Latest Insights in Stock Market Investing
“Pinning the Strike”: A Covered Call Writing Consideration
When considering covered call exit strategies on or near expiration Friday we compare the market price of our stock to the strike price sold. If the share value is even one penny above the strike, the option will most likely be exercised and our shares sold. We may...
Ask Alan – Finalizing Our Covered Call Watch List and Stock Selection
Alan answers a question fromJosh of Walnut Creek, CA. Josh writes... "I'm an experienced, fundamentally oriented, value investor, but over the years I've migrated more and more towards quantitative stock selection methodologies. I believe I have a solid...
Put Selling and Covered Call Writing
When studying option trading basics we learn that to be in a "covered" position we must first purchase the stock before selling the option for the strategy of covered call writing. Some investors will execute both parts of the trade by using a buy-write combination...
Ask Alan – Low Open Interest & Large Bid Ask Spread
Alan answers a question coming from Karen of Marietta, GA. Karen writes... I recently purchased LivePerson, ticker symbol LPSN for $17.49. The $15 strike has a low open interest of 32 and a large, bid ask spread of $0.45. The $17.50 strike has a much larger open...
Support and Resistance: Technical Analysis for Covered Call Writing
Technical analysis is an integral component of our BCI methodology for covered call writing. When identifying stocks for our watch lists and portfolios, we look for uptrending price patterns and utilize moving averages to confirm these trends. In an ideal situation...
Ask Alan – Delta and Covered Call Writing
Alan answers a question coming from Andrew of Marblehead, MA. Andrew writes... "I was watching JP Morgan when it was trading at $33.75, and the August $34.00 call was at $0.93. After taking a phone call, the stock price was up $0.65 to $34.40, but the call option...
Ask Alan – Calculating the Target Price of a Stock
Alan answers a question coming from Dana of Ocala, FL. Dana writes... "My friend said that to compute the target price for Apple Computer you should multiply it by the forward P/E ratio of 11.57 and the earnings per share of 44.16, and that will leave us with a...
Selecting The Best Strike Price
In last week's article concerning option trading basics I highlighted the in-the-money strike in our covered call writing strategy. In this article I will expand our options calculations to all three types of strike prices. First, let's review each of these...
Ask Alan – When to Enter Your Covered Call Trades
Alan answers a question coming from Ron of Milwaukie, OR. Ron writes... "Will you enter a position when the market is in general decline, or when the futures are down and you know that the market will gap down at open? In other words, will you enter a position...
Podcast
- 126. Analyzing the Status of a Rolling-Down Trade
- 124. Dividends and After-Hours News Causing Exercise of OTM Call Strikes
- 123. Implied Volatility, IV Rank and IV Percentile Defined and Practical Applications
- BCI PODCAST 122: Should I Roll-Out My Deep In-The-Money Call Option Mid-Contract?
- BCI PODCAST 121: What is a SPAC (Special Purpose Acquisition Company)?
- 120. Using the Nasdaq-100 Volatility Index (VOLQ) in Covered Call Writing Decisions
- 119. Establishing Our Cost-Basis for Long-Term Holdings
- 118. Adjusting Our Portfolio Mix to Achieve Diversification and Cash Allocation
- 117. When a Covered Call Strike Moves $1000.00 In-The-Money
- 116. How to Execute a Covered Call Trade with a Buy/Write Combination Form
Explore Investment Topics
Covered Call Exit Strategies
Exit Strategies
Our Journey and Mission
The Blue Collar Investor was founded with a simple mission: to empower everyday individuals with the knowledge to invest wisely in the stock market. Our blog focuses on demystifying stock options, providing readers with the tools they need to succeed. We believe that anyone can learn to invest effectively, regardless of their background or experience.
Our story began when our founder Dr. Alan Ellman, realized the lack of accessible resources for average investors. Determined to bridge this gap, we created a platform that offers comprehensive guides, expert tips, and real-world strategies. Today, The Blue Collar Investor is a trusted resource for thousands of readers seeking to enhance their financial literacy and achieve their investment goals.