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How to Establish a Bear Market Cash-Secured Put Trade – October 23, 2023
In bear and volatile market conditions, we may opt to take a defensive posture with our cash-secured put trades. One technique to accomplish this conservative approach is to use...
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How to Use Stock Options to Lower Our Breakeven Price Points: The Stock Repair Strategy – October 16, 2023
Stock options can be used to mitigate losses on shares we own at a higher price than current market value. Some investors will buy more shares at the new...
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Is Covered Call Writing an Option Zero-Sum Strategy? – October 2, 2023
Covered call writing is not a zero-sum strategy. Both the option-seller (call writer … us) and the call buyer can be successful. This article will provide a hypothetical example,...
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How to Use the BCI Portfolio Setup Spreadsheet to Craft Our Put-Selling Portfolios – September 25, 2023
When we plan our covered call writing and cash-secured puts trades, we must focus in on diversification and cash allocation. In order to accomplish these goals, in April 2023,...
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Collar Calculations Using the BCI Trade Management Calculator – September 18, 2023
The Collar Strategy is a covered call writing-like strategy where a protective put is added to the trade, thereby establishing a floor and a ceiling with a maximum gain and a maximum loss....
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When Should I Take My Profits with a Successful Covered Call Writing Trade? – September 11, 2023
Which %, if any, of our original covered call writing initial time-value return, should we use to close both legs of the trade, and guarantee a realized return? 60%?...
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Using Technical Analysis for Our Stock & Option Selection in Covered Call Writing Trades – September 02, 2023
In our BCI methodology, we have a 3-pronged approach to stock selection for our covered call writing trades: We use a mosaic of all 3 parameters for our choices,...
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How Our Covered Call Trades are Impacted When Regular and Special 1-Time Cash Dividends Come on the Same Day – August 28, 2023
The parameters of our covered call trades are often changed when certain corporate events result in option contract adjustments. These events include stock splits, mergers & acquisitions as well as special 1-time...
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Comparing Covered Call Writing & Cash-Secured Puts in Bull Market Environments – August 21, 2023
Covered call writing versus cash-secured puts in bull markets … which is better? This article will present the arguments for both and make a case why I prefer covered...
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Selecting the Best LEAPS Strike for an AAPL Poor Man’s Covered Call Trade – August 14, 2023
The Poor Man’s Covered Call (PMCC) is a covered call writing-like strategy where deep in-the-money (ITM) LEAPS options replace the long stock positions. LEAPS have expirations of greater than 1 year. Once the...
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