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Tag Archives: greeks
The Greeks and covered call writing

How To Use Implied Volatility In Our Covered Call Writing Decisions

Understanding the Greeks, or factors that impact the value of our covered call premiums, is essential to mastering options trading basics and becoming an elite covered call writer. One of […]

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interest rates and option premiums for covered call writing and put-selling

RHO: Why Interest Rates Effect Our Option Premiums

Interest rates and the option Greeks play an important role in understanding option trading basics. Rho, not considered a major Greek, measures the change in an option’s price resulting from […]

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covered call writing and option value

Am I Losing Money When Option Value Increases After Entering A Covered Call Position?

The risk in covered call writing is in the stock purchased not in the option sold. Sound familiar? It’s in all my books and DVD Programs and mentioned in my […]

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Implied volatility differences between strikes and expirations

Vega: An Option Greek And How It Impacts Our Option Pemiums

Covered call writing generates monthly cash flow by selling short-term options. The main factor in determining the amount of this premium is the implied volatility (IV) of the underlying security. The […]

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Delta rises as strikes go deeper in-the-money

Delta and Our Covered Call Writing Decisions

When studying option trading basics and the Greeks we learn about our exposure to risk. Those of us who study options are constantly reading and hearing that delta, one of the Greeks, is […]

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Greeks: Factors that Influence our Covered Call Premiums

We have all heard the term “the Greeks” as it applies to stock options. Most of us know that these factors somehow explain how certain parameters can impact the value of […]

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Beta: Another Tool to Enhance our Covered Call Returns

When we defined the Greeks in a previous article concerning investment basics, it included a discussion of the price sensitivity of the option premium as it relates to the underlying equity, time and […]

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Theta-Time Decay of our Option Premiums

Educated covered call writers know that it is critical to sell our options early in the 1-month cycle. I always try to sell my options in the first week of […]

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