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Tag Archives: strike price
Avoiding early exercise wihen covered call writing

How To Avoid Early Exercise When Dividends Are About To Be Distributed

Covered call writing is a low-risk strategy that allows us to generate monthly cash flow by selling stock options. Since we are obligated to sell our shares to the option […]

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Covered call writing and special cash dividends

Special 1- Time Cash Dividends and Our Covered Call Positions

Every so often we will see a company declare a “special dividend” which is separate from the typical recurring dividend cycle, if there is one. It is frequently a reflection […]

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EBAY chart showing a mixed technical picturene

In-The-Money Strikes and Covered Call Writing

Option trading basics incorporates fundamental, technical and common sense decisions. One of these, as it relates to covered call writing, is selecting a strike price for the short options position. […]

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Out-Of-The-Money Strike Prices: Pros and Cons for Covered Call Writing

Whenever a study is performed on covered call writing a stock is selected and the nearest out-of-the-money (O-T-M) strike price is sold. This is repeated over and over and then […]

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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 […]

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How to Read an Option Chain

So how much cash can we generate selling options on the stocks that have passed our fundamental and technical screens? The answer lies in the option chain. This is a […]

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The Basics of the Call Option plus a Current Real Life Example

Definitions: Implicit in the term covered call writing is the fact that we are selling call options. They are covered because we first own the underlying equities prior to selling […]

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Overnight Millionaire or Victim of the Rig? Plus: My Readers Pick their Favorite Stocks

Your best friend calls you to tell you about a company that has developed a technology so unique that the profits about to be generated will make all investors filthy […]

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Make money so you don’t lose money. No, this is not a quote from Yogi Berra! It’s me, Alan, speaking and I make no apologies for this seemingly sophomoric statement. […]

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The light bulb went on! I have a property in Florida that is negatively cash flowing. I also have a skill generating cash by selling stock options. This is a […]

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