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What Are Wash Sales And Wash Trading? Are They The Same?

Covered call writing and put-selling involve the buying and selling of stocks and options. When executed in non-sheltered accounts, taxable events are created. Since the BCI community is populated with savvy investors, the topic of wash sales has come up frequently and some have used the term wash trading interchangeably with wash sales. This article will discuss […]

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put-selling calculations

Selling Cash-Secured Puts Instead Of Placing Limit Orders

Selling cash-secured puts is a strategy with goals of creating monthly cash flow while retaining capital preservation as a priority. However, many of our astute members are also using this strategy to purchase a stock “at a discount” instead of setting up limit order instructions to the broker. Before highlighting the strategy, let’s review the […]

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covered call writing and put selling decisions using economic reports

Economic Reports And Our Covered Call Writing Decisions

Covered call writing and put-selling results are enhanced by selecting the best underlying securities and most appropriate options. Stock selection involves screening via fundamental and technical analysis as well as common sense screens (like avoiding earnings reports). Option selection is based on several factors including chart analysis, overall market assessment and personal risk tolerance. In […]

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What I wish for you

Covered call writing has played a major role in allowing me to do the things I want to do when I want to do them. I have been able to devote time to family, friends and my extended family, the BCI community, which I wouldn’t have had the opportunity if not for self-investing with stock […]

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Covered call writing in bear and volatile markets

Emergency Management Report: Dealing with Volatile and Bearish Markets

With the stock market declining over 5% in the past month as a result of geo-political and global concerns exacerbated by the fears of an Ebola epidemic we find ourselves in a position that may lead to “panic” in our investment decisions. The stock market seemed to stabilize a bit on Friday but we are […]

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compounding covered call writing profits

Simple Interest And Compound Interest

In Volume 1 of the Complete Encyclopedia for Covered Call Writing, I addressed the importance of compounding profits and discussed the Rule of 72 (the time it takes to double your money based on annualized return on investments). In this related article, I will highlight the difference between simple interest and compounded interest and therefore […]

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market assessment and covered call writing

The Role Of VIX and Market Volatility In Our Covered Call Writing Decisions

Options trading basics teaches us that the VIX or CBOE Volatility Index demonstrates the market’s expectation of 30-day volatility. It measures market risk and is also known as the investor fear gauge. With this in mind, covered call writers are faced with a dilemma. Increased market volatility will translate into higher option premiums because the […]

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Portfolio overwriting and ex-dividend dates

Using Covered Call Writing To Increase The Returns From A Buy And Hold Portfolio: Part II

Last week I wrote Part I of an article on portfolio overwriting, a covered call-like strategy for buy and hold portfolios. In today’s article I will walk you through the process of how this strategy can be accomplished. Keep in mind that there are many ways to approach any given strategy, this is one of […]

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portfolio overwriting and ex-dividend dates

Using Covered Call Writing To Increase The Returns From A Buy And Hold Portfolio: Part I

Covered call writing is a conservative strategy that encompasses a great deal of inherent application flexibility. In my first 3 books and DVD Programs I have discussed the use of LEAPS as a stock surrogate, protective puts, the use of cash-secured puts to enter a covered call trade at a discount and portfolio overwriting. In […]

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