Covered call writers receive option premiums for undertaking the obligation to sell our shares to the option holder if that holder decides to exercise that right. Understanding when and why […]
Covered Call Writing: Setting Up A Stop Loss Order
Successful covered call writing requires the appropriate use of exit strategies to mitigate losses and enhance gains. In today’s article, we will focus on actions that can be taken when a […]
Why Has Covered Call Writing Become So Popular? Ask The Baby Boomers!
I’ve been writing covered calls since the 1990s. None of my friends or relatives ever heard of this strategy and no one I knew was using it. Back then, there […]
Unusual Options Activity: Speculation or Cheating?
Covered call writers are average retail investors looking to generate monthly cash flow in small but consistent increments and then compounding those profits. In time, it could lead to financial […]
Why Use Technical Analysis: An Example Of A Complete Technical Breakdown
Technical analysis or fundamental analysis…which should we use in the stock selection process for covered call writing? Many sophisticated investors can make an impressive argument for one or the other. […]
Option Approval Levels For Our Brokerage Accounts
Covered call writing along with all other stock and option strategies require us to open a brokerage account. This process will take more than a simple phone call. All brokerages […]
The CBOE BuyWrite Index (BXM) vs. The BCI System
Several studies have been undertaken to determine the effectiveness of the covered call writing strategy. I believe that it is important to evaluate the parameters that are used as well […]
Special 1- Time Cash Dividends and Our Covered Call Positions
Every so often we will see a company declare a “special dividend” which is separate from the typical recurring dividend cycle, if there is one. It is frequently a reflection […]
Examining A Covered Call Trade
Mastering covered call writing requires us to learn from our mistakes and not repeating them. We can then utilize a series of guidelines and rules that will guide us to […]
Should I Roll My Option When The Stock Price Is DEEP In-The-Money?
Exit strategy execution is a critical skill every covered call writer should master. In addition to managing positions where share price has decreased there are also situations where we can […]
Podcast
- 126. Analyzing the Status of a Rolling-Down Trade
- 124. Dividends and After-Hours News Causing Exercise of OTM Call Strikes
- 123. Implied Volatility, IV Rank and IV Percentile Defined and Practical Applications
- BCI PODCAST 122: Should I Roll-Out My Deep In-The-Money Call Option Mid-Contract?
- BCI PODCAST 121: What is a SPAC (Special Purpose Acquisition Company)?
- 120. Using the Nasdaq-100 Volatility Index (VOLQ) in Covered Call Writing Decisions
- 119. Establishing Our Cost-Basis for Long-Term Holdings
- 118. Adjusting Our Portfolio Mix to Achieve Diversification and Cash Allocation
- 117. When a Covered Call Strike Moves $1000.00 In-The-Money
- 116. How to Execute a Covered Call Trade with a Buy/Write Combination Form
A note about this week's ETF report: There are several new editions to this week’s report with high implied volatility.…
Premium members: This week's 5-page report of top-performing ETFs, along with our sample trade of the week, has been uploaded…
Elliot, This is managed by adding the dividend amount to the option premium and making a note in the associated…