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Laddering Covered Call Strikes Based on Market Assessment and Risk Tolerance – May 4, 2026
What strike should I select for my covered call trades? In-the-money (ITM), out-of-the-money (OTM), how far out, how far in? This apparent dilemma can easily be navigated by identifying...
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Covered Call Strike Selection When Using the PCP or Wheel Strategy – April 27, 2026
The PCP (Put-Call-Put) or Wheel Strategy is a multi-tiered option-selling strategy that combines selling cash-secured puts and covered call writing. In the BCI methodology, we (almost) always use out-of-the-money (OTM) put strikes,...
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How to Setup a Technology Collar Trade – April 20, 2026
The collar strategy is a covered call writing-like strategy where a protective put is added to the covered call trade. Typically, an OTM call represents a ceiling to the trade (maximum gain) and...
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Setting Up a $50k Covered Call Writing ETF Portfolio – April 13, 2026
Covered call writing portfolios are structured based on cash available, the # of securities used to maximize diversification, as well as appropriate cash allocation and initial time-value return range...
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Using 2 Standard Deviations to Determine the Risk of Exercise of a High Implied Volatility Stock When Covered Call Writing – April 6, 2026
Portfolio overwriting (PO) is a form of covered call writing where, in addition to generating cash flow, we also want to retain the underlying shares. Achieving both goals may become...
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Wartime Option Strategies: We Can Still Make Money – March 30, 2026
Covered call writing and cash-secured puts are low-risk option-selling strategies that can be implemented even in challenging market environments. In the 1st quarter of 2026, the US has been...
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Comparing the Protection from ITM Covered Calls versus Adding Protective Puts (The Collar Strategy) – March 23, 2026
In bear, volatile and uncertain market environments, covered call writers turn to ITM call strikes and protective puts to create greater protection to the downside. In this article, the pros &...
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Shorter-Dated Options Offer More than Greater Annualized Covered Call Returns – March 16, 2026
Covered call writers know to avoid the “shiny object” of long-dated options total dollar premiums and to annualize the initial returns to get a fair assessment as to how...
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What is the “Square Root of Time Rule” & How Does it Impact Option Expiration Date Selection? – March 9, 2026
You’re selling 4, 1-month covered call contracts for the $100.00 strike and generating $1000.00 in premium. Pretty good, right? But wait a minute … if I sell 4, 6-month...
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Can We Use 2 Standard Deviation Implied Volatility When Portfolio Overwriting? – February 23, 2026
Portfolio overwriting is a form of covered call writing where share retention, capital preservation and generation of modest cash flow are specified goals. We are looking to generate an additional option premium...
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