beginners corner

Learn how to invest by selling stock options.

Alan Ellman guides us through his system of options trading so
you too can become
CEO Of Your Own Money.

See how we have helped thousands beat the market consistently on their way to financial independence.

* Important Disclosure: The information contained herein should not be construed as personalized investment advice, and should not be considered a solicitation to buy or sell any security or engage in a particular investment strategy. Read Full Disclosure

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What I am most impressed with is the cleverness, yet simplicity that Alan’s system is built upon. It is written for the average person, The Blue Collar Investor.

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The thing I like the most about Alan’s covered call plan is that if you do enough research on the stock at the outset, you can feel comfortable owning it even if it goes down.

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Recent Blog Posts    |  Visit The Blog (Weekly Training Articles & Commentary)

Why the 3% Guideline Applies to Puts but Not to Call Options

Selling options (covered call writing and selling cash-secured puts) will result in a positive outcome in the first four of the following five scenarios: Stock price moves up significantly Stock price moves up slightly Stock price remains the same Stock price moves down slightly (less than option premium) Stock price moves down substantially Although it […]

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Ask Alan

Ask Alan #136 – “Closing a Covered Call Trade after Share Price Declines”

Alan answers a question posed by Tim, who asks: Alan, I purchased 100 sh SNV @ 43.25 on 4/24/17. I sold 1 contract @ .85/sh 44 Call. I did my one week position management inspection of this equity on 4/30/2017. I noticed the stock had a gap down of 41.80 that happened on the 27th. […]

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Tax Implications of Writing Covered Calls against Long-Term Holdings

Covered call writing is a short-term strategy where we sell Weekly or Monthly options to generate cash flow. It is best to use this strategy in sheltered accounts to defer or eliminate tax consequences but that is not always possible. Generally, the income from covered call writing results in short-term capital gains (losses) but there […]

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