Jun 6, 2015 | Investment Basics, Option Trading Basics, Options Calculations, Put-selling, Stock Option Strategies
When studying covered call and put-selling option prices we learn that the market will correct any potential arbitrage opportunities. Arbitrage is the simultaneous purchase and sale of an option in order to profit from a difference in the price. It exploits price...
May 30, 2015 | Investment Basics, Option Trading Basics, Options Calculations, Stock Investing, Stock Option Strategies
Mastering both conservative option selling strategies, covered call writing and put-selling will allow us to maneuver our way through most market situations. This past Wednesday, May 27, 2015 several of the stocks on our BCI Premium Watch List gapped up. On last...
Apr 4, 2015 | Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Investing, Stock Option Strategies
Selling cash-secured puts is a strategy with goals of creating monthly cash flow while retaining capital preservation as a priority. However, many of our astute members are also using this strategy to purchase a stock “at a discount” instead of setting up...
Mar 7, 2015 | Investment Basics, Option Trading Basics, Stock Option Strategies
Stocks eligible for our covered call writing and put-selling portfolios are screened in a 3-pronged approach: fundamental analysis, technical analysis and “common sense principles” like avoiding earnings reports. One of the categories under the common...
Jan 10, 2015 | Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
Can we use covered call writing and selling cash-secured puts to generate profits when share price declines by 10% in two months in a bear or volatile market environment? I am writing this article on January 5th, 2015, the worst day the market has experienced in over...
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