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Anatomy of a Successful Weekly Cash-Secured Put Trade with PINS – November 11, 2024
Selling cash-secured puts (CSP) has a goal of generating weekly or monthly cash flow with or without taking possession of the underlying security. This article will analyze a real-life weekly...
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Rolling a Successful Weekly Covered Call Trade – November 4, 2024
When our covered call trades are expiring in-the-money (ITM), we have an unrealized (shares are not yet sold) maximum return. This consists of option premium + any unrealized share appreciation...
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Hitting a Double and Selling the Stock Using the Trade Management Calculator – October 28, 2024
Hitting a Double is a covered call writing exit strategy where the short call is bought back after share price declines and resold when share price recovers. At expiration, we...
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Lowering Our Breakeven Price Points After Disappointing Earnings Reports: The BCI Stock Repair Calculator – October 21, 2024
An important BCI rule is never to write a covered call or sell a cash-secured put if there is an upcoming earnings report … too risky if the report...
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Circumventing Earnings Reports with Weekly Options – October 14, 2024
Always avoid earnings reports when selling covered call or cash-secured put options. This is a BCI rule to protect against serious share price decline after a disappointing earnings release. This...
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Integrating Cash Allocation into Our Option Portfolios – October 7, 2024
When we construct our covered call writing and cash-secured put portfolios, we must incorporate cash allocation into our investment decisions. In this article, The BCI Portfolio Setup Spreadsheet, the Trade Management Calculator (TMC) and the Premium Stock...
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Aggressive and Defensive Covered Call Writing Trades – September 30, 2024
When crafting our covered call writing trades, we can do so aggressively, using out-of-the-money (OTM) call options, or defensively, using in-the-money (ITM) strikes. In this article, a real-life example...
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How to Best Calculate Weekly Call or Put Trades to Generate Accurate Annualized Initial Returns – September 23, 2024
When we sell weekly cash-secured puts or write weekly covered calls, our trades are, typically, entered on Monday and completed on Friday. This avoids the weekend risk of longer-dated...
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Can We Make Money Selling Options in a Confirmed Bear Market? / New Video – September 16, 2024
Covered call writers and put sellers frequently inquire about generating positive cash flow when the market crashes or in confirmed bear markets as we had in 2008 (real estate...
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How Our Option Prices are Determined
When we sell covered calls or cash-secured puts, we access option-chains to determine the value of the premiums we are selling. This article will highlight the factors that determine these prices and...
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