May 23, 2020 | Investment Basics, Option Trading Basics, Stock Investing, Stock Option Strategies
Covered call writing education must include debunking the myths associated with this strategy. When certain concepts are repeated often enough, they become accepted as truths whether they are accurate or false. The purpose of this article is to refute five of the most...
Nov 23, 2019 | Investment Basics, Option Trading Basics, Options Calculations, Put-selling, Stock Option Strategies
The exchange-traded fund (ETF) that has appeared most frequently in our premium member ETF reports is Invesco QQQ Trust (NASDAQ: QQQ). This fund consists of 100 of the largest non-financial companies (predominantly technology companies) that trade on the NASDAQ...
Oct 26, 2019 | Exchange-Traded Funds, Investment Basics, Option Trading Basics, Options Calculations
Implied volatility (IV) is directly related to the value of the premiums we receive when selling covered call and put options. The more volatile the underlying security, the greater the premium and risk exposure. I have written quite a bit about IV over the years and...
Aug 17, 2019 | Investment Basics, Option Trading Basics, Stock Investing, Stock Option Strategies
Options trading basics teaches us that the VIX or CBOE Volatility Index reflects the market’s expectation of the upcoming 30-day volatility. It measures market risk and is also known as the investor fear gauge. With this in mind, covered call writers are faced with a...
Jul 6, 2019 | Covered Call Exit Strategies, Exit Strategies, Fundamental Analysis, Investment Basics, Option Trading Basics, Stock Option Strategies
Covered call writing (as well as put-selling) premiums are directly related to the implied volatility of the underlying stock or exchange-traded fund (ETF). Biotech stocks are particularly volatile due to the success (or lack thereof) of the pharmaceuticals they are...
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