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Tag Archives: Rolling Out and Up

BCI PODCAST 100: Analyzing LEAPS for The Poor Man’s Covered call Strategy (PMCC)

Watch Video: Listen To Audio Version: The PMCC allows investors to enter a covered call at a much lower cost than traditional covered call writing. There are pros and cons […]

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Rolling Out-And-Up: 6-Week Returns

Option calculations help guide us to an accurate assessment of our covered call writing profits. It’s more meaningful to use percentages rather than dollar amounts when executing these calculations. For […]

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Rolling Decisions on Expiration Friday: A Real-Life Example with Veeva Systems

Position management is the 3rd required skill for our covered call writing and put-selling success. On 7/19/2019, Larry shared with me a series of trades he executed with Veeva Systems […]

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covered call writing exit strategies

Evaluating Stock Purchase Price and Breakeven When Rolling Out-And-Up

When we write a covered call, our breakeven is stock purchase price – entire call premium. If we buy a stock for $48.00 and sell an option for $2.50, the […]

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Rolling Up in the Same Contract Month: A Real-Life Example with KMX

Position management or exit strategies for covered call writing and selling puts is the third required skill to achieve the highest possible return levels (stock and option selection are the […]

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covered call writing calculations

Rolling Out-And-Up: Explaining “Bought-Up” Value

Covered call writing calculations should be as accurate as possible so that we can assess the success and feasibility of our trades. When we roll in-the-money (ITM) options out-and-up there […]

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covered call writing exit strategies

Understanding the “Paid-Up” Risk When Rolling Out-And-Up: A Real-Life Example with FIVE

One of our covered call writing exit strategies when the strike is in-the-money on expiration Friday is rolling out-and-up. This is when we buy back the near-month call (buy-to-close) and […]

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Rolling Out-And-Up And Then Stock Price Declines

Rolling our covered call trades involves multiple months of trading statistics. The calculations may be deceiving initially but on deeper analysis, rolling our options can represent an invaluable trading tool […]

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covered call writing exit strategies

Rolling Out-And-Up: Explaining the “Bought-Up” Value of our Stocks

One of our covered call writing exit strategies is rolling out-and-up. This involves buying back (buy-to-close) the current in-the-money option and selling the later-date higher strike price. For example, we […]

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covered call writing exit strategies

Rolling Option Considerations: A Real-Life Example with BEAT

Exit Strategies for covered call writing is the third required skill for successful implementation of this strategy (stock selection and option selection are the first two). This is also known […]

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