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Tag Archives: covered call writing exit strategies
covered call writing calculations

When Strikes Move Deep In-The-Money: A Real-Life Trade

Covered call writing exit strategies include scenarios when share price moves up or down. Our main enemy is share depreciation where we need to mitigate losses but we must also have the ability to enhance returns when share price rises under certain specific conditions. This article will evaluate a trade sent to us by Mario […]

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option chains for covered call writing

Temporary Self-Loans for the Mid-Contract Unwind Exit Strategy

The mid-contract unwind (MCU) exit strategy is a position management maneuver we use to generate a second income stream in the same month with the same cash investment. The opportunity arises when share price moves significantly higher than the short call strike in the first half of a contract. This article will highlight a real-life […]

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Exit Strategy Selectivity: Can We Implement Too Many Exit Strategies?

Covered call writers, historically, have ignored exit strategies as part of their investment approach. Certainly, not in the BCI community but most everywhere else. As we become aware of the major financial benefits of mastering the position management skill, we must be mindful of the possibility of over-management. Eating a slice of pizza is enjoyable, eating a […]

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covered call writing webinars

Executing Exit Strategies in a Timely Manner

After executing our covered call writing trades, we immediately prepare for position management opportunities…exit strategies. One of these strategies in our arsenal is the Mid Contract Unwind exit strategy. This is used when share value appreciates dramatically resulting in a time value cost-to-close of near zero. In other words, the option originally sold will be […]

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exit strategies for covered call writing

Rolling Up in the Same Contract Month: Comparing Before and After Scenarios

Rolling up is a useful exit strategy for both covered call writing and put-selling. However, in my humble opinion, it rarely benefits us to roll up in the same contract month. The main reason for this conclusion is that we are dealing with a stock that has substantially appreciated in value in a relatively short […]

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exit strategies for covered call writing

Rolling Down with CALM: Turning Losses into Gains

Exit strategies for both covered call writing and selling cash-secured puts is one of the three required skills for maximizing investment returns. Whether we are mitigating losses, turning losses into gains or enhancing winning positions to even higher levels, we must have the capability to take advantage of all position management opportunities. In this week’s […]

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covered call writing exit strategies

Managing Covered Call Trades While Working A Full-Time Job

Covered call writing is a popular and potentially highly rewarding strategy geared to retail investors. But most blue collar investors work 9-5 jobs and managing investment positions can be challenging if no common sense plan is in place. The purpose of this article is to discuss ways that we can keep track of our positions […]

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Bullish covered call writing exit strategy

“Hitting a Double”- A Bullish Early-Contract Exit Strategy

Maximizing covered call writing returns requires the use of a series of exit strategies. One of the most common mistakes covered call writers are guilty of is not managing trades during the contract cycle. I was guilty as charged when I first started using this great strategy and learned my lessons the hard way. I […]

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