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 a floor protecting losses. The two option positions should result in a net credit. Typically, out-of-the-money calls and puts are selected. Covered call writing and […]

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 selections as well as our position management choices. In today’s article we will discuss a means of actually measuring the specific sensitivity of our individual […]

“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 one penny above the strike, the option will most likely be exercised and our shares sold. We may not want this to occur and we […]
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