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%. […]
Using Covered Call Options and Stock Dividends in Low-Interest Rate Environments
Posted on January 2, 2021 by Alan Ellman in Covered Call Exit Strategies, Fundamental Analysis, Investment Basics, Option Trading Basics, Options Calculations, Stock Investing, Stock Option Strategies
Covered Call Writing with TLT: Generating Premium and Dividend Income
Posted on October 31, 2020 by Alan Ellman in Exchange-Traded Funds, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
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 […]
Combining In-The-Money Strikes and Stock Dividends to Provide Protection in Bear Markets + Holiday Discounts
Posted on December 7, 2019 by Alan Ellman in Fundamental Analysis, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Investing, Stock Option Strategies
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 […]
Early Exercise Due to Dividend Capture: Theoretical and Practical Applications
Posted on August 25, 2018 by Alan Ellman in Exit Strategies, Investment Basics, Option Trading Basics, Stock Option Strategies
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 […]
Is There Less Risk Using Deep In-The-Money Long Calls versus Covered Call Writing?
Posted on July 21, 2018 by Alan Ellman in Exit Strategies, Investment Basics, Option Trading Basics, Stock Option Strategies
“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 […]
American Depository Receipts and Special 1-Time Cash Dividends/ Discount Coupons for New Book & Calculators
Posted on June 30, 2018 by Alan Ellman in Investment Basics, Option Trading Basics, Options Calculations, Stock Investing, Stock Option Strategies
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 […]
Combining Dividend Capture with Covered Call Writing: Pros and Cons
Posted on June 16, 2018 by Alan Ellman in Fundamental Analysis, Investment Basics, Option Trading Basics, Stock Investing, Stock Option Strategies
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 […]
Arbitrage: Part II
Posted on December 23, 2017 by Alan Ellman in Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Put-selling, Stock Option Strategies
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 […]
Should Ex-Dividend Dates Be Treated the Same as Earnings Report Dates?
Posted on December 9, 2017 by Alan Ellman in Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Stock Option Strategies
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 […]
Executing Trades Based on Ex-Dividend Dates
Posted on November 4, 2017 by Alan Ellman in Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
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 […]
Podcast
- BCI PODCAST 121: What is a SPAC (Special Purpose Acquisition Company)?
- 120. Using the Nasdaq-100 Volatility Index (VOLQ) in Covered Call Writing Decisions
- 119. Establishing Our Cost-Basis for Long-Term Holdings
- 118. Adjusting Our Portfolio Mix to Achieve Diversification and Cash Allocation
- 117. When a Covered Call Strike Moves $1000.00 In-The-Money
- 116. How to Execute a Covered Call Trade with a Buy/Write Combination Form
- 115. Establishing Our Cost Basis When Rolling-Out-And-Up On 2 Different Days
- 114. The Poor Man's Covered Call Selecting the Best LEAPS Strikes
- 113. How to Select the Best Strikes for Collar Trades
- 112. Using Covered call Options and Stock Dividends in Low Interest Rate Environments
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