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Understanding the Math When Rolling ITM Covered Calls Out-And-Up: A Real-Life Example with Utilities Select Sector SPDR Fund (NYSE: XLU) + Save the Date May 11th – April 17, 2023
All strategies, including covered call writing and selling cash-secured puts, have their pros and cons. The same holds true for the exit strategies associated with them. Several of our...
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How to Record & Calculate ITM Covered Call Trades that Become OTM Trades – April 10, 2023
To properly analyze our covered call writing and put-selling trades, we must accurately record each step of the trades such that initial and final results are accurate. In this article, a...
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Establishing Our Option Portfolios in the Heart of Earnings Season – April 04, 2023
Populating our covered call writing and put-selling portfolios during earnings season can be challenging but nothing we can’t overcome. This article will provide ideas as to how to craft...
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Technical Analysis for Options: A Real-Life Example with Deckers Outdoor Corp. (NYSE: DECK) – March 27, 2023
In our BCI methodology, we use a 3-pronged approach to screening for our covered call writing and put-selling portfolios: This article will focus in on the technical analysis of...
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Establishing 84% Probability of Success Put Trades in Bear Markets – March 20, 2023
Selling deep out-of-the-money cash-secured puts in bear markets will provide us with additional protection to the downside in return for lower, but still significant, option returns. This article will...
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How to Calculate Dividends into Our Covered Call Writing Calculations – March 13, 2023
Covered call writing is a low-risk, cash generating option-selling strategy. Premium is generated by undertaking the contractual obligation to sell our shares at a price (strike price) and date...
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Estimating Our Breakeven Price Points When Establishing Our Poor Man’s Covered Call Trades: A Real-Life Example with Apple, Inc. (Nasdaq: AAPL) – March 06, 2023
When initiating our Poor Man’s Covered Call (PMCC) trades, we can estimate our breakeven (BE) price points. It gets more complicated as more layers are added to the trades over the months and,...
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Analyzing a 3-Income Covered Call Writing Trade: A Real-Life Example with Ready Capital Corp. (NYSE: RC) – February 27, 2023
Covered call writing with out-of-the-money (OTM) strikes provides the opportunity for 2 incomes streams, 1 from option premium and the other from share appreciation from current market value up to...
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Review of Dividend Dates & Their Impact on Our Covered Call Trades – February 21, 2023
The main reason for early exercise of our covered call writing options relates to corporate dividends. The key date to be aware of is the ex-dividend date. This article will clarify and...
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How to Enter and Archive Cash-Secured Put Trades Around an Earnings Report – February 13, 2023
In last week’s segment, I posted a series of cash-secured put trades with Etsy, Inc. (Nasdaq: ETSY). Some trades were executed before an earnings report and a few post-earnings....
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