Mar 16, 2013 | Option Trading Basics, Options Calculations, Stock Option Strategies
Several of our Premium Members have requested we provide sample portfolios based on the CURRENT Premium Watch List as a guide to assist in mastering the strategy of covered call writing. In today’s article I will use the watch list dated 3-8-13 (stats taken on...
Mar 9, 2013 | Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
Covered call writing involves options calculations…there’s no getting around it! It’s been a while since we talked math. What’s with all the frowns? Mastering and understanding the calculations (The Ellman Calculator will do all the work) will enhance our...
Feb 7, 2013 | Investment Basics, Option Trading Basics, Options Calculations, Stock Investing
Can covered call writing profits be leveraged to even higher levels using margin accounts? In real estate investing, the concept of leveraged investing is well known and documented in such best-sellers as Robert G. Allen’s Nothing Down for the 2000s and Michael A....
Nov 17, 2012 | Option Trading Basics, Options Trade Execution
There are two ways to enter a covered call position. The first is called legging-in where the stock is purchased and then the option is sold. Two distinct trades are executed. The second is known as a buy-write order where the security purchase and option sale is...
Aug 18, 2012 | Investment Basics, Option Trading Basics, Options Calculations
In last week’s article concerning option trading basics I highlighted the in-the-money strike in our covered call writing strategy. In this article I will expand our options calculations to all three types of strike prices. First, let’s review each of...
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