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Using Options to Convert a 9.5% Annualized Loss to a 25.3% Annualized Gain
click ↑ 4 Featured Covered call writing & selling cash-secured puts lower our cost-basis and generate cash flow. These are low-risk (not no-risk) option selling strategies. In this article, a 12-day real-life (from 1 of my portfolios) series of trades will be...
Ask Alan #242: Managing Multiple Put Trades with Multiple Expirations Using the TMC
Hi Alan & Barry, Please see the attached sequence of trades I executed with HWM. My question is as follows: In recording the trade into the TMC, I was able to successfully input the original trade and the subsequent roll-out/down adjustment. However, where do I...
Managing Trades When Strikes Expire Both In-The-Money & Out-Of-The-Money for the Same Stock + Last Chance to Register for This Week’s Free Webinar
click ↑ 4 Featured In previous publications, laddering covered call strikes with the same expiration dates was discussed. This article will address scenarios when the ITM strikes remain ITM and the OTM strikes remain OTM at expiration. A real-life example with Alamos...
BCI PODCAST 171: Rolling-Out to Impressive Profits
One of our frequently used covered call writing exit strategies is rolling-out, where we buy back the current short call and sell a later-dated short call. This podcast uses a real-life example with NVDA where multiple rolling trades were executed, both rolling-out...
Laddering Covered Call Strikes Based on Market Assessment and Risk Tolerance
click ↑ 4 Featured What strike should I select for my covered call trades? In-the-money (ITM), out-of-the-money (OTM), how far out, how far in? This apparent dilemma can easily be navigated by identifying our return goals, market assessment and personal risk...
Covered Call Strike Selection When Using the PCP or Wheel Strategy
click ↑ 4 Featured The PCP (Put-Call-Put) or Wheel Strategy is a multi-tiered option-selling strategy that combines selling cash-secured puts and covered call writing. In the BCI methodology, we (almost) always use out-of-the-money (OTM) put strikes, agreeing to buy...
BCI PODCAST 170: Analyzing the Cost-To-Close a Covered Call Trade Mid-Contract
After entering a covered call trade and share price rises significantly, leaving the original call strike DEEP in-the-money, what exit strategies opportunities should we consider? This podcast will cover rolling-up, rolling-out, rolling-out-and-up, closing both legs...
How to Setup a Technology Collar Trade
click ↑ 4 Featured The collar strategy is a covered call writing-like strategy where a protective put is added to the covered call trade. Typically, an OTM call represents a ceiling to the trade (maximum gain) and an OTM put represents a floor (maximum loss). In this...
Ask Alan #241: To close or not to close, that is the question
Hi Alan, I bought NEM at $98.68 and sold the $100 call and now it is trading at $113.70. I can't make any more money. I'm not sure if I should close the trade or let the shares be sold. I don't care about losing the stock. Any guidance is appreciated. Thanks, Barry...
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
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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.