Meaningful option calculations are essential in determining if the premiums meet our goals. To this end, we must understand the mathematics of these calculations to become elite covered call writers. […]
Implied Volatility and Our Covered Call Writing Premiums
What makes some stock option premiums worth so much more than others? Let’s say we have two stocks, A and B. Both are trading @ $25/share. We look to sell […]
Covered Call Writing: Factors That Affect The Value Of Our Option Premiums
So you sold an options contract for $380 and generated a 3.5% 1-month return. Did you ever wonder how the market determined the value of that options contract to be […]
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 […]
Factors that Determine the Value of your Option Premium
So you sold an options contract for $380 and generated a 3.5% 1-month return. Did you ever wonder how the market determined the value of that contract to be $380? […]
Theta-Time Decay of our Option Premiums
Educated covered call writers know that it is critical to sell our options early in the 1-month cycle. I always try to sell my options in the first week of […]
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