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Tag Archives: “playing the bid-ask spread

BCI Podcast 3. Converting Non Dividend Stocks to Dividend Stocks

Watch Video: Listen To Audio Version: How to convert stocks that don’t generate dividends into dividend-like securities by writing 4 covered call trades per year. The strategy can also be used to enhance the dividends already generated by the stock. BECOME A BCI MEMBER TODAY: PREMIUM MEMBERSHIP SEE BCI COURSE & PRODUCTS : BCI STORE  […]

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option liquidity

What Is Slippage And How Does It Impact Our Trading Success?

When studying investment basics, the term slippage has two applications. In general, it means having a trade executed at a price less favorable to the trader. Let’s look at the two areas where we may see this term used:  An order is executed at a worse-than-expected price  Stock and options  Slippage occurs when there is […]

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Covered Call Trade Execution

Executing Covered Call Trades: The Buy-Write Combination Form.

There are two ways to enter a covered call position. The first is called legging-in where the stock is purchased and then the option is sold. Two distinct trades are executed. The second is known as a buy-write order where the security purchase and option sale is entered as one trade with a net debit […]

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