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Tag Archives: Exchange-traded funds
Covered call writing and The Blue Cololar Investor Premium ETF Report

Implied Volatility And Our Premium Exchange-Traded Funds (ETF) Report

Our study of option trading basics and stock option strategies involves an analysis of implied volatility. This is the market’s forecast of the underlying security’s volatility as implied by the option’s price in the market place. Frequently, the mid-point of the bid-ask spread, called the mark, is used. In this article, I am highlighting a […]

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Covered call writing with ETFs

Exchange-Traded Funds: How They Operate: The Pros And The Cons

Covered call writers can use individual stocks or exchange-traded funds as the underlying securities. Each has its own set of advantages and disadvantages. In this article we will explore the mechanism behind ETFs and evaluate the pros and cons of incorporating them into our covered call writing portfolios. When we buy one share of the Qs […]

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Covered call writing index

Covered Call Writing and Exchange-Traded Funds

A critical requirement of my covered call writing system is to be properly diversified by stock, industry and cash allocation. No one stock or industry should represent more than 20% of your portfolio holdings. Owning five different stocks in five different industries would require you to own at least 500 shares since each options contract […]

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Constructing a Covered Call Portfolio Using Select Sector SPDRS

Select Sector SPDRs are unique exchange-traded funds that divide the S&P 500 into nine sector index funds.  They have the diversity of a mutual fund, the focus of a sector fund, and the tradability of a stock. Together, the nine Select Sector SPDRs represent the S&P 500 as a whole. However, each Select Sector SPDR can also […]

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