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Establishing Our Cost-Basis in a Multi-Step Managed Trade – February 1, 2021
Covered call writing calculations are meaningful only when the correct stats are entered into our formulas (calculators). The cost-basis of a managed trade can be confusing as stock and...
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Delta and Strike Price Selection – January 25, 2021
Strike price selection is the 2nd of our 3-required skills for covered call writing and selling cash-secured puts. I am frequently asked which Delta to use as a guide to a...
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Exit Strategies are Important but Must Be Timed Properly – January 16, 2021
Exit strategy execution for covered call writing and put-selling is the 3rd required skill needed to achieve the highest returns (stock and option selection are the other two). Knowing...
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Special Cash Dividends and Equity Distributions: Understanding Contract Adjustments – December 26, 2020
Contract adjustments to the terms of our covered call writing and put-selling options are due to corporate actions like mergers and acquisitions, special dividends and stock splits. This article will highlight...
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The Poor Man’s Covered Call: Rolling Options in the Current Contract Month – December 19, 2020
Exit strategies are critical to our overall success whether using traditional covered call writing or the Poor Man’s Covered Call (PMCC). In this article, we will evaluate scenarios when...
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Even and Odd Stock Splits: Understanding Contract Adjustments – December 5, 2020
Contract adjustments to the terms of our covered call writing and put-selling options are due to corporate actions like mergers and acquisitions (see the thread on last week’s blog commentary...
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Analyzing LEAPS for The Poor Man’s Covered Call – November 28, 2020
The Poor Man’s Covered Call (PMCC), also known as a long call diagonal debit spread, is where deep in-the-money (ITM) LEAPS options are used in place of the long stock...
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