Feb 17, 2018 | Exchange-Traded Funds, Investment Basics, Option Trading Basics, Stock Investing, Stock Option Strategies
Our covered call writing and put-selling portfolios have been significantly impacted the past few weeks from extreme market volatility. In addition to rising wages, inflation concerns and projected interest rate hikes, volatility based exchange-traded notes are also...
Aug 29, 2015 | Investment Basics, Option Trading Basics, Stock Option Strategies
Option returns play a major role in our covered call writing and put-selling strategies. Mega-returns can be quite enticing but also very dangerous. Recently, with market volatility rising exponentially in response to global-economic concerns, a few of our members...
Nov 8, 2014 | Investment Basics, Option Trading Basics, Stock Option Strategies
Option trading basics teaches us that selling call and put options is actually selling time value. Time value consists mainly of time to expiration stats and the implied volatility (IV) of the underlying security. Since most of us are selling monthly options, the main...
Jun 7, 2014 | Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies, Technical Analysis
Mastering stock and strike price selection are key components in successful covered call writing. There is no one factor that will dictate our choices but rather a mosaic of bits of information which will lead us to the best selections. In this article, I will discuss...
Apr 12, 2014 | Investment Basics, Option Trading Basics, Stock Investing, Stock Option Strategies
Options trading basics teaches us that the VIX or CBOE Volatility Index demonstrates the market’s expectation of 30-day volatility. It measures market risk and is also known as the investor fear gauge. With this in mind, covered call writers are faced with a...