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The Collar Strategy from a Delta Perspective

When covered call writing is combined with protective puts the strategy is known as the collar strategy. The short call places a ceiling on gains and the long put represents […]

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calculating Delta for covered call writing

Using Delta to Determine the Amount of Risk in Our Option-Selling Positions

Covered call writing and selling cash-secured puts are low-risk option-selling strategies used to generate monthly cash flow. Low-risk does not mean no risk so how can we measure the degree […]

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Beta: Another Tool to Enhance our Covered Call Returns

When we defined the Greeks in a previous article concerning investment basics, it included a discussion of the price sensitivity of the option premium as it relates to the underlying equity, time and […]

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