Covered call writing and put-selling can be used in most market conditions including bear markets. In my books and DVDs, I detail the use of in-the-money call options (strikes lower than current market value), out-of-the-money put options (also lower than current market value) and securities with low-implied volatility like exchange-traded funds (ETFs). In this article […]
Percentage Of Options Expiring Worthless: Debunking A Myth
“Selling covered call options and cash-secured puts is a smarter strategy than buying options because 90% of options expire worthless“. We’ve all heard this argument but never from me because it is simply not accurate. The reason so many venues present this statement as truth is because only 10% of option contracts are exercised. That is true. […]
Evaluating Returns When Rolling Out And Up
Covered call writing and put-selling calculations must be accurate and preferably understood by option-sellers. I created the Ellman Calculators to facilitate the authentic computations we depend on. In this article, I will review a successful trade executed by one of our members, David L, who used UTHR from our Premium Running list as the underlying […]
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Cash-Secured Call Options
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Ask Alan #159 Rolling Down When Share Price Moves Up: A Valid Strategy?
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Let’s Take a Test: Can You Answer Correctly?
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Stock Repair Strategy: Breakeven Versus Loss-Reduction Objectives
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“Hitting a Double” or “Mid-Contract Unwind Exit Strategy”: Which Exit Strategy Did I Just Use?
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The New Stock Market- Algorithmic and High Speed Trading
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Options That Expire Weekly and Conventional Expiration Cycles
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Why the 3% Guideline Applies to Puts but Not to Call Options
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Earnings Pre-Announcements Explained and Categorized
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Tax Implications of Writing Covered Calls against Long-Term Holdings
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Alan Ellman Premium members: This week's 8-page report
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Jay One add to Mario's comments is if you trade o
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Mariog One other point... regarding exercise. If you h
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