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...
Feb 18, 2017 | Investment Basics, Option Trading Basics, Options Calculations, Put-selling, Stock Option Strategies
Selling Cash-Secured Puts can be used to accomplish several goals; Generate cash flow Buy a stock at a discount Used as part of a multi-tiered option selling strategy along with covered call writing (PCP strategy) Our strategy goal along with overall market...
Feb 11, 2017 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Stock Option Strategies
Never sell a covered call option or a cash-secured put for a stock with an upcoming earnings report. This is one of the most important rules in the BCI methodology. As a matter of fact, most other principles I refer to as guidelines because there is some leeway or...
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