Apr 8, 2017 | Investment Basics, Option Trading Basics, Stock Investing, Stock Option Strategies
Whether we are selling covered calls or cash-secured puts we frequently look to our broker platforms for ways of enhancing our trading success. As these platforms become more sophisticated and competitive, there are a myriad of software analytical programs offered...
Apr 1, 2017 | Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
Standard covered call writing contracts consists of 100 shares deliverable. When we sell one standard covered call contract we are agreeing to sell (deliver) 100 shares. Since many retail investors lack the capital to first buy 100 shares of expensive underlying...
Mar 25, 2017 | Covered Call Exit Strategies, Exit Strategies, Option Trading Basics, Stock Investing, Stock Option Strategies, Technical Analysis
The BCI methodology requires fundamental analysis, technical analysis and common sense screening (like minimum trading volume and avoiding earnings reports). One of the most difficult decisions retail investors face is when to sell a stock that has depreciated in...
Mar 18, 2017 | Covered Call Exit Strategies, Exit Strategies, Option Trading Basics, Options Trade Execution, Stock Investing, Stock Option Strategies, Stock Trading & Taxes
Covered call writing and selling cash-secured puts involve buying and selling stocks and options. We work meticulously to do everything possible to throw the odds in our favor to result in successful trades. Achieving the highest level of returns in a low risk manner...
Mar 11, 2017 | Investment Basics, Option Trading Basics, Options Calculations, Put-selling, Stock Option Strategies
Whether I am selling call or put options I prefer to use a cash account. That’s where we invest and utilize only our own cash to purchase stock and secure put trades. More aggressive investors may want to magnify their returns by leveraging margin accounts. This...
Feb 25, 2017 | Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
Covered call writing is a conservative strategy for cautious investors. We want the higher than risk-free returns with the least amount of risk. One question that does come up in this regard is why not enter a short-term trade that offers impressive returns? To get an...