Early assignment of our covered call positions is rare but possible. When it does occur, it is frequently related to an ex-dividend date. These are dates that we must own the shares in order to be eligible to receive the dividend on the distribution date. Premium members can access ex-dates of the eligible stocks in […]
How to Use Weeklys and the Premium Stock Reports for Covered Call Writing During Earnings Season
One of the three required skills for covered call writing and put-selling is the selection of the underlying security. Along with this we also must avoid quarterly earnings reports. Since most corporations report earnings in similar time frames (known as earnings season) the number of eligible candidates is dramatically reduced during these time frames. The […]
How To Use Weekly Options To Avoid Earnings Reports
In the BCI methodology, we never sell a covered call or cash-secured put on a stock with a projected earnings report date prior to contract expiration. When selling our traditional monthly options this means we are only able to use a particular stock for eight months of the year because most companies report earnings on […]
Expanded Weekly Options: When Should We Enter A Trade?
With the rising popularity of stock option strategies and covered call writing in particular, we have seen the creation of more option products like weekly stock options. Weeklys expire each Friday of the month whereas the more traditional monthlys generally expire only on the 3rd Friday of each month. Weeklys fall into one of two categries: […]
Weekly Stock Options For Covered Call Writing: Pros And Cons
Weekly options (weeklys) are becoming an attractive choice for many covered call writers. These are options that expire every week rather than the more conventional monthly options. Weeklys are listed each week except that no new Weeklys are listed that would expire during the expiration week for regular options (the third Friday of each month), nor […]
Rolling Weekly Options & Covered Call Writing
The stock option strategies in our BCI methodology are based on years and decades of real-life trading experience. The information detailed in my books and DVDs is geared to giving us the best chance to achieve the highest possible covered call writing returns. This article is different. It is meant to start a conversation and […]
Covered Call Writing, Leveraged ETFs, Weekly Options and Protective Puts
Traditional covered call writing consists of buying a stock or exchange-traded fund (ETF) and selling a call option to generate cash flow. Frequently BCI members will think outside the box and add additional strategies and products to create a covered call writing-like strategy. The goal in these cases is not to complicate a realtively straightforward […]
Stock Option Expiration Cycles: Beware Of Expiration Dates
In the BCI methodology for covered call writing we use predominantly 1-month options. The reasons are as follows: Generate the highest annualized returns Allows us to avoid earnings reports, a key rule in the BCI methodology Keep our obligation to a short-term time frame allowing us to keep only the best current performers in our […]
Options That Expire Weekly and Conventional Expiration Cycles
There’s a new man in town! A relatively new options product is now available called the Weekly Options Series or Weeklys. These weekly expiration options are listed on a Thursday and expire the following Friday. The exception is that weeklys are not traded the week of expiration Friday and therefore do not list new weeklys on […]
Podcast
- 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
- 101. Covered Call Writing: "Hitting a Double" on the Last day of a Contract
- 100. Analyzing LEAPS for The Poor Man's Covered call Strategy (PMCC)
- 99. Anatomy of a Reverse Stock Split
- 98. Analyzing LEAPS Options for the Poor Man's Covered Call
- 97. Managing Our Poor Man's Covered Call Trades When Share Price Drops Substantially
- 96. Protecting Our Covered Call Trades: Protective Puts and In-the-Money Strikes
- 95. Covered Call Writing to Generate Premium and Dividend Income
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