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Portfolio Overwriting

Portfolio Overwriting

Online Streaming video course with Downloadable Workbook

Covered call writing is a cash-generating strategy that lowers our cost basis thereby improving our opportunities for successful investments. It involves a long stock position (we buy the stock) and a short option position (we sell the call option). Portfolio overwriting specifically leverages covered call writing to enhance returns on long-term buy-and-hold portfolios. It assumes low- cost-basis stocks that are generating dividends, securities we want to retain for the foreseeable future. As with all strategies, there are pros and cons that must be mastered to determine if this is a proper strategy for our personal risk-tolerance and return goals. This program will highlight in great detail:

This program will highlight:

  • Covered call writing basics
  • Option basic definitions
  • Accessing and analyzing option-chains
  • The Ellman Calculator
  • Portfolio overwriting overview
  • Pros and cons of portfolio overwriting
  • Avoiding early exercise/Ex-dividend dates
  • Real-life examples
  • The BCI Portfolio Overwriting Calculator

Table of Contents

  • Covered Call Writing Alternative Strategies
  • Preview Example
  • Covered Call Writing Risks
  • Definitions
  • Accessing the Option-Chain
  • INTC Option-Chain Example
  • Initial Profit
  • INTC Initial Calculations with the Ellman Calculator
  • Strike Price Selection
  • Portfolio Overwriting Overview
  • Portfolio Overwriting Advantages
  • Portfolio Overwriting Disadvantages
  • Why Early Exercise is Rare
  • Rolling ITM Options
  • Early Exercise/ Ex-Dividend Dates
  • Practical Application Assumptions
  • INTC OTM Options
  • Portfolio Overwriting Calculations
  • Summary
  • Free Resources
  • Additional Notes

 

How many times will I be charged?
$49 1-time payment