Options Strategist Rick Orford Explains How RSI and Bollinger Bands Enhance Covered Call Trading

Options strategist Rick Orford demonstrates how covered call traders can leverage technical indicators like RSI Rank and Bollinger Band Rank (BBR) within Barchart’s Covered Call Screener to identify higher-quality trade candidates. By focusing on stocks with stretched momentum, rather than chasing yields alone, traders can better target opportunities where upside is likely to slow, favoring time decay for sellers. Orford emphasizes that overbought conditions do not signal imminent crashes but indicate ideal setups for selling options. His approach combines these filters to create a disciplined, repeatable strategy, avoiding emotional trading decisions. The method scales across the market via Barchart’s platform, offering a systematic way to enhance covered call profitability.