Apr 18, 2015 | Investment Basics, Option Trading Basics, Stock Investing, Stock Option Strategies, Stock Trading & Taxes
Covered call writing and put-selling involve the buying and selling of stocks and options. When executed in non-sheltered accounts, taxable events are created. Since the BCI community is populated with savvy investors, the topic of wash sales has come up frequently...
Apr 4, 2015 | Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Investing, Stock Option Strategies
Selling cash-secured puts is a strategy with goals of creating monthly cash flow while retaining capital preservation as a priority. However, many of our astute members are also using this strategy to purchase a stock “at a discount” instead of setting up...
Mar 28, 2015 | Covered Call Exit Strategies, Exit Strategies, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
Covered call writing and put-selling calculations must be accurate and preferably understood by option-sellers. I created the Ellman Calculators to facilitate the authentic computations we depend on. In this article, I will review a successful trade executed by one of...
Mar 21, 2015 | Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies, Stock Trading & Taxes
In a recent article, tax implications for covered call writing was discussed. In this publication I will highlight the tax ramifications as they apply to selling put options. What is a Capital Gain? A capital gain is an increase in the value of as capital asset, such...
Mar 7, 2015 | Investment Basics, Option Trading Basics, Stock Option Strategies
Stocks eligible for our covered call writing and put-selling portfolios are screened in a 3-pronged approach: fundamental analysis, technical analysis and “common sense principles” like avoiding earnings reports. One of the categories under the common...
Feb 28, 2015 | Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
Understanding the Greeks, or factors that impact the value of our covered call premiums, is essential to mastering options trading basics and becoming an elite covered call writer. One of the Greeks (although not truly a Greek letter) is Vega, the amount an option...
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