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Rolling-Down to an ITM Strike in the Last Week of a Monthly Contract – November 8, 2021
When we roll-down our covered call trades, we generally do so to an out-of-the-money (OTM) strike to allow for share price recovery. However, in the final week of a...
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After-Hours and Pre-Monday Morning Market Trading Bid-Ask Spreads – November 1, 2021
Many members of our BCI community have commented on the wide and, therefore, unfavorable bid-ask spreads that are published before the markets open and after they close. This article will explain...
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Should Good News Discourage Us From Entering a Covered Call Trade? – October 25, 2021
We examine the BCI Premium Stock Report on the Sunday May 23, 2021, after expiration Friday, for our Monday trade selections. One of the securities we choose is Applied Materials, Inc. (Nasdaq:...
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Explaining “Bought-Up” Value When Rolling a Covered Call Out-And-Up – October 18, 2021
One of our key covered call writing exit strategies is rolling an option when the strike is in-the-money at expiration and we want to retain our shares. We can roll-out to...
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Best Technology ETFs for Our Option-Selling Portfolios: QQQ and XLK – October 11, 2021
When seeking to add a technology presence to our covered call writing and put-selling portfolios, we can do so by using exchange-traded funds (ETFs) based on technology benchmarks. Two such reliable...
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Exit Strategies for Covered Call Writing: “Hitting a Triple” with XLU – October 4, 2021
Benefitting from exit strategies, in our covered call writing and put-selling portfolios, is the result of preparation and opportunity. Our 20%/10% guidelines for covered call writing protects us when share price...
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“Hitting a Put Triple” with Lowe’s Companies, Inc. (NYSE: LOW) – September 27, 2021
Exit strategies for covered call writing and selling cash-secured puts are an integral part of the BCI success model. In April of 2021, Tom was excited to share with...
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Stock Repair Strategy: A Real-Life Example with Lyft, Inc. (Nasdaq: LYFT) – September 20, 2021
Stock options have a myriad of applications. With our covered call writing and put-selling strategies, we seek to generate cash-flow in a low-risk manner. Another utilization of stock options...
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The Poor Man’s Covered Call (PMCC): Explaining Upside Potential + Premium Membership News – September 13, 2021
When using the PMCC strategy, a covered call writing-like strategy, our goal is to generate cash flow with a lower cash investment than traditional covered call writing. The BCI...
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Selling Cash-Secured Puts to Simultaneously Generate Cash Flow and Buy a Stock at a Discount – September 7, 2021
Selling cash-secured puts is a low-risk option-selling strategy geared to generating cash flow and beating the market on a consistent basis. In certain scenarios an additional goal of buying the...
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