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Tag Archives: American Depository Receipt

American Depository Receipts and Special 1-Time Cash Dividends/ Discount Coupons for New Book & Calculators

When viewing option chains while crafting our covered call writing portfolios, from time-to-time we will see unusual strike prices. These anomalies are usually associated with various corporate events that result in option contract adjustments. Such events include stock splits, mergers and acquisitions and the one highlighted in this article, special 1-time cash dividends. In July […]

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contract adjustments and covered call writing

Special 1-Time Cash Dividends and Strike Prices of American Depository Receipts (ADRs)

Contract adjustments for covered call writing and put-selling are not uncommon events and we must be prepared when they occur. From time to time a certain corporate event will take place that will alter the terms of an equity options contract, making it different from the original standardized terms such as the number of deliverable […]

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exchange traded funds for covered call writing and selling cash-secured puts

ASHR: Exchange-Traded Fund in the Spotlight

Exchange-traded funds (ETFs) offer covered call writers and put-sellers the advantage of instant diversification and generally have a lower implied volatility associated with them compared to individual stocks. Whether we are dealing with stocks or ETFs each security must be evaluated on its own merit before using it as the underlying security. In this article, […]

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