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

Option selling/ open interest and Volume

Option Liquidity: When Is Vol(ume) Greater Than Open Interest?

Check the options chain before selling a covered call or cash-secured put. In addition to determining the premiums and returns we will generate we also need to make sure the interest or liquidity in these options will be adequate enough for favorable trade executions. Below is a typical options chain showing both Vol(ume) and open interest (OI): [...]

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Why do Call Buyers Exercise Early Prior to the Ex-Dividend Date?

Covered call writers know that early exercise is extremely rare. Call buyers are generally better off selling the option rather than exercising early. In this article we will evaluate why a call buyer may choose to exercise an in-the-money call option prior to expiration by evaluating the choices available to these option holders.   Value of [...]

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Ask Alan

Ask Alan #110 – Should I Buy Back My Option Months Prior To Expiration?

Alan answers a question posed by Shelley, who asks: “On January 6th I sold a July $52.50 call option for $2.90 on WFC, a stock already in my account. Now the premium is $3.60 as share price moved up to $54.38. I do not want to sell my stock. When should I buy back the [...]

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