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Ask Alan 149 – How to Structure Portfolio Strikes

Alan answers a question posed by Peter, who asks:

Wouldn’t it be more accurate to use a portfolio average for ROO, upside and downside instead of straight calculations for each stock?
Thanks, Peter


It’s the 2nd Wednesday of the month. Time for another original episode of Ask Alan. AA#149, “How to Structure Portfolio Strikes”

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About Alan Ellman

Alan Ellman loves options trading so much he has written four top selling books on the topic of selling covered calls, one about put-selling and a sixth book about long-term investing. Alan is a national speaker for The Money Show, The Stock Traders Expo and the American Association of Individual Investors. He also writes financial columns for both US and International publications along with his own award-winning blog.. He is a retired dentist, a personal fitness trainer, successful real estate investor, but he is known mostly for his practical and successful stock option strategies.

5 Responses to “Ask Alan 149 – How to Structure Portfolio Strikes”

  1. Alan Ellman August 8, 2018 5:29 pm #

    This week’s 8-page report of top-performing ETFs and analysis of ALL Select Sector Components has been uploaded to your premium site. The report also lists Top-performing ETFs with Weekly options as well as the implied volatility of all eligible candidates.

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  2. Alan Ellman August 8, 2018 5:32 pm #

    Premium and Video members:

    Blue Hour webinar #10 has been uploaded to your member site. Login and scroll down on the left side to access all 10 webinars.

    The topic is 5 actionable ways to generate monthly cash flow and buy a stock at a discount.

    Don’t forget to also check out the entire library of nearly 150 “Ask Alan” videos.


  3. Hoyt T August 8, 2018 10:00 pm #

    Hi Jay,
    Hi Roni,

    Got your reply to my post on the last thread. Thanks for the kind words.

    It was very late when I posted and I was afraid it might have been the last post.:) I have not been keeping up with how often new threads start.

    I can’t tell you how much help this blog has been to me. I was the youngest of my old group of traders. They have gone to Valhalla, warriors all! One never ceases to learn until one dies, literally or figuratively. You two and others have made me pause and think. We don’t tell each other what to do; we just lay out what works and doesn’t work for us. The intent is to share knowledge. It may not be appropriate for all or for anyone. We can chose what we want to ponder.
    Of course I am talking about our other strategies, not covered call writing. Alan’s years of experience and study have pretty well nailed that down tight. His rules will be his legacy.
    On another subject, what do you think about the market in general?
    I tend to believe in the theory of a melt up in the last half of this year, flat next year ( although pretty volatile) and down in 2020 because of a recession.
    I realize my portfolio is not the market but I experienced a huge run up until Jan 26. It still left me with a very strong Jan(up 12.65%). Feb down 4.73%. Mar-June down 7.41%. Basically flat for the first six months. July up 4.29% (even with FB debacle) and Aug through today up 5.65%.
    I do believe a recession is just around the corner. All major indicators are pointing to one very soon. but sometimes very soon can take awhile.:)
    What do you think?

    • Jay August 9, 2018 8:04 am #

      Good Morning Hoyt,

      New threads start every Saturdya but once a month Alan does a special like this one and it starts a thread until Saturday.

      I’m somewhat leery of the market until the US elections in November. The seasonal patterns associated with that are not favorable so I am keeping a high cash or “dry powder” position to put back in play later in the year. I am not holding any inverse ETF’s because this market has been resilient and it’s tough to bet against it. I will do more over writing than I have been as a defensive measure.

      If you look at 4 year US election cycles next year is historically the strongest for whatever that is worth !? – Jay

  4. Hoyt T August 9, 2018 10:18 am #

    Hi Jay,

    I agree on the 4 year election cycle especially when the president is an incumbent seeking re-election. He usually juices the economy. But this time I think the juice was in 2018 with the 2017 tax cut and the spending bill. I don’t see any real juice left.
    I may be wrong and I hope I am.But with the age of the bull market, interest rates on the rise, deficits on the rise, tax cuts at the top of the market, and the political climate so unfavorable to the administration I believe we may be in a different third year of an incumbent.
    Even if I am right and we have a major correction in 2019 or 2020, there will still be money to be made following the BCI strategy.
    Take care and may the wind be at your back.

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