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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...
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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...
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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...
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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...
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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...
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I Made a Lot of Money, So Why Am I Crying? – June 24, 2024
Covered call writing trades have 2 components: we are long the stock and short the option. When evaluating the success or lack thereof for our trades, we must factor...
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Option Greeks Defined and Theoretical Calculations + Premium Membership Pricing Information – June 17, 2024
The option Greeks are a series of calculations that measure the factors that impact our option prices and risk. The Black-Scholes Model can be used to determine the theoretical value for...
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How to Use the BCI Portfolio Setup Spreadsheet to Craft Our Option-Selling Portfolios – June 10, 2024
When establishing our covered call writing and cash-secured put portfolios, it is critical to factor in stock and industry diversification and cash allocation. Our BCI premium stock & ETF reports along...
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Calculating Our Rolling-Out Trades: 2 Approaches Using the BCI Trade Management Calculator (TMC) – June 3, 2024
When we roll-out our covered call writing trades, the initial strike is in-the-money (ITM) as expiration is approaching and we made a decision to retain the underlying security for the next...
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Rolling-Up Covered Call Trades in the Same Contract Cycle – May 28, 2024
We enter a covered call writing trade, and share price accelerates exponentially. What exit strategy opportunities are available, if any? This article will discuss the mid-contract unwind (MCU) and rolling-up exit...
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