With expiration Friday and earnings season fast approaching our common sense principles (see chapter 8 of my latest book) become even more important. Never sell a covered call option with an upcoming earnings report is a critical BCI rule. But what if you own a stock and love it! Hopefully, your admiration for the stock […]
[BCI Podcast] Beginners Corner Lesson 2: Option Basics
Included In This Podcast: General Definitions Covered call writing: An overview The strike price as it relates to the stock price In-the-money At-the-money Out-of-the-money The option premium or how you get paid as it relates to the strike price Intrinsic value Time value The Options Chain
Strike Price Selection- A Critical Covered Call Decision
Covered call writing requires a logical sequence of stock and option decisions. Once we have screened our stocks to locate the greatest performing stocks in the greatest performing industries we must make a decision as to which strike price to use. Our choices include: in-the-money at (near)-the-money out-of-the-money Let’s look at the options chain for […]
Triple Witching Friday- Coming to YOUR Portfolio on March 20th! plus Industry in the Spotlight
Triple Witching Friday…..what a scary term! Is it the day after Halloween? NO. Is it a hazing ritual for a college fraternity? Not even close. Well then, what is it ? It is an event that takes place when stock index futures, stock index options and stock options all expire on the same day. Triple […]
Podcast
- 80. Using the VIX to Achieve Higher Option-Selling Returns
- 79. Adjusting Target Goals with ETFs
- 78. REITS: Good Covered Call Writing Candidates?
- 77. Buyers Have Rights and Sellers Have Obligations- Covered Call Writing Explained
- 76. 5 Top Myths and Misunderstandings about Covered Call Writing
- 75. Reverse Stock Splits Understanding Contract Adjustments
- 74. Strike Selection Using Technical Analysis and Market Assessment
- 73. Mid Contract Unwind Exit Strategy at the End of a Contract
- 72. Rolling Covered Call Options on Expiration Friday
- 71: Dividend Yield Should Be a Secondary Factor for Covered Call Writing
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