Sep 2, 2023 | Fundamental Analysis, Investment Basics, Option Trading Basics, Stock Option Strategies, Technical Analysis
In our BCI methodology, we have a 3-pronged approach to stock selection for our covered call writing trades: Fundamental analysis Technical analysis Common-sense principles (minimum trading volume, avoiding earnings reports, among others) We use a mosaic of all 3...
Aug 26, 2023 | Fundamental Analysis, Investment Basics, Option Trading Basics, Stock Investing, Stock Option Strategies, Stock Trading & Taxes
The parameters of our covered call trades are often changed when certain corporate events result in option contract adjustments. These events include stock splits, mergers & acquisitions as well as special 1-time cash dividends. This article will analyze a...
Aug 19, 2023 | Covered Call Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
Covered call writing versus cash-secured puts in bull markets … which is better? This article will present the arguments for both and make a case why I prefer covered call writing in favorable, uptrending market conditions. The case for cash-secured puts (CSP)...
Aug 12, 2023 | Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
The Poor Man’s Covered Call (PMCC) is a covered call writing-like strategy where deep in-the-money (ITM) LEAPS options replace the long stock positions. LEAPS have expirations of greater than 1 year. Once the LEAPS is purchased, we then sell a call option,...
Aug 5, 2023 | Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
This is one of the most frequently asked questions I receive from covered call writers all over the world. Should I use a 40-Delta? 35-Delta? Higher? Lower? The focus is on Delta when it shouldn’t be. This article will use a real-life example with Etsy, Inc....
Jul 29, 2023 | Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Put-selling, Stock Option Strategies
The collar strategy is a covered call writing-like strategy where a protective put is added to the covered call trade, creating a 3-leg trade. BCI has developed 2 calculators that can be utilized with the collar strategy. This article will demonstrate how to use the...
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