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Tag Archives: Rolling Out
covered call writing calculations

Covered Call Writing Quiz: Evaluating a Series of Trades

Managing our covered call positions is essential to our overall option-trading success. In July 2019, KA Lau shared with me a series of questions he developed based on a real-life […]

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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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stock selection for covered call writing

Protecting Unrealized Profits When Share Price Accelerates

Covered call writing dilemmas can frequently result from positive circumstances. In August 2017, Vincent shared a trade he executed where an out-of-the-money strike was sold and share price had moved […]

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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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calculating covered call writing returns

20%/10% Guidelines: Calculating Cost Basis and Option Premium After Rolling Out And Up

Exit strategies or position management for covered call writing and selling cash-secured puts is one of the three required skills we must master to achieve the highest levels of success. […]

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Over-Trading Our Option Positions: Good for Brokers, Not Good For Us

Exit strategies for covered call writing are essential for achieving the highest levels of success. In the BCI methodology, we have a series of guidelines that assist us in determining which position […]

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calculating covered call writing returns

Rolling Options Using the Ellman Calculator

Covered call writing and put-selling are strategies that require us to master three skills: stock selection, option selection and position management or the use of exit strategies. One of the […]

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Why and When We are NOT Losing Money If We Buy Back an Option for More Money than We Received

Exit strategies for covered call writing and selling cash-secured puts all start with buying back the option. Frequently, the cost to close our short option positions will be less than […]

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LEAPS and Covered Call Writing: A Review and a Hypothetical Example/ Contest Application

A covered call writing-like strategy involves buying deep in-the-money LEAPS options and then selling short-term slightly out-of-the-money call options. Leaps become a stock surrogate. The term Leaps stands for Long […]

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calculating covered call writing returns

Rolling Out Decisions: Evaluating a Real Life Trade

Rolling options is an important exit strategy choice when selling covered call and put options. Options can be rolled up and down in the same contract month or a future […]

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