Oct 3, 2015 | Investment Basics, Option Trading Basics, Stock Option Strategies
There are certain fallacies and deceptions associated with covered call writing as there are with all investment strategies. I am the first to say that there is no one strategy right for every single investor. We must master the pros and cons of each strategy to...
Sep 19, 2015 | Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
When we sell covered calls or cash-secured puts we understand the factors that go into the premiums we receive: The option’s exercise price The current price of the underlying The risk-free interest rate over the life of the option Dividends, when applicable The...
Sep 12, 2015 | Investment Basics, Option Trading Basics, Stock Option Strategies
In the BCI methodology, we never sell a covered call or cash-secured put on a stock with a projected earnings report date prior to contract expiration. When selling our traditional monthly options this means we are only able to use a particular stock for eight months...
Sep 5, 2015 | Covered Call Exit Strategies, Exchange-Traded Funds, Option Trading Basics, Options Calculations, Put-selling, Stock Option Strategies
Selling out-of-the-money puts and using top-performing SelectSector SPDRs can be combined to design an extremely defensive option-selling strategy in a volatile market environment like we are currently experiencing. Using Inverse Exchange-traded Funds is another...
Aug 29, 2015 | Investment Basics, Option Trading Basics, Stock Option Strategies
Option returns play a major role in our covered call writing and put-selling strategies. Mega-returns can be quite enticing but also very dangerous. Recently, with market volatility rising exponentially in response to global-economic concerns, a few of our members...
Aug 22, 2015 | Investment Basics, Option Trading Basics, Stock Option Strategies
“Selling covered call options and cash-secured puts is a smarter strategy than buying options because 90% of options expire worthless”. We’ve all heard this argument but never from me because it is simply not accurate. The reason so many...
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