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Holding a Stock Through an Earnings Report Can Result in Impressive Returns: A Real-Life Example with Crocs, Inc. (Nasdaq: CROX)- December 13, 2021
One of the golden rules of the BCI methodology is never to sell an option (call or put) when there is an earnings report due out prior to contract expiration. Most of the...
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Was I Correct to Close My Successful Covered Call Trade? A Real-Life Example with Revolve Group, Inc. (NYSE: RVLV) – December 6, 2021
Alan K asked me to analyze a series of covered call trades he executed with RVLV over a 4-day period. Share price accelerated substantially once the trade was entered...
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Analyzing Covered Call Writing Trades to Enhance Our Trading Skills: A Real-Life Example with The Clorox Company (Nasdaq: CLX) – November 29, 2021
One of the best ways to elevate our option-selling results is to analyze real-life trades. On August 3, 2021, Mark shared with me a series of trades he executed...
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Game Plan When Our Cash-Secured Puts are Exercised – November 22, 2021
When we sell cash-secured puts, we have selected a stock or ETF based on sound fundamental, technical and common-sense principles. We generally select out-of-the-money put strikes that meet our...
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Monitoring Our Collar Trades with the BCI Collar Calculator – November 15, 2021
The collar trade is a covered call writing trade with a protective put. The active leg of the trade is the short call. When exit strategy opportunities present, we make the appropriate trade adjustments....
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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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