Covered call writing involves a minimum of 2 legs: we are long the stock (own the stock) and short the option (sold the option). There are many times when we […]
Position Management in the Final Week of a Contract: A Real-Life Example with FIVE
Exit strategy preparation and implementation is one of the 3 required skills for successful covered call writing and put-selling. Because of the time value erosion of our options (Theta), there […]
Hitting a Double with News-Related Market Overreactions
Stock selection, option selection and position management are the 3 required skills for covered call writing and put-selling. One of our go-to exit strategies is “hitting a double” where we […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
Podcast
- 114. The Poor Man's Covered Call Selecting the Best LEAPS Strikes
- 113. How to Select the Best Strikes for Collar Trades
- 112. Using Covered call Options and Stock Dividends in Low Interest Rate Environments
- 111. Rolling Down on a Sharp Market Decline at the end of a Contract
- 110. Exit Strategies Are Important But Must Be Timed Properly
- 109. Delta and Strike Selection for Covered call Writing
- 108. Establishing Our Cost Basis in a Multi Step Managed Trade
- 107: Even and Odd Stock Splits Understanding Contract Adjustments
- 106. "Hitting a Double" with Procter & Gamble: A Covered Call Writing Exit Strategy
- 105. The Poor Man's Covered Call: Rolling Options
Recent Comments