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Why At-The-Money Calls are Frequently Priced Higher than At-The-Money Puts – May 20, 2024
Intuitively, at-the-money (ATM) calls and puts should be priced the same. In most instances, this is not the case. ATM calls are generally priced higher than ATM puts. Why? The reason...
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Using the CEO Strategy with a $25k Portfolio – May 13, 2024
The CEO Strategy is a streamlined version of covered call writing, where we use only 11 underlying securities, the Select Sector SPDRs. This article will utilize a real-life example of how...
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Can We Generate Significant Profits Selling Weekly Covered Calls During a 4-Day Trading Week? – May 6, 2024
Some members of our BCI community have expressed to me that meaningful income cannot be generated selling weekly covered call or put options during a holiday-shortened trading week. This...
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Selling In-The-Money Cash-Secured Puts to Buy a Stock at a Discount – April 29, 2024
When we sell cash-secured puts, we have 2 possible outcomes. If unexercised, we generate cash flow or, if exercised, we buy the underlying security at a discount. This article...
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The Poor Man’s Covered Call Trade Initialization Formula – April 22, 2024
The Poor Man’s Covered Call (PMCC) is a covered call writing-like strategy where LEAPS options are purchased instead of actual stocks or exchange-traded funds (ETFs). Weekly or monthly short calls are...
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Evaluating the Time Value Cost-To-Close to Assist in Covered Call Trade Decisions – April 15, 2024
We enter a covered call trade and share price rises exponentially, leaving the strike deep in-of-the-money (ITM). Should we close the position since we cannot benefit from additional share...
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Analyzing and Correcting Our Covered Call Writing Mistakes – April 8, 2024
When we execute our covered call writing trades, we base our decisions on sound fundamental, technical and common-sense principles. To master our option strategies and elevate our returns to...
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Rolling-Out-And-Up to In-The-Money Strikes – April 1, 2024
Using covered call writing exit strategies is an essential skillset needed to achieve the highest possible returns. The calculations for rolling-out-and-up to in-the-money call (ITM) strikes is a bit more complicated...
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Annualized Returns for Weekly and Monthly Options March 25, 2024
Over the years, I have presented the pros & cons of weekly options versus monthly expirations for our covered call writing and put-selling trades. One of the advantages to...
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Calculating Covered Call Writing & Cash-Secured Put Trades for the Same Stock and Similar Moneyness – March 18, 2024
Should I write a covered call or sell a cash-secured put on an elite-performing stock or ETF? I use both but slightly favor covered call writing. Both have worked...
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