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Setting Up a Covered Call Trade: Step-by-Step Process + New Trade Video – February 17, 2025
Establishing our covered call trades require a sequential process including stock selection, option selection and position management. This article will analyze the procedures using a real-life example with Tenet...
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The 5 Most Common Mistakes Made by Covered Call Writers – February 10, 2025
Selling options (covered calls or cash-secured puts) is as much an art as it is a science. There are several principles that must be adhered to in order to...
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Can We Use Delta to Establish a Low End of a Trading Range for ITM Covered Calls? – February 3, 2025
Implied volatility (IV) can be used to establish approximate upper and lower ends of trading ranges for our covered call and put-selling trades. The BCI Expected Price Movement Calculator was designed for...
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Rolling-Out Our Covered Call Trades After Rolling-Down – January 27, 2025
Market volatility can cause our covered call trades to whipsaw up and down, much like a roller-coaster. In this article, a real-life trade with The Industrial Select Sector SPDR Fund...
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Converting a High Risk to a Low Risk Covered Call Trade – January 20, 2025
High implied volatility securities can be used in covered call trades in a defensive manner using the appropriate call strikes. In this article, Neurocrine Biosciences, Inc. (Nasdaq: NBIX) will...
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Rolling-Up Twice and Closing a Mixed Cash-Secured Put Trade – January 13, 2025
Exit strategies for covered call writing and selling cash-secured puts are critical in achieving the highest level of our trading returns. In this article, a real-life example with SPDR S&P...
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2 Important Dates When Trading Stock Options – January 6, 2025
When we sell covered call or cash-secured put options, there are 2 dates we should factor into our trade decisions. Earnings reports (ER) dates must be considered 100% of the time and ex-dividend dates are...
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The Mystery of Our Brokerage Accounts: Where Did My Option Premium Money Go? – December 30, 2024
We sell a covered call or cash-secured put and the cash is immediately placed into our broker cash account. Next, we check our account value, and it did not...
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Shorter Dated Options Deliver Higher Annualized Returns: The Square Root Rule – December 23, 2024
When selling covered calls or cash-secured puts, using contract expirations several months out (or longer) have the appeal of large option premiums. However, when we annualize these returns, they pale in comparison...
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Portfolio Overwriting NVDA Using Implied Volatility – December 16, 2024
When NVIDIA Corp. (Nasdaq: NVDA) split 10-for-1 in June 2024, more retail investors had the opportunity to leverage this stock to sell options. Many already owned NVDA, but now...
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