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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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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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