How To Trade Options Site Youtube.com

How to trade options site youtube.com

Should I Unwind My Covered Call Trade 1 Week Prior to Contract Expiration?: A Real-Life Example with Alibaba Group

Posted on January 11, 2020byAlan EllmaninCovered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies

Covered call writing exit strategies are critical to our overall success.

How to trade options site youtube.com

There are times, however, when the best action is no action at all. On July 25th 2019, Rob shared with me a successful trade he executed and was considering closing 1 week prior to the 8/2/2019 expiration.

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For an answer, we need to turn […]

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Ask Alan #166 Strike Selection Factoring in the Underlying Stock

Posted on January 8, 2020byAlan EllmaninUncategorized

Alan answers a question posed by Hank, who asks: Alan,Alan, What is your opinion about selling an in-the-money covered call for below the price of the underlining stock versus an out-of-the-money?

For example, with GE trading at $8.18, I can sell the September 20th $8.00 call for $0.52 or the September 20th $9.00 call for […]

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Rolling Decisions on Expiration Friday: A Real-Life Example with Veeva Systems

Posted on January 4, 2020byAlan EllmaninCovered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies

Position management is the 3rd required skill for our covered call writing and put-selling success.

How to trade options site youtube.com

On 7/19/2019, Larry shared with me a series of trades he executed with Veeva Systems Inc. (NYSE: VEEV). He astutely “hit a double” and was now looking to roll the option to the following month.  Larry’s trades and inquiry (in […]

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Evaluating Stock Purchase Price and Breakeven When Rolling Out-And-Up

Posted on December 28, 2019byAlan EllmaninCovered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Investing, Stock Option Strategies

When we write a covered call, our breakeven is stock purchase price – entire call premium.

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If we buy a stock for $48.00 and sell an option for $2.50, the breakeven is $45.50. In June 2019, John shared with me a series of trades he executed with Planet Fitness, Inc.

How to Trade Options: A Beginners Introduction to Trading Stock Options by ChartGuys.com

(NYSE: PLNT) where he wrote […]

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Is This Trade a Winner or a Loser?: A Real-Life Example with XLE

Posted on December 21, 2019byAlan EllmaninCovered Call Exit Strategies, Exchange-Traded Funds, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies

Covered call writers must understand and evaluate the success (or lack thereof) of our trades.

Simply stated, are they winners or losers?

How to trade options site youtube.com

In June 2019, Van shared with me trades he executed with the exchange-traded fund (ETF), Energy Select Sector SPDR Fund (NYSE: XLE). He was trying to categorize his trade as a winner or […]

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Analyzing 4-Day and 2-Month Trades with XBI

Posted on December 14, 2019byAlan EllmaninCovered Call Exit Strategies, Exchange-Traded Funds, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies

Mario was generous in sharing his covered call writing trades with SPDR S&P Biotech ETF (NYSE: XBI).

The trades were executed over a 2-month time-frame, the last of which was a 4-day Weekly option.

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Mario’s trades with XBI 4/17/2019: Buy XBI at $84.95 4/17/2019 – 6/2019: Sell calls and “hit doubles” to lower cost-basis […]

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Combining In-The-Money Strikes and Stock Dividends to Provide Protection in Bear Markets + Holiday Discounts

Posted on December 7, 2019byAlan EllmaninFundamental Analysis, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Investing, Stock Option Strategies

When establishing our covered call writing trades, we must factor in current market conditions to either add protection in bear and volatile environments or to take advantage of normal to bull market scenarios.

On May 17, 2019, Mauricio sent me a diagrammatic strategy proposal that would lower the breakeven using an in-the-money (ITM) strike as […]

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Timing Our Covered Call Trades: Lost Opportunity to Generate Cash with Facebook + Black Friday Discount through Monday

Posted on November 30, 2019byAlan EllmaninCovered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Trade Execution, Stock Option Strategies

Our covered call options should be sold simultaneously with the purchase of our stocks.

How to trade options site youtube.com

If we have evaluated a stock and have a bullish assessment for our covered call portfolio, we next check an option-chain to see if the initial time-value returns meet our goals ( for me, it’s 2% – 4% per month).

By […]

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Making Money with Technology Stocks: Investing with QQQ

Posted on November 23, 2019byAlan EllmaninInvestment Basics, Option Trading Basics, Options Calculations, Put-selling, Stock Option Strategies

The exchange-traded fund (ETF) that has appeared most frequently in our premium member ETF reports is Invesco QQQ Trust (NASDAQ: QQQ).

This fund consists of 100 of the largest non-financial companies (predominantly technology companies) that trade on the NASDAQ exchange.

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As of June 2019, the top 3 holdings in QQQ are Microsoft (MSFT), Amazon (AMZN) […]

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In-The-Money Cash-Secured Puts: Allow Exercise or Roll the Option When Using the PCP Strategy?

Posted on November 16, 2019byAlan EllmaninExit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Put-selling, Stock Option Strategies

As contract expiration nears, we must be prepared how to manage our in-the-money (ITM) cash-secured puts.

Assuming we initially sold an out-of-the-money (OTM) put which is now ITM, share price has declined.

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We can assume that by following the BCI guidelines for position management, the current stock price is not more than 3% below the […]

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