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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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Selling Cash-Secured Puts: 2 Favorable Outcomes, November 27, 2023
When we sell cash-secured puts (CSPs), we are getting paid to undertake the contractual obligation to buy the holders shares at a price that we (the sellers) determine, called...
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Risk-Reward Profile When Rolling-Up Our Cash-Secured Put Trades – November 20, 2023
One of our available cash-secured put trade exit strategies is rolling-up to generate an additional income stream (or multiple income streams). The disadvantage of this position management approach is...
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How to Manage Near-The-Money Put Strikes as Expiration Approaches – November 13, 2023
Many option traders who sell cash-secured puts prefer not to take possession of the underlying shares. Typically, when a trade is structured, the strike is out-of-the-money (OTM- lower than...
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Using the BCI Trade Management Calculator to Mitigate Losses – November 06, 2023
Our covered call writing positions are at risk when share price declines substantially. We do have, however, our exit strategy arsenal to protect against catastrophic losses. This article will show a...
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How to Calculate Rolling-Up Cash-Secured Put Trades: The BCI Trade Management Calculator + $50.00 Discount Coupon – October 30, 2023
When we roll-up our cash-secured put trades, we are required to place additional cash into our brokerage accounts to secure the higher strike 2nd trade. This article will detail how to...
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