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 […]
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 […]
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. […]
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 […]
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 […]
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 […]
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 […]
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 […]
USING STOCK OPTIONS TO NEUTRALIZE NEGATIVE CASH FLOW PROPERTIES / PART II – Real Life Example
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. […]
USING STOCK OPTIONS TO NEUTRALIZE NEGATIVE CASH FLOW PROPERTIES
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 […]
Podcast
- 111. Rolling Down on a Sharp Market Decline at the end of a Contract
- 110. Exit Strategies Are Important But Must Be Timed Properly
- 109. Delta and Strike Selection for Covered call Writing
- 108. Establishing Our Cost Basis in a Multi Step Managed Trade
- 107: Even and Odd Stock Splits Understanding Contract Adjustments
- 106. "Hitting a Double" with Procter & Gamble: A Covered Call Writing Exit Strategy
- 105. The Poor Man's Covered Call: Rolling Options
- 104. Special 1 Time Dividends and Contract Adjustments
- 103. The Collar Strategy Using Long-Term Put Expirations
- 102. Analyzing Market Assessment Based on Portfolio Setup
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