May 5, 2012 | Option Trading Basics, Options Calculations, Stock Option Strategies
In the BCI methodology for covered call writing we use predominantly 1-month options. There are times, however, where we find cash in our accounts (mid-contract) that is inactive. This may be due to closing a position early either because the share price declined...
Jan 28, 2012 | Stock Option Strategies
So you sold an options contract for $380 and generated a 3.5% 1-month return. Did you ever wonder how the market determined the value of that options contract to be $380? The simple equation that most of us know and understand is the following: Option premium =...
Jan 10, 2010 | Options Trade Execution
When David did battle with Goliath, he used the leverage of his slingshot to overcome overwhelming odds. In much the same way we, as Blue Collar Investors, must use every tool available to us to level the playing field with the market makers and specialists who are...