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Learn how to invest by selling stock options.

Alan Ellman guides us through his system of options trading so
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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)

covered call writing calculations

Why Option Buyers Pay More for In-The-Money Strikes

When we sell an in-the-money covered call, we are taking a defensive posture and using the intrinsic value component of the premium to protect the time value initial profit. As an example, let’s look at New Oriental Education (NYSE: EDU) on April 7, 2017: EDU priced at $61.50 $60.00 (ITM) call priced at $3.55 Expiration […]

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Determining the Delta of our Strikes Using the Airport Formula

“What is the best Delta to use when selling covered call options?” I get this question frequently from the educated core of members from our BCI community.  Delta is one of the five option Greeks which are mathematical means of quantifying the risk inherent in our option positions. Delta is one of, what I consider, the “big 3”, with […]

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Ask Alan

Ask Alan 137 – “Can I Use Covered Call Writing to recover Losses on a Dog of a Stock?”

Alan answers a question posed by Sid, who asks: Alan, Please help. I wrongly speculated that Westmoreland Coal (WLB) would flourish with Trump in office. I bought it for $18.14/share in December and it has tanked to $9.71 today (early May). Can I sell covered calls to get my money back? I will need downside […]

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