Jun 10, 2017 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
In our BCI methodology we favor Monthly or Weekly options for our short covered call writing positions. I am frequently asked why I don’t utilize LEAPS options (expire 9 – 24 months in the future) to garner a much higher premium and perhaps require less...
Oct 1, 2016 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Stock Option Strategies
Covered call writing involves first buying a stock or exchange-traded fund (ETF) and then selling call options on those shares. Each contract we sell requires us to buy 100 shares of the underlying. This can be a challenge for some investors who may look for stock...
Nov 14, 2015 | Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
LEAPS are long-term options that have expiration dates between nine months and two and a half years out. The term is an acronym for Long Term Equity AnticiPation Securities. Once the expiration date is less than nine months away, LEAPS convert to conventional options....
Oct 31, 2015 | Option Trading Basics, Options Calculations, Stock Option Strategies
A covered call writing-like strategy involves buying deep in-the-money LEAPS options and then selling short-term slightly out-of-the-money call options. Leaps become a stock surrogate. The term Leaps stands for Long Term Equity AnticiPation Security. They have...
May 3, 2014 | Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
LEAPS are long-term options with expirations usually greater than 1 year. Some investors buy LEAPS instead of stocks to then write covered calls on this leveraged type of security. This is related to, but not recisely the same, as traditional covered call writing. The...
Podcast