Options trading basics teaches us that the VIX or CBOE Volatility Index reflects the market’s expectation of the upcoming 30-day volatility. It measures market risk and is also known as […]
Using the CBOE Volatility Index (VIX) for Our Strike Price Selection
Posted on August 17, 2019 by Alan Ellman in Investment Basics, Option Trading Basics, Stock Investing, Stock Option Strategies
Covered Puts Are NOT Cash-Secured Puts
Posted on August 10, 2019 by Alan Ellman in Investment Basics, Option Trading Basics, Options Calculations, Put-selling, Stock Investing, Stock Option Strategies
Selling cash-secured puts is one of the go-to strategies in the BCI methodology. There has been some confusion for some of our members who conflate this strategy with covered puts, […]
Structuring a Poor Man’s Covered Call Trade with The Coca-Cola Company
Posted on June 22, 2019 by Alan Ellman in Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Investing, Stock Option Strategies
The Poor Man’s Covered Call (PMCC) is a covered call writing-like strategy where short calls are sold against LEAPS options. There are pros and cons to this trading approach but […]
Cash-Secured Call Options
Posted on June 15, 2019 by Alan Ellman in Investment Basics, Option Trading Basics, Options Calculations, Stock Investing, Stock Option Strategies
One of our favorite option-selling strategies is selling cash-secured puts. This involves selling (usually out-of-the-money) put options and securing the possible future contract assignment with the appropriate amount of cash. […]
Stock Repair Strategy: Breakeven Versus Loss-Reduction Objectives
Posted on June 1, 2019 by Alan Ellman in Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Stock Investing, Stock Option Strategies
Call options can be used to reduce losses on long stock positions. Depending on the degree our share value has declined, our target can be to lower our breakeven point […]
Portfolio Overwriting with Weekly Options
Posted on May 18, 2019 by Alan Ellman in Investment Basics, Option Trading Basics, Options Calculations, Stock Investing, Stock Option Strategies
Portfolio overwriting is a covered call writing alternative strategy where out-of-the-money call options are sold against long-term buy-and-hold positions. Generally, these stocks are of a low cost-basis and generate dividend […]
Selling Cash-Secured Puts to Lower Cost basis
Posted on May 11, 2019 by Alan Ellman in Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Put-selling, Stock Investing, Stock Option Strategies
Selling cash-secured puts can be used to generate monthly cash flow and to buy a stock at a discount. It can also be used to lower the cost-basis of shares […]
Mean Analyst Ratings (MAR)
Posted on May 4, 2019 by Alan Ellman in Fundamental Analysis, Investment Basics, Option Trading Basics, Stock Investing, Stock Option Strategies
The screening process for option-selling watchlists includes fundamental analysis, technical analysis and common-sense screens. The BCI team recently added a new screen, the mean analyst rating (MAR), to replace the […]
Combining Covered Call Writing and the Stock Repair Strategy
Posted on April 27, 2019 by Alan Ellman in Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Stock Investing, Stock Option Strategies
One of our covered call writing exit strategies is converting dead money to cash profits (CDMCP). When share price is declining and under-performing the overall market, we first close the […]
When Should We Execute Our Option-Selling Trades?
Posted on April 6, 2019 by Alan Ellman in Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Stock Investing, Stock Option Strategies
The 3-required skills for covered call writing and selling cash secured puts are stock selection, option selection and position management. We can also add timing of our trades as a […]
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Podcast
- BCI PODCAST 122: Should I Roll-Out My Deep In-The-Money Call Option Mid-Contract?
- BCI PODCAST 121: What is a SPAC (Special Purpose Acquisition Company)?
- 120. Using the Nasdaq-100 Volatility Index (VOLQ) in Covered Call Writing Decisions
- 119. Establishing Our Cost-Basis for Long-Term Holdings
- 118. Adjusting Our Portfolio Mix to Achieve Diversification and Cash Allocation
- 117. When a Covered Call Strike Moves $1000.00 In-The-Money
- 116. How to Execute a Covered Call Trade with a Buy/Write Combination Form
- 115. Establishing Our Cost Basis When Rolling-Out-And-Up On 2 Different Days
- 114. The Poor Man's Covered Call Selecting the Best LEAPS Strikes
- 113. How to Select the Best Strikes for Collar Trades
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Recent Posts
- BCI PODCAST 122: Should I Roll-Out My Deep In-The-Money Call Option Mid-Contract?
- Annualized Returns for Weekly and Monthly Options
- Calculating Covered Call Writing & Cash-Secured Put Trades for the Same Stock and Similar Moneyness
- Ask Alan # 216: Establishing the Cost Basis of an Adjusted Covered Call Trade
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Beginners Corner Enhanced & Updated
- Lesson 1: Beginner's Corner for Covered Call Writing: 2nd Edition
- Lesson 2: Beginner's Corner for Covered Call Writing- 2nd Edition: Option Basics
- Lesson 3: Beginner's Corner for Covered Call Writing- Stock Selection
- Lesson 4: Beginner's Corner for Covered Call Writing-2nd Edition
- Lesson 5: Beginner's Corner for Covered Call Writing
- Lesson 6: Beginner's Corner for Covered Call Writing
- Lesson 7: Beginner's Corner for Covered Call Writing: 2nd Edition
- Lesson 8: Beginner's Corner for Covered Call Writing
- Video 9: Premium Membership
Beginners Corner Selling-Puts
- Lesson 1: What Is Puts Selling?
- Lesson 2: Puts-Selling Option Basics
- Lesson 3:puts-selling-technical analysis
- Lesson 4:puts-selling-Common Sense Considerations
- Lesson 5:puts-selling-Calculating Returns
- Lesson 6:puts-selling-Executing Put-Selling
- Lesson 7:puts-selling- Exit Strategies
- Lesson 8:puts-selling-Mastering Put-Selling
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