Meaningful option calculations are essential in determining if the premiums meet our covered call writing goals. To this end, we must understand the mathematics of these calculations to become elite […]

In-The-Money Covered Calls: Intrinsic Value Protects Time Value: A Real-Life Example with TEAM + New Tool Coming Soon
Posted on June 29, 2019 by Alan Ellman in Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies

In-The-Money Call Strikes: Intrinsic Value Protects Time Value
Posted on May 19, 2018 by Alan Ellman in Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
Strike price selection is one of the 3 required skills for covered call writing and put-selling. When we sell in-the-money call options we are protecting our positions to the downside […]

Why Would a Call Buyer Exercise, Rather than Sell, an In-The-Money Call Option?
Posted on September 9, 2017 by Alan Ellman in Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations
When we write a covered call, there is a trader or market-maker buying that call on the other side of the trade. We know that as expiration approaches, the time […]

When is it Appropriate to Use Covered Call Writing? A New Perspective
Posted on May 7, 2016 by Alan Ellman in Investment Basics, Option Trading Basics, Stock Option Strategies
Covered call writing is applicable only in neutral to slightly bullish market environments”. We’ve heard this proclamation time and time again and so it has become accepted as fact to […]

Covered Call Writing When There Is Overall Market Concern
Posted on May 17, 2014 by Alan Ellman in Exchange-Traded Funds, Investment Basics, Option Trading Basics, Stock Option Strategies
Covered call writing is a stock option strategy with primary goals of income generation and capital preservation. Most of us are conservative investors who use the power of education to […]

When And Why Will My In-The-Money Strike Be Exercised?
Posted on September 7, 2013 by Alan Ellman in Covered Call Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
Covered call writers receive option premiums for undertaking the obligation to sell our shares to the option holder if that holder decides to exercise that right. Understanding when and why […]

In-The-Money Strikes and Covered Call Writing
Posted on August 11, 2012 by Alan Ellman in Option Trading Basics, Options Calculations
Option trading basics incorporates fundamental, technical and common sense decisions. One of these, as it relates to covered call writing, is selecting a strike price for the short options position. […]
Podcast
- 114. The Poor Man's Covered Call Selecting the Best LEAPS Strikes
- 113. How to Select the Best Strikes for Collar Trades
- 112. Using Covered call Options and Stock Dividends in Low Interest Rate Environments
- 111. Rolling Down on a Sharp Market Decline at the end of a Contract
- 110. Exit Strategies Are Important But Must Be Timed Properly
- 109. Delta and Strike Selection for Covered call Writing
- 108. Establishing Our Cost Basis in a Multi Step Managed Trade
- 107: Even and Odd Stock Splits Understanding Contract Adjustments
- 106. "Hitting a Double" with Procter & Gamble: A Covered Call Writing Exit Strategy
- 105. The Poor Man's Covered Call: Rolling Options
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Beginners Corner Selling-Puts
- Lesson 1: What Is Puts Selling?
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- Lesson 5:puts-selling-Calculating Returns
- Lesson 6:puts-selling-Executing Put-Selling
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