Covered call writing and put-selling can be used in most market conditions including bear markets. In my books and DVDs, I detail the use of in-the-money call options (strikes lower than current market value), out-of-the-money put options (also lower than current market value) and securities with low-implied volatility like exchange-traded funds (ETFs). In this article […]
ASHR: Exchange-Traded Fund in the Spotlight
Exchange-traded funds (ETFs) offer covered call writers and put-sellers the advantage of instant diversification and generally have a lower implied volatility associated with them compared to individual stocks. Whether we are dealing with stocks or ETFs each security must be evaluated on its own merit before using it as the underlying security. In this article, […]
Implied Volatility of ETFs and our Covered Call Writing and Put-Selling Decisions
Covered call writers or cash-secured put sellers who use ETFs (as opposed to individual stocks) tend to be novice put writers, more conservative investors, or have limited funds or time. If you fall into any of these categories, knowing your risk level is critical to your investment decisions and specifically, to which underlying securities you […]
Index Options And Exchange-Traded Funds Options: A Comparison
Writers of covered calls and cash-secured puts use stocks or exchange-traded funds as the underlying securities. It is the value of these securities that give value to our option premiums. For example, we will buy back an option when share price moves down causing the corresponding option to decline in value as well. We may […]
Exchange Traded Funds (ETFs) and Covered Call Writing
Would you like a quick, easy, inexpensive and still safe way to invest with covered call writing? If so, why not consider using exchange traded funds? In chapter 14 of my first book, Cashing in on Covered Calls, I discuss diversification and dollar cost averaging as an investment strategy and how that approach can be utilized when […]
WHEN TO BUY BACK YOUR OPTION – EXPIRATION FRIDAY DILEMMA plus Industry in the Spotlight
Picture this: It’s on or near Expiration Friday and your stock or ETF (Exchange Traded Fund) is above the strike price. You know that if you do not act to institute an Expiration Friday Exit Strategy your stock will be assigned (sold). So what are the factors that will determine whether or not you buy back […]
Podcast
- 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
- 101. Covered Call Writing: "Hitting a Double" on the Last day of a Contract
- 100. Analyzing LEAPS for The Poor Man's Covered call Strategy (PMCC)
- 99. Anatomy of a Reverse Stock Split
- 98. Analyzing LEAPS Options for the Poor Man's Covered Call
- 97. Managing Our Poor Man's Covered Call Trades When Share Price Drops Substantially
- 96. Protecting Our Covered Call Trades: Protective Puts and In-the-Money Strikes
- 95. Covered Call Writing to Generate Premium and Dividend Income
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