beginners corner
Archive | Stock Option Strategies RSS feed for this section

How to Create 3-Income Producing Portfolios Using Covered Call Writing and Dividend Generating Stocks

Covered call writing is a low-risk cash-flow strategy that can also create the potential of a 2nd income stream when using out-of-the-money (OTM) strikes which can also produce potential income […]

8 Comments Continue Reading →

Selling Cash-Secured Puts: Part II

In our last blog publication, 2 put applications were discussed: traditional put-selling and the PCP (wheel) Strategy. In this week’s article, 3 more approaches will be reviewed. Selling cash-secured puts: […]

11 Comments Continue Reading →

Selling Cash-Secured Puts: Multiple Applications: Part I + Tuesday’s Webinar Registration Link

Selling cash-secured puts is a low-risk option-selling strategy where the seller undertakes the contractual obligations to buy shares at the strike price, by the expiration date. In return for undertaking […]

7 Comments Continue Reading →

3 Approaches to Strike Selection When Portfolio Overwriting Existing Stocks: A Real-Life Example with Dow, Inc. (NYSE: DOW) + July 11th Webinar Registration Link

Portfolio overwriting is a covered call writing-like strategy where deep out-of-the-money (OTM) calls are sold against our long-term buy-and-hold securities. Typically, these stocks and exchange-traded funds (ETFs) are of a […]

7 Comments Continue Reading →

Should I Allow Exercise & Repurchase the Stock or Roll the Option?: A Real-Life Example with Tesla, Inc. (Nasdaq: TSLA)

The crafting and managing of our covered call writing trades are directly dependent on our pre-defined goals. In this article, we will analyze a TSLA covered call trade where the […]

9 Comments Continue Reading →

How to Enter and Archive a Covered Call Trade with 1 Exit Strategy that is Closed at Expiration

After entering our covered call trades, we immediately go into position management mode. Frequently, we can take advantage of a covered call exit strategy opportunity, sometimes more than one. This […]

21 Comments Continue Reading →

Should We Get the Kleenex or the Champagne? A Real-Life Trade with Bilibili Inc. (Nasdaq: BILI)

On 12/9/2022, Patrik sent me an email he titled “Covered Call Panic” He shared with me information on his trades and was distraught at the current outcome. This article will […]

19 Comments Continue Reading →

How to Adjust a Poor Man’s Covered Call (PMCC) Trade to Align with the BCI Trade Initialization Formula

The PMCC is a covered call writing-like strategy where LEAPS options act as surrogates for the underlying stock or ETF. It is technically called a long call diagonal debit spread […]

13 Comments Continue Reading →

Evaluating a Series of Multi-Rolling Covered Call Trades: A Real-Life Example with Elevance Health Inc. (NYSE: ELV)

In this article, we will analyze a series of covered call trades shared with me by a BCI premium member. These trade executions involve establishing a bullish covered call position, […]

9 Comments Continue Reading →

Multiple Applications of the Mid-Contract Unwind (MCU) Exit Strategy: A Real-Life Example with Super Micro Computer, Inc. (Nasdaq: SMCI)

Covered call writing exit strategies allow us to mitigate trade losses and enhance trade profits. On 11/30/2022, Paul shares with me a series of trades he executed with SMCI where […]

18 Comments Continue Reading →