Nov 30, 2013 | Covered Call Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Stock Investing, Stock Option Strategies
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...
Nov 23, 2013 | Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
Two of the cornerstones of the BCI methodology for covered call writing involves selling options with 1-month expirations and avoiding earnings reports. Several of our astute members have inquired about selling 2-month options instead. The rationale is that all stocks...
Nov 9, 2013 | Investment Basics, Option Trading Basics, Options Trade Execution, Stock Option Strategies
Our covered call writing strategy involves both buying and selling options. Mastering our options trade executions can bring our profit level to even higher levels. We know that a general rule is that we buy at the “bid” (the lower figure) and sell at the...
Nov 2, 2013 | Exchange-Traded Funds, Investment Basics, Stock Investing, Stock Option Strategies
Our premium members receive a weekly report of exchange-traded funds (ETFs) appropriate for covered call writing. These lists will never include a leveraged ETF because we feel that these securities are too risky and suitable only for sophisticated investors with...
Oct 12, 2013 | Investment Basics, Option Trading Basics, Stock Investing, Stock Option Strategies
Covered call writing can be used in conjunction with other strategies such as portfolio overwriting and dividend capture strategies. I have highlighted many of these covered call-related strategies in my books and DVDs. One of the strategies that has captured the...
Oct 5, 2013 | Exchange-Traded Funds, Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
Traditional covered call writing consists of buying a stock or exchange-traded fund (ETF) and selling a call option to generate cash flow. Frequently BCI members will think outside the box and add additional strategies and products to create a covered call...
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