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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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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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