beginners corner
Archive | Uncategorized RSS feed for this section
contract adjustments and covered call writing

Spin-offs and How they Impact Option Chains and Calculations

Corporate events can impact our covered call writing and put-selling positions in many ways. In today’s article we will focus on spin-offs and how to read an options chain after the event and calculate to moneyness of our options based on the specifics of that event.  Thanks to one of our members, Richard V., who shared […]

27 Comments Continue Reading →
covered call writing during earnings season

How to Use Weeklys and the Premium Stock Reports for Covered Call Writing During Earnings Season

One of the three required skills for covered call writing and put-selling is the selection of the underlying security. Along with this we also must avoid quarterly earnings reports. Since most corporations report earnings in similar time frames (known as earnings season) the number of eligible candidates is dramatically reduced during these time frames. The […]

17 Comments Continue Reading →

2016 New Year’s Greeting & Resolutions from The Blue Collar Investor

Alan Ellman reviews his resolutions and the positives for BCI, and continues on towards expectations for 2016: ” This year’s resolution is being thankful for all the support of the BCI community and team. I realize that I could have never done this without your support, thank you because of you my dream has been […]

1 Comment Continue Reading →

Emergency Management Report: Dealing with Volatile and Bearish Markets:Re-Publication

I am re-publishing this article due to the extreme nature of market behavior this week, something we have come to experience periodically. It is important to re-act non-emotionally until our market stabilizes which it always does. Over the weekend I will also publish the blog article I have been working on this week. Stay calm! […]

2 Comments Continue Reading →
option-selling decisions based on implied volatility

Implied Volatility of ETFs and our Covered Call Writing and Put-Selling Decisions

Covered call writers or cash-secured put sellers who use ETFs (as opposed to individual stocks) tend to be novice put writers, more conservative investors, or have limited funds or time. If you fall into any of these categories, knowing your risk level is critical to your investment decisions and specifically, to which underlying securities you […]

16 Comments Continue Reading →
commissions for covered call writing and put-selling

Evaluating Brokerages And Comparing Their Commissions

Options trade executions include a discussion of the levels of trading approval needed to use various options strategies. You will recall that these defined levels will vary slightly from one brokerage to another. Here is a chart reviewing a sample of these trading levels: In this article, I will review the commission structure of some […]

17 Comments Continue Reading →

Happy Independence Day!

1 Comment Continue Reading →

Why Use Technical Analysis: An Example Of A Complete Technical Breakdown

Technical analysis or fundamental analysis…which should we use in the stock selection process for covered call writing? Many sophisticated investors can make an impressive argument for one or the other. I say why not use both? As most of you know, in the BCI methodology we use actually three types of screens: fundamental analysis, technical […]

14 Comments Continue Reading →