Jan 27, 2018 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
After entering our covered call writing trades, we immediately go into position management mode. For most of us who started our stock investment careers buying and selling stock, this may include setting stop loss orders to mitigate losses when share price declines....
Nov 9, 2013 | Investment Basics, Option Trading Basics, Options Trade Execution, Stock Option Strategies
Our covered call writing strategy involves both buying and selling options. Mastering our options trade executions can bring our profit level to even higher levels. We know that a general rule is that we buy at the “bid” (the lower figure) and sell at the...
Aug 31, 2013 | Covered Call Exit Strategies, Investment Basics, Option Trading Basics, Options Trade Execution, Stock Option Strategies
Successful covered call writing requires the appropriate use of exit strategies to mitigate losses and enhance gains. In today’s article, we will focus on actions that can be taken when a stock price declines and capital preservation becomes a concern. Once we...
Aug 24, 2013 | Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution
Executing a covered call trade and understanding the accounting procedures on our online discount broker statements can be confusing to the new option trader. I have recently received a few emails regarding this topic so I thought it would be useful to show an actual...
Jun 30, 2012 | Investment Basics, Options Trade Execution
Executing our stock and call option trades is fast and efficient. But what actually goes on behind the scenes after we enter market or limit orders? Once we type our order to the online discount broker there are a series of events that take place terminating in the...
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