Moving Averages
Trend analysis is quite useful, but only part of our education as a technician. In a trending market, moving averages are even more important to assessing a …
Investing
Technical Analysis
The art of charting is the analysis of the price chart (that is, trend) in conjunction with studies (e.g., volume) that are appropriate in light of what the …
Technical Chart Analysis For Covered Calls
A covered call writer has a specific set of goals and expectations, and his technical (chart) analysis therefore must be geared to his specific needs. The …
LEAPS Covered Call
No strategy seems to fire the imagination more than buying the LEAPS call (or other long-dated call) instead of the stock and then writing short-term calls …
High Volatility Covered Call Strategies
Volatility Call Writing Definitely not a beginner’s strategy, but more of a trading strategy, this one is based upon trading the calls as the stock …
3 Covered Call Writing Strategies
Blue-Chip Volatility Writing This is a strategy popularly employed. We execute it by finding large-cap (blue-chip) stocks that: 1) are somewhat more volatile …
Proven Buy Write Covered Call Strategies
There are many variants of the buy-write covered call strategy. The simplest is to select the trade, buy the stock and write ATM calls; and it works. But there …
What Is Option Vega?
Vega, the only one of the Greeks not represented by a Greek letter, is the estimate of the change in the theoretical value of an option for a 1-percentage …
Should You Consider ETF Alpha?
When Paul V. Azzopardi started ETF Alpha, he had the aim to provide a service which actually worked and produced results better than buy-and-hold and, at the …
3 Frightful Seasonality Trends
Ahead of Hallow’een, which stocks are displaying frightful bearish seasonal trends? One unsurprising listing on the top 3 bearish seasonal list is iShares …
Compare Historical Volatility And Implied Volatility
When a high option premium roughly matches stock volatility, we can expect premium to stay high so long as stock volatility does not change. A change in stock …
What Is Historical Volatility And Implied Volatility?
There are two types of volatility used in securities analysis: historical and implied volatility. One measures historical price movements while the other …
What Is Option Theta? Θ
Time decay is a term used to describe how the theoretical value (time value) of an option reduces, or decays, with the passage of time. Theta, one of the …
How Does Delta Change Over Time?
How accurate is our delta model in the real world of options? The following table illustrates current- and near-month deltas on Nvidia Corp. (NVDA) when the …
Options Delta
One of the so-called “Greeks”, delta measures how much an option’s price moves as a result of a $1.00 price change in the underlying stock. Note that …
What Is The Effect Of Covered Call Writing In Your Account?
When you write or close a covered call, what happens in your trading account? This is not complicated but you need to know what the effects will be and how to …
How To Close A Covered Call Trade
Closing a buy-write position is simply a reversal of the trade entry process: we buy back the short calls and sell the underlying stock. Let’s walk through …
How To Make Money Online
If you are looking for some extra cash to pay off debt or enjoy some of the finer luxuries in life, look no further. For anyone struggling to figure out how to …
Entering the Covered Call Buy-Write Trade Order
Below is a typical order entry form used by online brokerage firm optionsXpress.com for buy-write covered call trades – it will be similar at most online …
Covered Call Trade Order
It all starts with the trade order. We have examined bid and asked price quotations and various order types. Now we will see how to properly open and close a …