How to Use Stock Options to Lower Our Breakeven Price Points: The Stock Repair Strategy

How to Use Stock Options to Lower Our Breakeven Price Points: The Stock Repair Strategy

Oct 14, 2023 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Investing, Stock Option Strategies

click ↑ 4 Featured Stock options can be used to mitigate losses on shares we own at a higher price than current market value. Some investors will buy more shares at the new lower price and average-down, thereby adding more cash to an already losing trade. This article...

Analyzing the Pros & Cons of Rolling-Up a Covered Call Trade + Expected Price Movement Calculator Now Available

Oct 7, 2023 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies

click ↑ 4 Featured There are times when our covered call writing trades turn out much better than anticipated, and share price rises exponentially after trade entry. Barry R. shared with me a series of trades he executed with E.L.F. Beauty, Inc. (NYSE: ELF), where the...
Is Covered Call Writing an Option Zero-Sum Strategy? + See Our New “Featured Product” Section

Is Covered Call Writing an Option Zero-Sum Strategy? + See Our New “Featured Product” Section

Sep 30, 2023 | Covered Call Exit Strategies, Investment Basics, Just Alan, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies

click ↑ 4 Featured Covered call writing is not a zero-sum strategy. Both the option-seller (call writer … us) and the call buyer can be successful. This article will provide a hypothetical example, demonstrating a scenario where both call buyer and seller end up...
When Should I Take My Profits with a Successful Covered Call Writing Trade?

When Should I Take My Profits with a Successful Covered Call Writing Trade?

Sep 9, 2023 | Covered Call Exit Strategies, Exchange-Traded Funds, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies

Which %, if any, of our original covered call writing initial time-value return, should we use to close both legs of the trade, and guarantee a realized return? 60%? 75%? Higher? Lower? Closing both legs of a covered call writing trade mid-contract is known as the...