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Tag Archives: exit strategies

Analyzing a Covered Call Trade by Barry Bergman, Director of Research, The Blue Collar Investor Corp.

Covered call writing trades can be analyzed from many perspectives. Each analysis represents an enlightening experience as we all learn from each other and share ideas and conclusions. We recently received a series of emails from one of our more experienced and savvy premium members regarding several trades he executed a short while ago. I asked [...]

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Mid-Contract Unwind Exit Strategy: A Real Life Example

To maximize our covered call writing profits it is critical to take advantage of our exit strategy opportunities. Last week I posted a few comments regarding the mid-contract unwind exit strategy and received several emails asking for more information about the trade I alluded to. In this week’s article I will walk through the steps [...]

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Covered Call Writing: Mid-Contract Unwind Exit Strategy

Covered Call Writing: Mid-Contract Unwind Exit Strategy

 Mid-Contract Unwind: The major concern for covered call writers is the stock price dropping in value. The option premium collected is money in the bank. Most of our exit strategies are designed to mitigate these losses and turn losses into gains. However, as Blue Collar Investors we should also be prepared to act if the opposite [...]

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Covered Call Writing and Holding a Stock Through an Earnings Report

Covered Call Writing and Holding a Stock Through an Earnings Report

With expiration Friday and earnings season fast approaching our common sense principles (see chapter 8 of my latest book) become even more important. Never sell a covered call option with an upcoming earnings report is a critical BCI rule. But what if  you own a stock and love it!  Hopefully, your admiration for the stock [...]

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Rolling Strategies On Or Near Expiration Friday

Rolling Strategies On Or Near Expiration Friday

With one week remaining before the expiration of the November option contracts I thought I’d use this week’s blog article to review the process of the rolling exit strategies. I will use a real-life example taken from our Weekly Stock Screen and Watch List. The figures you will see are based on the options chain [...]

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