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Ask Alan – Should I Close My Covered Call Position Early?

Alan answers a question shared by Praveen, who asks:

“I have a question for you with regard to a Black Swan event type hedge. What, in your opinion, are some of the better ETFs (leveraged or not) to hedge against a dramatic downturn? I think the market has run up too quickly and is due for a major pullback.”

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About Alan Ellman

Alan Ellman loves options trading so much he has written three top selling books on the topic of selling covered calls alone. He is a dentist by day, a personal trainer, successful real estate investor, but he is known mostly for his profound stock option strategies.

3 Responses to “Ask Alan – Should I Close My Covered Call Position Early?”

  1. Alan Ellman December 4, 2013 6:10 pm #


    From now through December 24th, the BCI team is offering a 10% holiday discount on all items in the Blue Collar store. Use promo code “HOLIDAYDISCOUNT”

    Premium members please enter the store from the premium site to get your additional premium member discount.

    Happy holidays from…

    Alan and the BCI team

  2. Alan Ellman December 4, 2013 6:11 pm #

    Premium members:

    This week’s 6-page report of top-performing ETFs and analysis of ALL Select Sector Components has been uploaded to your premium site. The report also lists Top-performing ETFs with Weekly options.

    For your convenience, here is the link to login to the premium site:

    NOT A PREMIUM MEMBER? Check out this link:

    Alan and the BCI team

  3. Alan Ellman December 6, 2013 2:05 pm #

    Running list stocks in the news: EDU:

    New Oriental Education & Technology Group provides private educational services to over 17 million students in China. Its 1st quarter earnings report came out on October 23rd and reported net revenues increasing by 15.7% and earnings beating consensus. Student enrollments rose by 2.3% year-to-year. As a result, guidance and analyst consensus on earnings growth has been very strong as shown in the chart below. Our Premium Member Stock Report show an industry segment rank of “A” and a beta of 1.15. CLICK ON IMAGE TO ENLARGE AND USE THE BACK ARROW TO RETURN TO THIS BLOG.


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