-
How to use the CEO Strategy with Inverse ETFs in Extreme Bear Markets – September 3, 2024
The CEO Strategy is a covered call writing-like strategy, a streamlined approach to covered call writing. It is an acronym for Combining ETFs with Stock Options. It involves using only the 11 Select Sector...
Read More -
Selling Weekly Covered Calls Using the CEO Strategy – August 26, 2024
The CEO Strategy (Combining Exchange-traded funds with stock Options) is a covered call writing-like strategy where the only underlying securities considered are the 11 Select Sector SPDRs. These are ETFs that...
Read More -
Executing Your First Covered Call Trade – August 19, 2024
Option trading and covered call writing, in particular, have become increasingly popular over the past several years. As our membership has been growing more than ever, we have a large...
Read More -
Bullish & Bearish Covered Call Trade Executions When Selling Multiple Contracts on the Same Stock – August 13, 2024
When selling covered calls or cash-secured puts, we must be appropriately diversified, as well as allocating a similar amount of cash per position. This will protect our portfolios from...
Read More -
Why Wasn’t My Deep In-The-Money Covered Call Exercised? – August 5, 2024
When we write covered calls, our expectation is that if the strike expires in-the-money (ITM), even by $0.01, our shares will be sold at the strike price as a result...
Read More -
Using Implied Volatility & Delta When Selecting Ultra-Low Risk Cash-Secured Put Strikes – July 29, 2024
When we sell cash-secured puts with the goals of generating cash-flow while simultaneously crafting trades with low probability of exercise, strike selection becomes critical. To accomplish these objectives, we...
Read More -
Portfolio Overwriting Weekly Covered Calls with Chipotle Mexican Grill – July 22, 2024
Portfolio overwriting is a covered call writing-like strategy seeking to both generate cash flow and retain the underlying shares. Share retention may be motivated by our bullish long-term assessment of...
Read More -
My Covered Call is Expiring In-The-Money and I Want to Keep My Shares – July 15, 2024
Covered call writers will frequently find themselves in a position where the short call is expiring in-the-money (ITM), while still wanting to use the same underlying shares for the next...
Read More -
Should I Close My ATM Covered Call with 2 1/2 Months Until Contract Expiration? – July 8, 2024
When our covered call writing trades move deep in-the-money (ITM), the time-value cost-to-close approaches (but does not reach) $0.00. In these scenarios, it may make sense to close both...
Read More -
The Importance of the 3% Guideline When Selling Out-Of-The-Money Cash-Secured Puts – July 1, 2024
On 10/20/2023, a BCI premium member shared with me a cash-secured put series of trades executed with Charles Shwab Corp. (NYSE: SCHW). Over the course of 9 months, SCHW dropped in price from...
Read More