BCI PODCAST 63  Rolling Decisions on Expiration Friday

BCI PODCAST 63 Rolling Decisions on Expiration Friday

There are multiple exit strategies available to us as covered call writers or put-sellers. In this podcast, 2 such strategies will be discussed using a real-life series of trades with Veeva Systems, Inc. (VEEV). BCI calculators will be used to…

BCI PODCAST 62  Should I Unwind My Covered Call Trade 1 Week Prior to Contract Expiration?

BCI PODCAST 62 Should I Unwind My Covered Call Trade 1 Week Prior to Contract Expiration?

Unwinding both legs of a covered call trade can be motivated both when share price declines or accelerates significantly. This podcast will analyze when it makes sense to take action and how to use the Elite and Elite-Plus Calculators to…

Ask Alan #184 - Strike Price Selections for Collar Trades

Ask Alan #184 – Strike Price Selections for Collar Trades

Alan answers a question posed by Dennis who asks: Hi Alan, I like the idea of adding protective puts to my covered call trades. What is the best way to decide on the best call and put strike prices? Thanks,…

BCI PODCAST 60: Combining ITM Call Strikes & Stock Dividends to Protect in Bear Markets

BCI PODCAST 60: Combining ITM Call Strikes & Stock Dividends to Protect in Bear Markets

The reason covered call writing allows us to beat the market on a consistent basis is that it lowers our cost-basis. In bear and volatile markets we may choose to structure the strategy to provide even greater protection. This may…

AA 183: Analyzing the Cost-To-Close When a Strike Moves Deep In-The-Money

AA 183: Analyzing the Cost-To-Close When a Strike Moves Deep In-The-Money

Alan answers a question posed by Mark who asks: Hi Alan, I am confused by the math when my stock rises a lot. I bought SEDG for $94.27 and sold the $90.00 call for $6.30. The stock moved up to…

BCI PODCAST 59: ANALYZING 2 Month and 4 Day Covered Call Trades

BCI PODCAST 59: ANALYZING 2 Month and 4 Day Covered Call Trades

When calculating our covered call writing returns, there are 2 sets of computations that shouldn’t be confused. One is the calculations we use to make the best trading decisions at any given point in time. The other relates to analyzing…

BCI PODCAST 58:  Is This Trade a Winner or a Loser?

BCI PODCAST 58: Is This Trade a Winner or a Loser?

When evaluating our covered call trades we must understand the difference between “realized” and “unrealized” returns. This podcast will analyze a series of trades with Energy Select Sector SPDR Fund (XLE) which includes initial trade structuring, realized versus unrealized returns…

BCI PODCAST 57  Evaluation Stock Purchase Price and Breakeven When Rolling Options

BCI PODCAST 57 Evaluation Stock Purchase Price and Breakeven When Rolling Options

There are 2 sets of calculations we must analyze when rolling our covered call options out-and-up. The first is based on making the best trading decisions at any given point in time. The second is when evaluating our overall returns…

BCI PODCAST 56  Selling Deep In The Money Calls to Exit Stock Positions

BCI PODCAST 56 Selling Deep In The Money Calls to Exit Stock Positions

Covered call writing can be leveraged to exit stock positions to mitigate losses or to enhance gains. As long as there is a time-value component to the option premium, we can benefit from this approach. A real-life example with iShares…

BCI PODCAST 55  Expiration Dates Versus Expiration Times  Clarifications

BCI PODCAST 55 Expiration Dates Versus Expiration Times Clarifications

Expiration dates define the last time option traders can take action whereas expiration times specify when an option-contract becomes null and void. Understanding the differences can impact how we manage our trades. This podcast also explains the mechanism of the…