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What is the Single Best Delta to Use When Selecting My Covered Call Writing Strikes? Answer: None – August 7, 2023
This is one of the most frequently asked questions I receive from covered call writers all over the world. Should I use a 40-Delta? 35-Delta? Higher? Lower? The focus...
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The Collar Strategy: 2 BCI Spreadsheets: A Real-Life Example with Crocs, Inc. (Nasdaq: CROX) – July 31, 2023
The collar strategy is a covered call writing-like strategy where a protective put is added to the covered call trade, creating a 3-leg trade. BCI has developed 2 calculators that can...
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How to Create 3-Income Producing Portfolios Using Covered Call Writing and Dividend Generating Stocks – July 24, 2023
Covered call writing is a low-risk cash-flow strategy that can also create the potential of a 2nd income stream when using out-of-the-money (OTM) strikes which can also produce potential income from...
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Selling Cash-Secured Puts: Part II – July 17, 2023
In our last blog publication, 2 put applications were discussed: traditional put-selling and the PCP (wheel) Strategy. In this week’s article, 3 more approaches will be reviewed. Selling cash-secured...
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Selling Cash-Secured Puts: Multiple Applications: Part I – July 10, 2023
Selling cash-secured puts is a low-risk option-selling strategy where the seller undertakes the contractual obligations to buy shares at the strike price, by the expiration date. In return for...
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3 Approaches to Strike Selection When Portfolio Overwriting Existing Stocks: A Real-Life Example with Dow, Inc. (NYSE: DOW) – July 3rd, 2023
Portfolio overwriting is a covered call writing-like strategy where deep out-of-the-money (OTM) calls are sold against our long-term buy-and-hold securities. Typically, these stocks and exchange-traded funds (ETFs) are of a...
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Should I Allow Exercise & Repurchase the Stock or Roll the Option?: A Real-Life Example with Tesla, Inc. (Nasdaq: TSLA) – June 26, 2023
The crafting and managing of our covered call writing trades are directly dependent on our pre-defined goals. In this article, we will analyze a TSLA covered call trade where...
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How to Enter and Archive a Covered Call Trade with 1 Exit Strategy that is Closed at Expiration – June 19, 2023
After entering our covered call trades, we immediately go into position management mode. Frequently, we can take advantage of a covered call exit strategy opportunity, sometimes more than one....
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Should We Get the Kleenex or the Champagne? A Real-Life Trade with Bilibili Inc. (Nasdaq: BILI) – June 12, 2023
On 12/9/2022, Patrik sent me an email he titled “Covered Call Panic” He shared with me information on his trades and was distraught at the current outcome. This article...
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How to Adjust a Poor Man’s Covered Call (PMCC) Trade to Align with the BCI Trade Initialization Formula – June 05, 2023
The PMCC is a covered call writing-like strategy where LEAPS options act as surrogates for the underlying stock or ETF. It is technically called a long call diagonal debit spread and has the...
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