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Blue Collar Investor ETF Report

ETF Option Trading vs. Index Option Trading

Most options traders including covered call writers are familiar with exchange-traded funds (ETFs) and many trade options on these securities. Many have also heard of, but are not as familiar with, index options. The purpose of this article is to detail the differences between ETF option trading and index option trading. Definitions  Exchange-traded fund (ETF): [...]

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Ask Alan

Ask Alan #100 – Can We Day Trade Covered Call Options?

Alan answers a question shared by Marcus, who asks: “I love your tutorials on covered call writing. I’m a novice in the trading world and am very excited to try options trading. I just have a question that I hope you can answer or point to one of your videos that may contain the answer. [...]

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covered call writing and the Ellman Calculator

Writing Covered Calls On Broad Market Exchange-Traded Funds

The initial main step for covered call writers is to select the best underlying security. This choice will vary from investor to investor based on goals and risk tolerance. Some of our members prefer exchange-traded funds (ETFs), a strategy I use in my mother’s portfolio. ETFs offer the advantages of instant diversification, less volatility (in [...]

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Ask Alan

Ask Alan – Will The Ex-Dividend Date Cause Early Exercise?

Alan answers a question shared by Ben, who asks: “Thanks for TRN. I’ve been doing great with this stock since it was published in your stock reports. I recently sold the (July) $40 call option and noticed on the premium report that the ex-dividend date is July 11th and I’m worried that it may be [...]

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calculating covered call writing returns using the Ellman Calculator

Calculating 2-Month Returns When Rolling Out And Up

Options calculations will give us an accurate assessment of our covered call writing profits. It’s more meaningful to use percentages rather than dollar amounts when executing these calculations. For example, a $1000.00 profit on a $10,000 investment (10%) is much more significant than a $1000 return on a $100,000 investment (1%). That’s why percentages forms [...]

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Ask Alan

Ask Alan – Should I Sell My Stock When The Price Goes Down?

Alan answers a question shared by Dave, who asks: “I’ve been virtual trading on the CBOE site as you suggested. Of my first 3 trades I have one losing position and want to know if I should sell the stock- LVS. Please see the screenshot below.” If you want more “Ask Alan” videos, you can [...]

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covered call writing with weekly options

Weekly Stock Options For Covered Call Writing: Pros And Cons

Weekly options (weeklys) are becoming an attractive choice for many covered call writers. These are options that expire every week rather than the more conventional monthly options. Weeklys are listed each week except that no new Weeklys are listed that would expire during the expiration week for regular options (the third Friday of each month), nor [...]

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Happy Independence Day!

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covered call writing and option calculations

Ellman Calculator: Enhancements Made In The 2014 Version

Options calculations are an integral part of our BCI methodology both in guiding us in making the best investment decisions and also in determining our trading success. To assist in achieving these goals I developed the Ellman Calculator six years ago and with the benefit of your suggestions my team and I have been enhancing [...]

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