Dec 20, 2014 | Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
A Covered combination (“combo trade”) trade is the simultaneous sale of an out-of-the-money (OTM) call and an out-of-the-money put with the same expiration date on 100 shares of a stock or ETF (exchange-traded fund). It consists of a combination of a...
Dec 6, 2014 | Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
Our stock options strategies, whether writing covered calls or selling cash-secured puts (the topic on my just published book) requires us to make an overall market assessment before entering any trades. In last week’s article we evaluated bull market scenarios....
Oct 18, 2014 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Stock Investing, Stock Option Strategies
With the stock market declining over 5% in the past month as a result of geo-political and global concerns exacerbated by the fears of an Ebola epidemic we find ourselves in a position that may lead to “panic” in our investment decisions. The stock market seemed to...
Aug 2, 2014 | Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
Covered call writing is the main focus of this site and the BCI methodology. Based on member demand and similarity of strategies we have been adding information on selling cash-secured puts, the topic of my upcoming 5th book. Recently I have received inquiries on...
May 17, 2014 | Exchange-Traded Funds, Investment Basics, Option Trading Basics, Stock Option Strategies
Covered call writing is a stock option strategy with primary goals of income generation and capital preservation. Most of us are conservative investors who use the power of education to master an investment strategy better than most everyone else using the same...
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