Establishing Our Cost-Basis When Rolling Out-And-Up on 2 Different Days

Establishing Our Cost-Basis When Rolling Out-And-Up on 2 Different Days

Feb 13, 2021 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies

One of our covered call writing exit strategies is rolling-out-and-up. We use this position management technique when our short call is in-the-money (ITM) as expiration approaches and we decide to retain the shares for the next contract month (or week). For example,...
Exit Strategies are Important but Must Be Timed Properly + Free Webinar Link

Exit Strategies are Important but Must Be Timed Properly + Free Webinar Link

Jan 16, 2021 | Covered Call Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies

Exit strategy execution for covered call writing and put-selling is the 3rd required skill needed to achieve the highest returns (stock and option selection are the other two). Knowing how and when to implement these position management trades will have a major impact...
Rolling-Down On a Sharp Market Decline at the End of a Contract

Rolling-Down On a Sharp Market Decline at the End of a Contract

Jan 9, 2021 | Covered Call Exit Strategies, Exchange-Traded Funds, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies

Exit strategy opportunities may be created when there is a substantial 1-day market decline and we must be prepared to take advantage of these occasions. In June 2020, there was an 1800 point decline in the Dow 30 due to coronavirus concerns and national unrest...
Using Covered Call Options and Stock Dividends in Low-Interest Rate Environments

Using Covered Call Options and Stock Dividends in Low-Interest Rate Environments

Jan 2, 2021 | Covered Call Exit Strategies, Fundamental Analysis, Investment Basics, Option Trading Basics, Options Calculations, Stock Investing, Stock Option Strategies

Covered call writing can be crafted to meet a myriad of goals in a wide range of market conditions. In May of 2020, the 10-year Treasury Bond yield was 0.65%. Bank interest rates in several countries were negative. At the same time, dividend yield on Dow 30 and...