Feb 10, 2018 | Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
One of the common mistakes made by covered call writers and put-sellers is to make investment decisions based primarily on the highest premium returns. Certainly, we all want to generate the highest levels of success but only when factoring in the risk we will be...
Sep 2, 2017 | Exchange-Traded Funds, Investment Basics, Option Trading Basics, paper trading, Stock Option Strategies
Using covered call writing and exchange-traded funds (ETFs) is a viable approach to generating monthly cash flow. I personally use this strategy in my mother’s portfolio. Can this investment style be expanded to include inverse ETFs to move this expanded path to...
Oct 22, 2016 | Exchange-Traded Funds, Investment Basics, Option Trading Basics, Stock Option Strategies
Covered call writing results can be enhanced through the use of leveraged ETFs and margin accounts. However, so too is the risk elevated. In this article, the pros and cons of these strategies are examined. Definitions Leveraged ETF: An exchange-traded fund...
Oct 15, 2016 | Exchange-Traded Funds, Investment Basics, Option Trading Basics, Stock Option Strategies
Never write a covered call or sell a cash-secured put when there is an upcoming earnings report prior to contract expiration. This is one of the most important rules in the BCI methodology. Adhering to this guideline can create challenges during the heart of earnings...
Jan 17, 2015 | Exchange-Traded Funds, Investment Basics, Option Trading Basics, Stock Option Strategies
For the strategies of covered call writing and selling cash-secured puts, we are selling the right, but not the obligation, to buy or sell 100 shares of the underlying security. That security can be a stock or and exchange-traded fund (ETF). In this article, I will...
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