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exit strategies for covered call writing

“Hitting a Double” Using a Lower Strike Price

One of the exit strategies for covered call writing that allows us to enhance portfolio returns is known in the BCI community as “hitting a double”. We implement this position management technique when option value meets our 20%/10% guidelines. The initial short call is closed (buy-to-close) as share value declines early to mid-contract and then […]

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stop losses for covered call writing

Setting Stop Loss Orders for Covered Call Writing

After entering our covered call writing trades, we immediately go into position management mode. For most of us who started our stock investment careers buying and selling stock, this may include setting stop loss orders to mitigate losses when share price declines. For example, if we purchase a stock at $40.00, we may set a […]

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Covered call writing exit strategies

Real Life Covered Call Trade With PRLB

Part of our covered call writing education involves looking back on both successful and unsuccessful trades and learning from them. A few months ago I shared with a premium member a trade I had executed the previous month and saved it (I have a collection of dozens of email responses for future blog articles or […]

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Bullish covered call writing exit strategy

“Hitting a Double”- A Bullish Early-Contract Exit Strategy

Maximizing covered call writing returns requires the use of a series of exit strategies. One of the most common mistakes covered call writers are guilty of is not managing trades during the contract cycle. I was guilty as charged when I first started using this great strategy and learned my lessons the hard way. I […]

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Covered Call Writing and Holding a Stock Through an Earnings Report

With expiration Friday and earnings season fast approaching our common sense principles (see chapter 8 of my latest book) become even more important. Never sell a covered call option with an upcoming earnings report is a critical BCI rule. But what if  you own a stock and love it!  Hopefully, your admiration for the stock […]

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