Category Archives: Strategy

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Options Strategy: The Installment Collar

The collar can be expanded to create a truly creative variety. The traditional collar (own 100 shares, sell 1 covered call, and buy 1 put) can be turned into a long-term protective version: buy 100 shares sell one very short-term covered call, maximizing annualized income as the result of time decay, picking a strike higher […]

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Annualizing Covered Call Returns For Consistency

When writing covered calls, it’s important to accurately compare one expiration to another, to make certain that your analysis is accurate based on both rate and time. You can compare annualized returns under the following guidelines: Make all yield comparisons to the strike. Use the strike for consistency, based on the rationale that if exercised, […]

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Options Strategy: Swing Trading With Variable Weighting

Using options to focus more on either uptrend or downtrend is an effective method for augmenting the swing itself. The strategy assumes that you have an opinion about the prevailing direction of movement in the underlying, and that momentum confirms your opinion. So as a starting point, you can coordinate a weighting decision by checking […]

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Bullish SPX Trading Strategies

SPX was trading at 2068.76 on July 6th. There were 47 days until the August 21st expiration. You believe that there will be a 3% upward move in the S&P between now and then. That would mean a move up to 2130. There are a number of different bullish strategies that would benefit from a bullish move. […]