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Tag Archives: ex-dividend date

Using Covered Call Options and Stock Dividends in Low-Interest Rate Environments

Covered call writing can be crafted to meet a myriad of goals in a wide range of market conditions. In May of 2020, the 10-year Treasury Bond yield was 0.65%. […]

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Covered Call Writing with TLT: Generating Premium and Dividend Income

The main goal of covered call writing is to generate option premium cash flow. Many investors also seek to develop dividend income in addition to the option premium revenue. One […]

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covered call writing trades

Combining In-The-Money Strikes and Stock Dividends to Provide Protection in Bear Markets + Holiday Discounts

When establishing our covered call writing trades, we must factor in current market conditions to either add protection in bear and volatile environments or to take advantage of normal to […]

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covered call writing and dividends

Early Exercise Due to Dividend Capture: Theoretical and Practical Applications

When we write a covered call option we are obligated to sell our shares at any time from the option sale to contract expiration if the option buyer decides to […]

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Is There Less Risk Using Deep In-The-Money Long Calls versus Covered Call Writing?

“There is less risk using deep in-the-money (ITM) long calls than buying stock and selling the corresponding short calls”. That is the case John made to me when I received […]

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American Depository Receipts and Special 1-Time Cash Dividends/ Discount Coupons for New Book & Calculators

When viewing option chains while crafting our covered call writing portfolios, from time-to-time we will see unusual strike prices. These anomalies are usually associated with various corporate events that result […]

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dividend capture and covered call writing

Combining Dividend Capture with Covered Call Writing: Pros and Cons

Why not use covered call writing with only dividend-bearing stocks to generate three income streams; option premium, share appreciation to the (out-of-the-money) call  strike plus the dividend itself? This article […]

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dividends and covered call writing

Arbitrage: Part II

In part I of this arbitrage series we defined arbitrage as the simultaneous purchase and sale of an asset to profit from a difference in the price. It is a […]

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covered call writing and earnings reports

Should Ex-Dividend Dates Be Treated the Same as Earnings Report Dates?

Covered call writers and put-sellers must be aware of earnings report dates and ex-dividend dates but for different reasons. A golden rule in the BCI methodology is never to sell […]

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Theta and covered call writing

Executing Trades Based on Ex-Dividend Dates

Early assignment of our covered call positions is rare but possible. When it does occur, it is frequently related to an ex-dividend date. These are dates that we must own […]

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