Aug 17, 2013 | Investment Basics, Option Trading Basics, Stock Investing, Stock Option Strategies
I’ve been writing covered calls since the 1990s. None of my friends or relatives ever heard of this strategy and no one I knew was using it. Back then, there were very few books on the subject and average retail investors had little or no interest in learning...
Apr 20, 2013 | Covered Call Exit Strategies, Options Calculations, Options Trade Execution, Stock Option Strategies
I recently learned that covered call writing comes in all shapes and sizes. Although we are honored to have a significant number of international members, most trade US stocks on US exchanges with the rules we are familiar with. But what if the rules were different?...
Mar 2, 2013 | Option Trading Basics, Options Calculations, Stock Option Strategies
There is a new options product that will begin trading on March 18th which has the potential to add great flexibility to our covered call writing strategy. They are called mini options and I’m excited to present this information to you because the product is...
Sep 1, 2012 | Option Trading Basics
When studying option trading basics we learn that to be in a “covered” position we must first purchase the stock before selling the option for the strategy of covered call writing. Some investors will execute both parts of the trade by using a buy-write...
Dec 24, 2011 | Fundamental Analysis
Every once in a while, when using our covered call writing strategy a stock will gap up or down. A gap is a break between prices on a chart that occurs when the price of a stock makes a sharp move up or down with no trading occurring in between. Gaps can be created...