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When Should I Take My Profits with a Successful Covered Call Writing Trade? – September 11, 2023
Which %, if any, of our original covered call writing initial time-value return, should we use to close both legs of the trade, and guarantee a realized return? 60%?...
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Using Technical Analysis for Our Stock & Option Selection in Covered Call Writing Trades – September 02, 2023
In our BCI methodology, we have a 3-pronged approach to stock selection for our covered call writing trades: We use a mosaic of all 3 parameters for our choices,...
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How Our Covered Call Trades are Impacted When Regular and Special 1-Time Cash Dividends Come on the Same Day – August 28, 2023
The parameters of our covered call trades are often changed when certain corporate events result in option contract adjustments. These events include stock splits, mergers & acquisitions as well as special 1-time...
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Comparing Covered Call Writing & Cash-Secured Puts in Bull Market Environments – August 21, 2023
Covered call writing versus cash-secured puts in bull markets … which is better? This article will present the arguments for both and make a case why I prefer covered...
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Selecting the Best LEAPS Strike for an AAPL Poor Man’s Covered Call Trade – August 14, 2023
The Poor Man’s Covered Call (PMCC) is a covered call writing-like strategy where deep in-the-money (ITM) LEAPS options replace the long stock positions. LEAPS have expirations of greater than 1 year. Once the...
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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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