Can Price Movement Be Explained by Profit-Taking?: A Real-Life Example with Global X Funds Infrastructure Dev. (PAVE)

Can Price Movement Be Explained by Profit-Taking?: A Real-Life Example with Global X Funds Infrastructure Dev. (PAVE)

On April 8,2021, Nathan shared with me his covered call writing trade with PAVE which was initiated 3 days earlier. This exchange-traded fund had a strong technical chart but the price started declining immediately after the trade was entered. Nathan commented that he...
How to Set Up a Portfolio of Nasdaq and S&P 500 Stocks in a User-Friendly Approach

How to Set Up a Portfolio of Nasdaq and S&P 500 Stocks in a User-Friendly Approach

Covered call writers and sellers of cash-secured puts know the importance of portfolio diversification. If one security under-performs, the others can compensate. This article will demonstrate how to craft a portfolio of large-cap tech and blue-chip companies for our...
Dividend Yield Should Be a Secondary Factor When Selecting Stocks for Our Covered Call Writing Portfolio

Dividend Yield Should Be a Secondary Factor When Selecting Stocks for Our Covered Call Writing Portfolio

Combining covered call writing premiums with high dividend yields can be an enticing investment approach. In October 2019, Gerry wrote to me about using MPLX LP (NYSE: MPLX) in her option-selling portfolio and pointed to the generous dividend yield and real-estate...