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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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Rolling-Down with a Few Hours to Expiration: A Real-Life Example with Energy Select Sector SPDR (NYSE: XLE) – August 30, 2021
The 20%/10% guidelines are essential to our covered call writing exit strategies. They represent parameters as when to buy back our short calls. A frequent inquiry I receive related...
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Can Price Movement Be Explained by Profit-Taking?: A Real-Life Example with Global X Funds Infrastructure Dev. (PAVE)
On April 8,2021, Nathan shared with me his covered call writing trade with PAVE which was initiated 3 days earlier. This exchange-traded fund had a strong technical chart but the price...
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Application of the 20%/10% Guidelines Within a Broad Range of Implied Volatility Securities – August 16, 2021
I recently published an article titled Managing Implied Volatility Risk by Establishing an Initial Time-Value Return Goal Range. This article served as a catalyst for several inquiries from our members asking...
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Managing Implied Volatility Risk by Establishing an Initial Time-Value Return Goal Range – August 9, 2021
When screening for eligible securities for covered call writing and selling cash-secured puts, we must establish how much risk we are willing to incur. There is no right or...
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Rolling Covered Calls Out-And-Up Means Adding Cash to the Position – August 2, 2021
One of the covered call writing exit strategies in our arsenal as expiration approaches is rolling in-the-money strikes out-and-up. This involves buying back the near-month strike and selling a...
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