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Portfolio Management- Organized Lists Will Improve Our Option Profits

I am a big believer in setting yourself up for success. This is accomplished through education, motivation, commitment and organization. Investors reading this article and others are definitely seeking education, and are motivated and committed. However, without organization the process will become difficult and perhaps unmanageable. As we create a watchlist of the greatest performing stocks […]

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Triple Witching Friday- Coming to YOUR Portfolio on June 18th!

Triple Witching Friday…..what a scary term! Is it the day after Halloween? NO. Is it a hazing ritual for a college fraternity? Not even close. Well then, what is it? It is an event that takes place when stock index futures, stock index options and stock options all expire on the same day. Triple witching […]

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Theta-Time Decay of our Option Premiums

Educated covered call writers know that it is critical to sell our options early in the 1-month cycle. I always try to sell my options in the first week of a 4-week expiration cycle and no later than the beginning of the second week of a 5-week cycle. The reason has to do with the […]

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The Show or Fill Rule- More Cash for Us! plus a Spreadsheet for I-T-M Strikes

When David did battle with Goliath, he used the leverage of his slingshot to overcome overwhelming odds. In much the same way we, as Blue Collar Investors, must use every tool available to us to level the playing field with the market makers and specialists who are taking the other side of our trades. One […]

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Non-Standard Options- What they are and why we should avoid them

You do your due-diligence and select a great performing stock in a great performing industry. Once you have determined that this equity meets all of our system requirements, you head off to the option chains to check the calculations. Since the stock is trading @ $39 per share you check the $40 call. This can’t […]

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Derivatives- Stock Options and More

All center fielders are baseball players but not all baseball players are center fielders. In much the same way, stock options are derivatives but not all derivatives are stock options. A derivative is a financial instrument whose value is “derived” from the underlying asset. It is a contract between two or more parties and the value is determined […]

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Interest Rates and our Stock Market Investments

A few weeks ago, I wrote an article pertaining to The Yield Curve which describes a graph of the interest rates of short, intermediate and long term treasury debt securities. This sparked dozens of questions and comments from our readers on this subject so I thought I’d follow-up with some basic economic information on the impact that […]

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Types of Customer Orders plus Industry in the Spotlight

When instructing our online discount broker as to the actions we want taken, we submit a customer order. These orders can take several different forms depending on our investment strategies and objectives. We can buy or sell; request a specific price or simply the best available price; we can stipulate an action given a particular […]

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Technical Market Theories:More Tools for the Technical Analyst plus Industry in the Spotlight

Chapter 8 in Cashing in on Covered Calls is devoted to technical analysis. This is a method of predicting future stock price movements based on observation of historical stock price movements. We use it to identify trends and for our buy/sell decisions.  The parameters I chose for my system include moving averages, MACD, stochastics and […]

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