Mar 23, 2019 | Fundamental Analysis, Investment Basics, Option Trading Basics, Stock Investing, Stock Option Strategies
The screening process for option-selling watchlists include fundamental analysis, technical analysis and common-sense screens. The BCI team is now adding a new screen the mean analyst rating (MAR) to replace the Scouter Rating we have been using for years. This will...
Feb 23, 2019 | Fundamental Analysis, Investment Basics, Stock Investing
Treasury bond yields are followed by stock investors and changes in yield can impact the success of our trades. In particular, the 10-year treasury yield is used as a yardstick for critical financial issues like mortgages. What is bond yield? This is the...
Jan 26, 2019 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Stock Investing, Stock Option Strategies, Technical Analysis
Earnings reports represent the greatest risk for price gap-downs for our covered call writing and put-selling stocks. Problem solved…we avoid earnings reports. However, from time-to-time unexpected negative news will be reported that will cause significant price...
Jan 19, 2019 | Investment Basics, Option Trading Basics, Options Calculations, Stock Investing, Stock Option Strategies
Generating a consistent cash flow from stock dividends is an appealing benefit from owning shares for many investors. Stock ownership, in these scenarios, can create two income streams, one from price appreciation and the other from quarterly dividends. However, not...
Jan 12, 2019 | Investment Basics, Option Trading Basics, Options Trade Execution, Stock Investing, Stock Option Strategies
Why should we spend the time to educate ourselves on how to implement and manage covered call writing trades? The answer is simple: Once the 3 required skills (stock selection, option selection and position management) are mastered, we will put ourselves in a position...
Nov 17, 2018 | Investment Basics, Option Trading Basics, Options Calculations, Stock Investing, Stock Option Strategies, Technical Analysis
Setting up our covered call writing and put-selling portfolios requires common sense analysis once our watch lists have been established. Considerations include proper stock and industry diversification, appropriate cash allocation to each position and. strike...