Latest Insights in Stock Market Investing
In-The-Money Strikes and Covered Call Writing
Option trading basics incorporates fundamental, technical and common sense decisions. One of these, as it relates to covered call writing, is selecting a strike price for the short options position. In bearish and volatile markets I tend to favor the in-the-money...
Ask Alan – Strike Selection and Covered Call Writing
Alan answers a question coming from Dan of Toronto, Canada. Dan writes... "I've only used out-of-the-money strikes when selling covered call options, but I see you use in-the-money strike prices as well. How do you determine which is the nest strike price to...
Ask Alan – When You Close Your Covered Call Position Prior to Expiration Friday
Alan answers a question coming from Phil of Moreno Valley, CA. Phil writes... "On June 25th I purchased 200 shares of BWLD at $82.40 per share. I then sold the July 80 covered call at $4.40. Today the stock is trading at $84.50. My question is... Does it pay to...
Moving Averages And Our Covered Call Selections
Technical analysis is a critical part of our covered call writing success. We use it for both stock selection, exit strategy execution and timing of our trades. We screen stocks fundamentally and technically via the IBD 50, SmartSelect Scan and MSN Scouter. We make...
Ask Alan – IBD 7% / 8% Rule or BCI 20% / 10% Guideline
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...
Covered Call Writing: The Elite Calculator and the Schedule D
Options calculations are critical to maximizing covered call returns. The Elite version of the Ellman Calculator is an important tool in guiding us to making the best possible investment decisions. The Basic Ellman Calculator contains the following tabs: Intro Single...
Covered Call Writing: Should We Use Stop Loss Orders?
Exit strategy execution is critical to maximizing our covered call writing success. But what approach should we use if the underlying equity declines in value? Many investors use a stop loss order when a stock they own declines in value. The question then becomes is...
Implied Volatility and Our Covered Call Writing Premiums
What makes some stock option premiums worth so much more than others? Let’s say we have two stocks, A and B. Both are trading @ $25/share. We look to sell the same month at-the-money $25 strike and one (stock A) returns 2% and the other (stock B) 4%. WHY? The answer...
Greeks: Factors that Influence our Covered Call Premiums
We have all heard the term "the Greeks" as it applies to stock options. Most of us know that these factors somehow explain how certain parameters can impact the value of an option premium. To avoid facing some members of the BCI community claiming that "this is all...
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.