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Tag Archives: delta
option-selling factors of Theta, Vega and Delta

Greeks Spreadsheet Showing the Impact of Time to Expiration, Volatility and Stock Price Change on Option Value

Covered call writing and selling cash-secured puts involve both buying and selling of call and put options. We are dealing with two types of options as well as utilizing both […]

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Greeks and covered call writing

Delta and Theta and their Impact on our Covered Call and Put-Selling Positions

The Greeks play a major role in both covered call writing and selling cash-secured puts. Understanding these factors and tailoring our strategy based on this insight will allow us to […]

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Option Greeks

Why Would Call Option Value Decline If Stock Price Rises? Evaluating Option Greeks

Covered call writers and put-sellers know that option value is impacted by the change in stock price by the amount of its Delta. Delta, one of the option Greeks, is […]

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beta and covered call writing

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 […]

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Factors that impact option pricing

Calculating the Greeks Using an Options Calculator

The Greeks are a mathematical means of estimating the risk of stock options. Delta measures the change in the option price due to a change in the stock price, Gamma […]

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covered call writing and dividend capture

Covered Call Writing And Dividend Capture: Evaluating A Proposed Strategy

Capturing dividends using covered call writing has been a topic on great interest lately. I recently wrote an extensive white paper on this topic located in the “resources/downloads” section of […]

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Delta rises as strikes go deeper in-the-money

Delta And The Moneyness of Options

Understanding and mastering the Greeks are key factors in becoming an elite covered call writer and put-seller. In this article, I will focus on delta, one of the important Greeks, […]

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Covered call writing calculations

Calculating Future Returns Using Delta

Understanding option calculations is an integral part of the BCI methodology. Using the Ellman Calculators (Basic and Elite versions) will facilitate the process but knowing the “how” and “why” of […]

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covered call writing and option value

Am I Losing Money When Option Value Increases After Entering A Covered Call Position?

The risk in covered call writing is in the stock purchased not in the option sold. Sound familiar? It’s in all my books and DVD Programs and mentioned in my […]

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Using LEAPS to increase dividend yield

Using LEAPS Covered Calls to Increase Dividend Yield

Innovative covered call writers can develop ideas of implementing a strategy in unconventional ways. For example, we can invest in a money market or CD and perhaps not even beat the […]

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