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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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Calculating Covered Call Trades that are Converted to Collar Trades – December 9, 2024
What is a Collar Trade? The collar strategy consists of 3 legs: Real-life example with Alphabet, Inc. (Nasdaq: GOOGL): 6/24/2024 – 7/19/2024Buy GOOGL at $179.30 GOOGL call & put...
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Doubling Our Maximum Covered Call Returns Using the Mid-Contract Unwind (MCU) Exit Strategy – December 2, 2024
Our covered call writing trades offer 2 income streams when using out-of-the-money (OTM) call strikes. (Make that 3, if we incorporate dividends into the strategy). These consist of option...
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Generating Greater Than Maximum Returns Using Exit Strategies – November 25, 2024
Blue Collar Investors know that there are times we shouldn’t “settle” for maximum returns. In this article, a successful covered call trade with QQQM (an exchange-traded fund or ETF)...
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Using Delta to Determine an Ultra-Defensive In-The-Money Covered Call Strike – November 18, 2024
When writing covered calls in bear and volatile markets, we may choose to take a defensive posture and use in-the-money call strikes which offer additional downside protection in the form of...
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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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