Jul 16, 2022 | Investment Basics, Option Trading Basics, Options Calculations, Put-selling
On 2/21/2022, Frank emailed me about our 10-Delta ultra-low-risk cash-secured put strategy. With Moderna Inc. (MRNA) trading at $145.00 per-share, he asked about using the deep out-of-the-money $118.00 weekly strike that expired on 2/25/2022. Let’s evaluate this...
Jun 5, 2021 | Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
In challenging market environments, we favor in-the-money strikes for our covered call trades. The intrinsic-value component of our option premiums will provide additional downside protection and lower the breakeven price point (BE) below that of at-the-money and...
Sep 12, 2020 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
Exit strategies for covered call writing is the 3rd required skill that must be mastered to achieve the highest possible returns. In January 2020, a member shared with me a trade she executed with BlackRock, Inc. (NYSE: BLK). The stock was trading at a cost-basis of...
Sep 5, 2020 | Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
Covered call writing trades can be entered by legging-in (buy stock and then sell option) or as a buy/write trade (one net debit limit order). In the latter order, the option premium is deducted from the stock price and the broker is required to execute the trade and...
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