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covered call writing and earnings reports

Managing Earnings Reports on Long-Term Holdings

Never sell a covered call or put option when there is an earnings report due to be reported prior to contract expiration. I have repeated this rule so many times over the years because I want our members to avoid the losses I incurred back in the 1990s before I realized how important it was […]

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Option Greeks

Why Would Call Option Value Decline If Stock Price Rises? Evaluating Option Greeks

Covered call writers and put-sellers know that option value is impacted by the change in stock price by the amount of its Delta. Delta, one of the option Greeks, is defined as the amount an option value will change for every $1.00 change in share value. If a call option priced at $2.00 with a […]

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