Alan answers a question coming from Paul of Jacksonville, FL. Paul writes…
“I began subscribing to the IBD after reading your books and found it helpful. I would like to ask, however, if you follow the IBD’s rule of always selling a stock when it drops 7 to 8%. If the sale of the stock involves selling your short options position this can get pricey, and many times over the past year, it proved better to wait and let the option expire. Your thoughts.”
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Hi Alan,
I purchased your covered call encyclopedia book a couple weeks ago and love it. If you can’t find what your looking for in there your probally not going to find it anywhere. I have been trying to apply your strategies ( mainly your exit strategies to weekly covered call writing ) keeping in mind that it is a weekly option and not a monthly.
So far I am doing very well with it.
My question to you is do you do any weekly covered call writing or have any literture on the subject? My main reason for liking weekly trades is the 52 pay days rather than 12 per year. Thank you very much and have a great day.
Walter,
Thanks for your generous remarks.
The BCI team is working on a formula for employing weeklys into our conservative approach to cc writing. We want to cover all bases before “allowing” these new products into our proven methodology.
Our initial concerns:
Limited (but growing) pool of stocks with weeklys
Quadruple the trading commissions
Less time for exit strategy executions
More time management
I firmly believe that there IS a place for weeklys and cc writing and will share our methodology in the near future.
Alan
Allan
I wish to share my support to Walter
And encourage you to write a book
On Weekly covered call writing
I am sure it can be a high hit
And well received from income starved
Investors
As a new member I am delighted
With your wealth of information
But I am a true believer of being my
Own CEO of my trading and although your
Legwork of stocks and etfs selections
Guidelines is useful and a good reference
I find myself not using it for my weekly trading
The best trading stocks all have weekly options
Please concentrate your knowledge and penmanship
On this subject and deliver that book
HANZE
Hanze,
Thanks for the suggestion. I have written six books in eight years and plan a bit of a break before a seventh. I’ve had other suggestions and will give all due consideration. I appreciate your valuable participationin our BCI community.
Alan
Good evening Alan,
could I use the BCI collar calculator for my covered strangle trades.
Thank you
John,
We do not have a strangle calculator at this time. BCI has developed the following calculators found only at BCI:
Covered call writing
Selling cash-secured puts
Poor Man’s Covered Call
Collar strategy
Portfolio overwriting
Stock repair strategy
We are currently working on a trading log with all exit strategies incorporated into the spreadsheet. We hope to have this tool available by the end of the year and it will be the first of its kind.
Alan