The Blue Collar Investor WeBlog

Definitions:

Implicit in the term covered call writing is the fact that we are selling call options. They are covered  because we first own the underlying equities prior to selling the option. Since this is my first article of the new year and given the fact that we have so many new members of the Blue Collar family, I felt it would be prudent to review the basics of the call option. I will follow this up with a video of a current example taken from the IBD 100 list. [Read more →]

2008 has been a bittersweet year for this Blue Collar Investor. So many hard-working, honest, middle class Americans have seen their 401Ks dissipate to a meer shell of its old self; forclosures have become rampant, job losses are skyrocketing and people are beginning to realize that no one seems to have the appropriate solutions. We have seen the greed of Wall Street, the lack of competence of the regulatory agencies, corporate multi-millionnaires begging for taxpayer dollars, and now ponzi schemes plastered all over the news. All this and more has effected the quality of our lives as fear and panic has taken hold of our economy. Furthermore, it has caused me to stop selling options, one of my favorite passtimes. The reason can be found on page 4 (figure 1) of my book, Cashing in on Covered Calls . [Read more →]

______________________________________________________________________________________

Blue Collar Mission Statement

1- Become CEO of your own money

2- Become financially independent

_________________________________________________________________________________________________

Never before have the convictions of the Blue Collar philosophy become more meaningful as they have this past week with the arrest of Bernie Madoff for what may become the biggest fraud in the history of Wall Street. Madoff, now being called “the Thief of Wall Street”, engineered a $50 billion ponzi scheme that has had a rivetting impact on families and charities from Palm Beach Florida to Europe and beyond. How could this have happened, how could it have been avoided, and what are the lessons learned? [Read more →]

Did you ever sit down, scratch your head and say to yourself, “I just don’t get this?” Maybe your best friend is dating a loser; or your favorite pro football team recently hired a clueless coach; or perhaps your college professor just finished puffing through a full pack of cigarettes while giving a 1-hour pathology lecture. Well, I’m scratching my head right now and asking: “why hasn’t the SEC reinstated the Uptick Rule?” [Read more →]

If we were to ask the average investor this question: What does the ticker NYX stand for? The most likely answer would be: The New York Stock Exchange. We would respond: Good answer, but you only get partial credit! The reason for this is that in this global economy businesses must offer multiple product and service lines. In order to flourish, the New York Stock Exchange can no longer stand alone. [Read more →]