Technical analysis is an integral component of our BCI methodology for covered call writing. When identifying stocks for our watch lists and portfolios, we look for uptrending price patterns and utilize moving averages to confirm these trends. In an ideal situation the price bars (OHLC) bounce off and above the short-term (20-day) exponential moving average. When […]
Moving Averages And Our Covered Call Selections
Technical analysis is a critical part of our covered call writing success. We use it for both stock selection, exit strategy execution and timing of our trades. We screen stocks fundamentally and technically via the IBD 50, SmartSelect Scan and MSN Scouter. We make sure we have industry diversification and cash allocation equality. Earnings reports and […]
Covered Call Writing and The CBOE’s Volatility Index (VIX)
Stock options strategies, including covered call writing, factor in a multitude of parameters including fundamental and technical analysis as well as many common sense principles. In my books, DVDs and seminars I discuss determining market tone before making any investment decisions. One of the main factors I utilize in this determination is the VIX. The VIX […]
Technical Analysis: How to Use Volume in our Covered Call Decisions
When learning how to trade options volume must always be factored in. Volume is the number of shares or contracts that trade over a specific period of time, usually one day. On a chart, volume is represented as a histogram (vertical bars) overlaid on or below the price chart. This indicator is an essential part […]
The Stochastic Oscillator- A Momentum Technical Indicator
When using the covered call writing strategy, it is critical to select stocks with positive price momentum. This will increase the probability of maximizing our profits. One of the technical indicators included in the BCI methodology is the stochastic oscillator. The stochastic oscillator is a momentum indicator that shows the location of the current closing […]
Volume- A Critical Technical Analysis Indicator
Volume is the number of shares or contracts that trade over a specific period of time, usually one day. On a chart, volume is represented as a histogram (vertical bars) below the price chart. This indicator is an essential part of every technical formation as a price pattern will typically have a volume pattern attached […]
Technical Market Theories:More Tools for the Technical Analyst plus Industry in the Spotlight
Chapter 8 in Cashing in on Covered Calls is devoted to technical analysis. This is a method of predicting future stock price movements based on observation of historical stock price movements. We use it to identify trends and for our buy/sell decisions. The parameters I chose for my system include moving averages, MACD, stochastics and […]
Podcast
- 99. Anatomy of a Reverse Stock Split
- 98. Analyzing LEAPS Options for the Poor Man's Covered Call
- 97. Managing Our Poor Man's Covered Call Trades When Share Price Drops Substantially
- 96. Protecting Our Covered Call Trades: Protective Puts and In-the-Money Strikes
- 95. Covered Call Writing to Generate Premium and Dividend Income
- 94. Covered Call Writing Net Debit Limit Orders
- 93. WHEN CALL STRIKES MOVE DEEP ITM EARLY IN A CONTRACT
- 92. Selling Deep OTM Cash-Secured Puts to Create High-Probability Returns
- 91. Portfolio Overwriting Analyzed
- 90. Entering a Collar Trade
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