading Volume

In the BCI methodology for covered call writing, we require an average minimum daily trading volume for the underlying security of 250,000 shares or more. This is important because it […]

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Using LEAPS to increase dividend yield

Using LEAPS Covered Calls to Increase Dividend Yield

Innovative covered call writers can develop ideas of implementing a strategy in unconventional ways. For example, we can invest in a money market or CD and perhaps not even beat the […]

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Then Blue Collar Investor methodology for screening covered call writing candidates

Covered Call Writing – Fundamental and Technical Analysis: Earnings and Price Strength Analysis

Successful covered call writing requires discipline and appropriate analysis specific for this great strategy. In the Blue Collar Investor (BCI) methodology we incorporate three major screening components before we even […]

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option liquidity

What Is Slippage And How Does It Impact Our Trading Success?

When studying investment basics, the term slippage has two applications. In general, it means having a trade executed at a price less favorable to the trader. Let’s look at the […]

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