Jun 17, 2017 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Stock Investing, Stock Option Strategies
Never sell a covered call option or cash-secured put if there is an earnings report due out prior to contract expiration. This is one of the golden rules of the BCI methodology. We know that a report that disappoints generally did not meet market consensus regarding...
Jun 3, 2017 | Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies, Technical Analysis
When selling covered call or put options, strike price selection is one of the three required skills. Here are the main factors we evaluate when determining which strike price to select: Overall market assessment Personal risk tolerance Return goals Technical price...
May 27, 2017 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Put-selling, Stock Option Strategies
A covered call trade can be initiated by first purchasing the underlying stock or exchange-traded fund (ETF). It can also be launched by first selling an out-of-the-money (OTM) cash-secured put and allowing exercise if the put strike is in-the-money (ITM) at...
Mar 4, 2017 | Investment Basics, Option Trading Basics, Options Calculations
Covered call writing and selling cash-secured puts are strategies that can be crafted to meet the personal risk tolerance of all investors. I use stocks selected from our premium watch lists in my accounts and from the ETF Reports in my mother’s account....
Feb 25, 2017 | Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
Covered call writing is a conservative strategy for cautious investors. We want the higher than risk-free returns with the least amount of risk. One question that does come up in this regard is why not enter a short-term trade that offers impressive returns? To get an...