Jan 12, 2019 | Investment Basics, Option Trading Basics, Options Trade Execution, Stock Investing, Stock Option Strategies
Why should we spend the time to educate ourselves on how to implement and manage covered call writing trades? The answer is simple: Once the 3 required skills (stock selection, option selection and position management) are mastered, we will put ourselves in a position...
Mar 25, 2017 | Covered Call Exit Strategies, Exit Strategies, Option Trading Basics, Stock Investing, Stock Option Strategies, Technical Analysis
The BCI methodology requires fundamental analysis, technical analysis and common sense screening (like minimum trading volume and avoiding earnings reports). One of the most difficult decisions retail investors face is when to sell a stock that has depreciated in...
Sep 20, 2014 | Exchange-Traded Funds, Stock Option Strategies
With the popularity of covered call writing and selling cash-secured puts growing in popularity, we have witnessed the creation of new exchange-traded funds based on these strategies. Over the last few years I have not been a proponent of these securities mainly...
Jul 26, 2014 | Exchange-Traded Funds, Investment Basics, Option Trading Basics, Stock Option Strategies
Most options traders including covered call writers are familiar with exchange-traded funds (ETFs) and many trade options on these securities. Many have also heard of, but are not as familiar with, index options. The purpose of this article is to detail the...
Sep 11, 2010 | Investment Basics
In my books and seminars I discuss determining market tone before making any investment decisions. One of the main factors I utilize in this evaluation is the VIX. The VIX is the ticker symbol for the Chicago Board Options Exchange (CBOE) Volatility Index, which is a...