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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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Pros & Cons of Leveraged ETFs When Selling Stock Options – October 20, 2025
Retail investors may become enticed to use leveraged exchange-traded funds (ETFs) when writing covered calls or selling cash-secured puts. The reason is that the option returns are generally so much greater...
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Calculating Multiple Call & Put Trades with the Same Stock in 2 Expiration Cycles – October 13, 2025
Calculating our covered call writing and cash-secured put trades can range anywhere from really simple to way too complicated. In this article, an example of the latter will be...
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Comparing Weekly, Monthly and Longer-Term Covered Call Expirations Using the Same Strike Price – October 6, 2025
A common misconception made by many retail investors is that they make more money selling longer-dated options because the dollar amount is so much greater than shorter-dated choices. This...
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A Defensive 4-Day Cash-Secured Put Trade Start-to-Finish – September 29, 2025
Cash-secured put trades can be crafted conservatively by using deep out-of-the-money (OTM) strikes. On 5/27/2025, I executed such a 4-day trade with NetEase Inc. (Nasdaq: NTES), a stock on our premium...
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Using Both ITM & OTM Covered Calls to Align with Current Market Conditions – September 22, 2025
When establishing our covered call portfolios (cash-secured puts, too), our strike selection is influenced by current market conditions. In normal-to-bull markets, we favor out-of-the-money (OTM) strikes which allow for...
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Rolling-Up a Weekly Defensive Cash-Secured Put Trade – September 15, 2025
Sep 13, 2025 | Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Put-selling, Stock Option Strategies When a cash-secured put is sold, we agree to buy the shares at the strike price by the expiration date....
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What is Quantifying Risk: Part II- Using Implied Volatility (IV) – September 8, 2025
In a recent article titled What is Quantifying Risk: Part I- Using Delta, one methodology of measuring the risk of our covered call writing and cash-secured put trades was analyzed. In...
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