Apr 22, 2023 | Covered Call Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
The Poor Man’s Covered Call is a covered call writing-like strategy where a LEAPS option is used as a surrogate for the actual stock or exchange-traded fund (ETF). When structuring our PMCC trades, we must make sure it aligns with our required initial...
Apr 8, 2023 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
To properly analyze our covered call writing and put-selling trades, we must accurately record each step of the trades such that initial and final results are accurate. In this article, a hypothetical covered call trade which starts out in-the-money (ITM) but ends up...
Apr 1, 2023 | Investment Basics, Option Trading Basics, Stock Option Strategies
Populating our covered call writing and put-selling portfolios during earnings season can be challenging but nothing we can’t overcome. This article will provide ideas as to how to craft our portfolios using elite-performing securities while still avoiding the...
Mar 25, 2023 | Investment Basics, Option Trading Basics, Options Trade Execution, Stock Option Strategies, Technical Analysis
In our BCI methodology, we use a 3-pronged approach to screening for our covered call writing and put-selling portfolios: Fundamental analysis (sales & earnings Technical analysis (trend, volume and momentum) Common-sense principles (minimum trading volume,...
Mar 18, 2023 | Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Put-selling, Stock Option Strategies
Selling deep out-of-the-money cash-secured puts in bear markets will provide us with additional protection to the downside in return for lower, but still significant, option returns. This article will highlight the use of Delta and implied volatility to establish a...
Mar 11, 2023 | Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies, Stock Trading & Taxes
Covered call writing is a low-risk, cash generating option-selling strategy. Premium is generated by undertaking the contractual obligation to sell our shares at a price (strike price) and date (expiration date) that we, the option sellers, determine. Frequently,...
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