Setting Up a Weekly CEO Portfolio

The CEO Strategy is a streamlined approach to covered call writing. It is an acronym for Combining Exchange-traded funds with stock Options. The methodology uses only the Select Sector SPDRs as underlying securities. These are exchange-traded funds (ETFs) that divide the S&P 500 into 11 distinct index funds. This article will analyze a real-life example using the best-performing Select Sector SPDRs on 9/30/2024 to establish 1-week trades (Monday through Friday). Our goal is to establish portfolios with initial annualized return potential between 12% and 36%. This does not include additional income potential from share appreciation.

The best-performing Select Sector SPDRs on 9/30/2024 (1-month price performance)

The following securities will be used:

Diversification & cash-allocation spreadsheet

• The column to the left shows the 5 selected index funds. This meets our diversification requirement






• The spreadsheet calculates that based on the $103,390 cash available, $20,678.00 will be allocated per-position






• After entering the price-per-share, the spreadsheet estimates the # of shares that can be purchased and rounds it up or down to the nearest 100






• The initial calculation (not shown) needed to be adjusted as too much cash would be spent, so the final calculations included an adjustment down in the # of shares of XLU purchased (red arrows)






• This adjusted spreadsheet calculates a cash reserve of $3,083.00 for potential exit strategy executions






• We now have met our diversification and cash allocation requirement and are set to buy the shares and sell the options

Monday morning procedures

Shares are purchased and options are sold based on the Portfolio Setup Spreadsheet. After entering our covered call trades, our 10% guideline is entered, protecting us from share price decline.

Real-life 1-week calculations on 9/30/2024 using the BCI Trade Management Calculator (TMC)

• Initial annualized returns range from 25.94% to 41.72% (brown cells), more than meeting our pre-stated goal of 12% to 36%






• Additional income from upside potential (share appreciation) ranged from 0.65% to 2.85% (purple cells)






• Breakeven price points are highlighted in the yellow cells






• Once these trades are executed, we move to position management mode through Friday’s expiration

Discussion

Setting up a weekly CEP Portfolio includes selecting the best-performing Select Sector SPDRs over the past 1-month, incorporating cash allocation and diversification requirements and then calculations to ensure meeting our pre-stated initial time-value return goal objectives.

• Portfolio Overwriting
• The Collar Strategy
• The Poor Man’s Covered Call

 

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• Portfolio Overwriting
• The Collar Strategy
• The Poor Man’s Covered Call

 

Covered call writing is a cash-generating strategy that lowers our cost basis thereby improving our opportunities for successful investments. One of the many benefits of incorporating this strategy into our investment portfolios is that the system can be crafted to meet our trading style, market assessment, portfolio net worth and personal risk tolerance. This book details three such covered call writing-like strategies that will highlight option basic +:

• Practical application
• Calculations
• Real-life examples
• Role of brokerages
• Pros and cons of strategies
• Option Greeks
• Exit strategies
• Flow charts
• Calculator user guides
• And much more

Click here for more information.

 

Your generous testimonials

Over the years, the BCI community has been incredibly gracious by sending our BCI team email testimonials sharing stories as to what our educational content has meant to their families. Moving forward, we have decided to publish several of these testimonials in our blog articles. We will never use a last name unless given permission:

 

New sample trade video

 

 

 

 

 

Upcoming events

1 Long Island Stock Investor Group Part II

March 13, 2025

7:30 – 9:00 ET

Private investment club

Cash-Secured Puts: 2 Outcomes

2. Money Masters Symposium Dallas 2025

Saturday April 5, 2025

Hilton DFW Lakes

Saturday April 5, 2025

Hilton DFW Lakes

2 events:

45-minute workshop

Selling Cash-Secured Puts to Buy a Stock at a Discount or to Enter a Covered Call Trade

 

Selling cash-secured puts is a low-risk option-selling strategy which generates weekly or monthly cash-flow. This presentation will detail how to craft the strategy to buy a stock at a discounted price or to initiate a covered call trade. Topics included in the webinar include:

 

• Option basics
• The 3-required skills
• Practical applications

  • Traditional put-selling
  • PCP (Put-Call-Put or wheel) Strategy (adds covered call writing)
  • Buy a stock at a discount instead of setting a limit order

Real-life examples along with rules, guidelines and calculations are included in this presentation.

 

All Stars of Options panel discussion

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3. Investment Masters Symposium Miami 2025

Thursday May 15, 2025

Thursday, May 15, 2025, at 10:30 am – 12:30 pm EST
Using Both Covered Call Writing & Selling Cash-Secured Puts in a Multi-Tiered Option-Selling Strategy

(The Put-Call-Put (PCP or “Wheel) Strategy)

Thursday, May 15, 2025, at 3:40 pm – 4:25 pm EST
Using Cryptocurrency in Our Low-Risk Option Portfolios

Thursday, May 15, 2025, at 5:55 pm – 6:25 pm EST
All-Stars of Options Panel

Registration details to follow.

4. BCI Educational Webinar Series

Using Cryptocurrency in Our Low-Risk Option Portfolios

June 19, 2025

Registration details to follow.

5. Orlando Money Show

Orlando Resort @ ChampionsGate

October 16 – 18, 2025

Details and registration link to follow.