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Using the Mid-Contract Unwind Exit Strategy to Achieve an 8.4%, 25-Day Return – December 29, 2025
It is not uncommon to attain greater than maximum returns when implementing our covered call writing exit strategies. In this article, a series of trades will be analyzed where...
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Lowering Cash-Secured Put Breakeven Price Points Means Greater Protection to the Downside with Lower Premium Returns – December 22, 2025
When executing our cash-secured put trades in bear, volatile or uncertain market conditions, it is reasonable to structure our trades with lower breakeven price points. This will come at the expense...
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Buffer ETFs and the Collar Strategy – December 15, 2025
Buffer ETFs have become popular over the past few years. Covered call writers can draw a reasonable analogy between the collar strategy and these buffer securities. This article will highlight the similarities...
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Rolling-Down a Covered Call Trade During a 3 1/2 Day Contract – December 8, 2025
It is never too late to implement covered call exit strategy opportunities. In this real-life example with Howmet Aerospace Inc. (NYSE: HWM), a defensive covered call trade was rolled-down during...
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Calculating Realized & Unrealized Returns for an Expiring Worthless Covered Call Trade – December 1, 2025
We enter a covered call trade and share price declines, but not enough to trigger our 20%/10% BTC/ GTC limit orders (exit strategy buyback price points). The option expires worthless. There...
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How to Calculate and Archive Results for a Rolling-Out-And-Up Covered Call Trade – November 24, 2025
When a covered call trade is expiring in-the-money (ITM), we may have an opportunity to retain the underlying shares by rolling-out or rolling-out-and-up. The latter is a more aggressive form...
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How to Earn More than a Maximum Return with a Defensive Covered Call Trade – November 17, 2025
When crafting our covered call trades to offer greater protection to the downside, we favor in-the-money (ITM) call strikes. These provide lower breakeven price points because ITM strikes consist...
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Strike Selection After Rolling-Out Our Portfolio Overwriting Trades – November 10, 2025
Portfolio overwriting is a covered call writing-like trading strategy. There are 2 distinctly defined goals: generating cash flow + retention underlying shares. Since deep out-of-the-money (OTM) strikes are used to...
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Beware of the Shiny Object When Establishing Covered Call Trades
One of the more common oversights made by retail investors is their focus on premium dollar amounts rather than annualized returns. I consider this “dollar distraction” the shiny object that prevents...
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Achieving Our Goal When Selling a Defensive Covered Call – October 27, 2025
When we structure our covered call trades in a defensive manner, we have 2 main goals in mind. We seek greater protection to the downside than traditional put trades...
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