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Tag Archives: mid-contract unwind exit strategy
covered call writing and earnings reports

Earnings Reports and Rolling Options

When we sell a covered call and share price rises dramatically, there is a tendency to roll up in order to capture additional future share appreciation. The most common reason for a gap-up in price is a favorable earnings report. In mid-May 2017 Tim wrote me about a series of trades he executed that involved […]

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covered call writing calculations

When Strikes Move Deep In-The-Money: A Real-Life Trade

Covered call writing exit strategies include scenarios when share price moves up or down. Our main enemy is share depreciation where we need to mitigate losses but we must also have the ability to enhance returns when share price rises under certain specific conditions. This article will evaluate a trade sent to us by Mario […]

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covered call writing webinars

Executing Exit Strategies in a Timely Manner

After executing our covered call writing trades, we immediately prepare for position management opportunities…exit strategies. One of these strategies in our arsenal is the Mid Contract Unwind exit strategy. This is used when share value appreciates dramatically resulting in a time value cost-to-close of near zero. In other words, the option originally sold will be […]

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Exit strategies for covered call writing

Closing Our Entire Covered Call Position When Share Price Rises: The Mid-Contract Unwind Exit Strategy

Exit strategies or position management is one of the three major components of this strategy we must master to become elite covered call writers. The other two are stock (or ETF) and option selection. In my books and DVDs I mostly focus on scenarios that can result in losses and how to mitigate those losses or […]

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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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Closing A Covered Call Writing Position Mid-Contract: A Real Life Example

The use of exit strategies will elevate our profits to the highest possible levels. Mastering the skill of position management is one of the main reasons why Blue Collar Investors outperform other covered call writers. A favorite exit strategy of mine is the mid-contract unwind exit strategy used in the first half of an options […]

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Exit Strategy Calculations vs. Final Calculations

Mastering options calculations is an essential skill needed to attain the very highest covered call writing returns. Although the Ellman Calculator will do most of the heavy lifting for us, understanding the reasons behind these calculations and when and how to apply them, will make us all more skilled investors. Recently a BCI member sent […]

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Covered call writing using the Blue collar Investor methodology

Examining A Covered Call Trade

Mastering covered call writing requires us to learn from our mistakes and not repeating them. We can then utilize a series of guidelines and rules that will guide us to the highest possible returns with the least amount of risk. Maximizing profits with capital preservation in mind is what the BCI methodology is all about. […]

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Exit strategies for covered call writing

Covered Call Writing: Generating Additional Income When A Stock Price Gaps Up

Mastering option trading basics includes incorporating exit strategies into our portfolio trades. These opportunities present themselves both when a stock prices declines and accelerates. Recently, a premium member presented me with a hypothetical trade involving FSLR that I felt would be of interest to the entire BCI community. Let me premise my remarks by saying that […]

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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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