Oct 26, 2024 | Covered Call Exit Strategies, Exchange-Traded Funds, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
click ↑ 4 Featured Hitting a Double is a covered call writing exit strategy where the short call is bought back after share price declines and resold when share price recovers. At expiration, we may decide to buy back the 2nd short call and sell the shares. This...
Oct 19, 2024 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
click ↑ 4 Featured An important BCI rule is never to write a covered call or sell a cash-secured put if there is an upcoming earnings report … too risky if the report disappoints and we don’t want to cap the upside if the report is favorable. There are...
Oct 12, 2024 | Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
click ↑ 4 Featured Always avoid earnings reports when selling covered call or cash-secured put options. This is a BCI rule to protect against serious share price decline after a disappointing earnings release. This article will analyze a real-life example with...
Oct 5, 2024 | Covered Call Exit Strategies, Exchange-Traded Funds, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
click ↑ 4 Featured When we construct our covered call writing and cash-secured put portfolios, we must incorporate cash allocation into our investment decisions. In this article, The BCI Portfolio Setup Spreadsheet, the Trade Management Calculator (TMC) and the...
Sep 28, 2024 | Fundamental Analysis, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
click ↑ 4 Featured When crafting our covered call writing trades, we can do so aggressively, using out-of-the-money (OTM) call options, or defensively, using in-the-money (ITM) strikes. In this article, a real-life example with GigaCloud Technology Inc. (Nasdaq: GCT),...
Sep 21, 2024 | Exchange-Traded Funds, Fundamental Analysis, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
click ↑ 4 Featured When we sell weekly cash-secured puts or write weekly covered calls, our trades are, typically, entered on Monday and completed on Friday. This avoids the weekend risk of longer-dated options. These Monday-Friday entries may create inflated initial...
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