When covered call writing is combined with protective puts the strategy is known as the collar strategy. The short call places a ceiling on gains and the long put represents […]
Exercise Of Options From The Call Buyer’s Perspective
Since we are selling call and put options we know there are traders or market makers who are buying them. In this article we will explore why only about 10% […]
Using Delta to Determine the Amount of Risk in Our Option-Selling Positions
Covered call writing and selling cash-secured puts are low-risk option-selling strategies used to generate monthly cash flow. Low-risk does not mean no risk so how can we measure the degree […]
Delta Defined from Three Perspectives
Delta, one of the major Greeks, correlates the relationship between stock price and option value. Option traders use the Greeks to evaluate the risk inherent in our positions and Delta is […]
What is Beta-Weighting?
What is the impact on the overall market on our covered call writing and put-selling positions? We know that market movement plays a major role in our stock and options […]
“Pinning the Strike”: A Covered Call Writing Consideration
When considering covered call exit strategies on or near expiration Friday we compare the market price of our stock to the strike price sold. If the share value is even […]
Podcast
- 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
- 104. Special 1 Time Dividends and Contract Adjustments
- 103. The Collar Strategy Using Long-Term Put Expirations
- 102. Analyzing Market Assessment Based on Portfolio Setup
Recent Comments