Alan answers a question posed by Elliot, who asks: Hi Alan, Hi Alan, I bought SBLK and sold the 3/18/2022 $29.00 call. The stock closed today (2/26) at $31.76 and there is an upcoming ex-dividend date on 3/2/2022. Will my shares be sold on Monday, the day before the ex-date? Thanks, Bob The main cause […]

Adjusting Our Portfolio Mix to Achieve Diversification and Cash Allocation
To decrease portfolio risk for our covered call writing and put-selling portfolios we must be well diversified and allocate a similar amount of cash per position. The allotment of cash per-position will rarely be precise but it is a goal we must incorporate into our methodology. In this article, I will describe the process for […]

BCI PODCAST 15. Strike Selection When Selling Puts
Watch Video: Listen To Audio Version: Identifying strategy goals, initial time-value return goal ranges, market assessment and technical analysis all go into strike price selection when selling cash-secured puts. A real-life example with WWE explores several strike choices and the pros and cons of each strike price. The BCI Put-Selling Calculator is introduced into this […]

BCI PODCAST 13. Adding a Short Put To a Collar Trade
Watch Video: Listen To Audio Version: When we add a protective put to a covered call trade we now have a collar trade. Since that protective put costs us money, it has been suggested to fund that debit with a short put. This podcast examines the pros and cons of such a strategy approach. BECOME […]

Market Volatility and Our Option-Selling Trades: Using the VIX to Achieve Higher Returns
Options trading basics teaches us that the VIX or CBOE Volatility Index reflects the market’s expectation of the upcoming 30-day volatility. It measures market risk and is also known as the investor fear gauge. With this in mind, option-sellers are faced with a dilemma. Increased market volatility will translate into higher option premiums because the […]

Ask Alan #167 What is “Seeking Alpha?”
Alan answers a question posed by Mary, who asks: Alan,Alan, I follow the site Seeking Alpha as well as your BCI site. Can you give your thoughts on how the BCI methodology seeks to beat the market? I’m really enjoying your material. Thanks, Mary ——— It’s the 2nd Wednesday of the month. Time for another […]
Recent Comments