Understanding stock and option pricing requires an awareness of arbitrage and market efficiency. Although most retail investors do not have the tools to take advantage of arbitrage opportunities, a comprehensive understanding of […]
Executing Exit Strategies in a Timely Manner
After executing our covered call writing trades, we immediately prepare for position management opportunities…exit strategies. One of these strategies in our arsenal is the Mid Contract Unwind exit strategy. This […]
Why do Call Buyers Exercise Early Prior to the Ex-Dividend Date?
Covered call writers know that early exercise is extremely rare. Call buyers are generally better off selling the option rather than exercising early. In this article we will evaluate why […]
Covered Call Writing And Dividend Capture: Evaluating A Proposed Strategy
Capturing dividends using covered call writing has been a topic on great interest lately. I recently wrote an extensive white paper on this topic located in the “resources/downloads” section of […]
RHO: Why Interest Rates Effect Our Option Premiums
Interest rates and the option Greeks play an important role in understanding option trading basics. Rho, not considered a major Greek, measures the change in an option’s price resulting from […]
Closing Our Entire Covered Call Position When Share Price Rises: The Mid-Contract Unwind Exit Strategy
Exit strategies or position management is one of the three major components of this strategy we must master to become elite covered call writers. The other two are stock (or ETF) […]
Examining A Covered Call Trade
Mastering covered call writing requires us to learn from our mistakes and not repeating them. We can then utilize a series of guidelines and rules that will guide us to […]
Using Multiple Exit Strategies in the Same Contract Month
Covered call writers can be good at what they do or great at it. They can generate decent returns or the highest possible returns. One of the mission statements of The […]
Mid-Contract Unwind Exit Strategy: A Real Life Example
To maximize our covered call writing profits it is critical to take advantage of our exit strategy opportunities. Last week I posted a few comments regarding the mid-contract unwind exit […]
Bernie Madoff Revisited
Oh no, not another Bernie article! Sorry folks, I couldn’t resist. I have such an interest in this story on so many levels. Madoff was claiming to use a strategy related to […]
Podcast
- 114. The Poor Man's Covered Call Selecting the Best LEAPS Strikes
- 113. How to Select the Best Strikes for Collar Trades
- 112. Using Covered call Options and Stock Dividends in Low Interest Rate Environments
- 111. Rolling Down on a Sharp Market Decline at the end of a Contract
- 110. Exit Strategies Are Important But Must Be Timed Properly
- 109. Delta and Strike Selection for Covered call Writing
- 108. Establishing Our Cost Basis in a Multi Step Managed Trade
- 107: Even and Odd Stock Splits Understanding Contract Adjustments
- 106. "Hitting a Double" with Procter & Gamble: A Covered Call Writing Exit Strategy
- 105. The Poor Man's Covered Call: Rolling Options
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