Position management for option-selling is critical to achieving the highest possible returns. Both covered call writing and selling cash-secured puts have 20%/10% guidelines but are used differently; one for mitigating losses and the other for enhancing gains. The relationship between share price and option value as well as the importance of Theta in our trading decisions are incorporated into this podcast.

Covered call writing has a multiplicity of applications depending on strategy goals and personal risk-tolerance. This podcast focuses in on how we can make only 4 covered call trades per year to allow non-dividend stocks to simulate their dividend counterparts. A real-life example with Paycom Software, Inc.is used to detail the process.

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 highlight the most important trading decisions..

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 assist with these decisions. Alibaba (BABA) will be highlighted to explain the process.

There are several types of covered call writing calculations we must understand and not confuse. We have initial trade structuring, final calculations, long stock and short call calculations. Capital gains and losses can be realized or unrealized. A real-life example with Guidewire Software, Inc. (GWRE) is highlighted to explain the details..

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 include the use of in-the-money call strikes which add an intrinsic-value component to the premium as well as stock dividends. The pros and cons of such an approach is examined in this podcast using a real-life example woth Exxon Mobil (XOM).

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 the overall success of our trading. A real-life example with XBI is analyzed with the assistance of the ellman Calculator.

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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 and exit strategy opportunity lost

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 for a series of trades with a particular security.

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 MSCI Brazil (EWZ) is used to explain the strategy