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Setting Up a Portfolio of NASDAQ and S&P 500 Stocks In a User-Friendly and...
Many covered call writers and put-sellers favor a portfolio mix of blue-chip and tech companies and turn to the S&P 500 and the Nasdaq exchange for locating the best underlying securities. Since...
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Managing In-The-Money Strikes When Share Price Moves Higher
When we sell in-the-money call options, we are generating initial time-value profit that meets our stated goals plus creating downside protective of that time-value profit in the form of intrinsic...
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Am I Losing Money When I Buy Back My Deep In-The-Money Strike?
Recognizing successful covered call writing trades is just as important as executing them. On January 17, 2020, Mark wrote to me about a covered call trade that he was analyzing with SolarEdge...
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Analyzing Buy/Write Net Debit Limit Orders
Covered call writing trades can be entered by legging-in (buy stock and then sell option) or as a buy/write trade (one net debit limit order). In the latter order, the option premium is deducted from...
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Rolling Out-And-Up: 6-Week Returns
Option calculations help guide us to an accurate assessment of our covered call writing profits. It’s more meaningful to use percentages rather than dollar amounts when executing these calculations....
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Protecting Our Covered Call Trades: Protective Puts Versus In-The-Money Strikes
Covered call writing is a low-risk, cash-generating strategy. We can lower the risk to an even greater extent by purchasing protective puts and by writing in-the-money (ITM) call options. Now, buying...
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“Hitting a Double” With The Procter & Gamble Co. (NYSE: PG) + 15% Holiday...
After entering our covered call writing trades, we immediately enter our 20% buy-to-close (BTC) limit orders. This will automate the process to close our short calls in the first half of a monthly...
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