Apr 8, 2017 | Investment Basics, Option Trading Basics, Stock Investing, Stock Option Strategies
Whether we are selling covered calls or cash-secured puts we frequently look to our broker platforms for ways of enhancing our trading success. As these platforms become more sophisticated and competitive, there are a myriad of software analytical programs offered...
Feb 25, 2017 | Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
Covered call writing is a conservative strategy for cautious investors. We want the higher than risk-free returns with the least amount of risk. One question that does come up in this regard is why not enter a short-term trade that offers impressive returns? To get an...
Sep 10, 2016 | Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
Understanding option calculations is a necessary skill to become an elite covered call writer. The Ellman Calculator will do all the legwork but accurate and meaningful results are dependent on appropriate inputs. To highlight this point, let’s look at a...
Mar 26, 2016 | Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies, Technical Analysis
When selecting stocks and options for covered call writing and put-selling we factor in volatility, both implied and historical. Historical Volatility (HV) is the actual volatility of a security over a given time period. HV is calculated by determining the average...
Dec 26, 2015 | Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
Covered call writers and put-sellers know that option value is impacted by the change in stock price by the amount of its Delta. Delta, one of the option Greeks, is defined as the amount an option value will change for every $1.00 change in share value. If a call...
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