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Using Implied Volatility and the BCI Expected Price Movement Calculator to Avoid Exercise – February 5, 2024
When we write covered call options and sell cash-secured puts, our goal is to generate cash-flow in a low-risk manner. Frequently, a second important goal is to avoid exercise...
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Trading Weekly Options on a 4-Day Trading Week – January 29, 2024
Can we generate meaningful returns writing covered calls or selling cash-secured puts on a 4-day, holiday-shortened trading week? The answer is a resounding yes. This article will focus on a...
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Post-Earnings Opportunities: A Real-Life Example with NVIDIA Corp. (Nasdaq: NVDA) – January 22, 2024
Always avoid having an option in place if there is an upcoming earnings report prior to contract expiration. This applies to covered call writing and selling cash-secured puts as it will avoid the...
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Combining Covered Call Writing and Selling Cash-Secured Puts – January 15, 2024
When we integrate both covered call writing and selling cash-secured puts into one multi-tiered option selling strategy, we have our Put-Call-Put or PCP Strategy. Outside the BCI community, this is...
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Sector Rotation and the CEO Strategy – January 8, 2024
In 2023, BCI introduced the CEO Strategy, a streamlined approach to covered call writing using the Select Sector SPDRs. This article will explain why sector rotation in our business cycle will create opportunities for this strategy...
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Whisper Numbers: Another Reason to Avoid Earnings Reports – January 02, 2023
BCI Rule: Never write a covered call or sell a cash-secured put if there is an upcoming earnings report prior to contract expiration. All other parameters in our BCI methodology...
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Selling Weekly Puts After Disappointing Earnings Reports: A Real-Life Example with Microsoft Corp. (Nasdaq: MSFT) – December 26, 2023
We can leverage our knowledge of cash-secured puts to take advantage of common scenarios. In this article, we will detail how to take advantage of a disappointing earnings report from a...
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Using the BCI Expected Price Movement Calculator to Sell Weekly Cash-Secured Puts – December 18, 2023
When selling cash-secured puts, a common strategy goal is to avoid exercise and having shares put to us. This means selling out-of-the-money (OTM) strikes that have a low probability of exercise...
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Using Weekly Options During Earnings Season: A Real-Life Example with RingCentral, Inc. (NYSE: RNG) – December 11, 2023
Populating our covered call writing and put-selling monthly portfolios during earnings season can be challenging as we seek to avoid companies about to report earnings. This is the most important rule in...
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Buying Back OTM Cash-Secured Puts on Expiration Friday to Avoid Potential Exercise – December 4, 2023
When cash-secured puts are sold, many investors prefer to avoid exercise and having the shares put to them. If the (originally) out-of-the-money (OTM) strike is in-the-money (ITM) as expiration approaches due...
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