Latest Insights in Stock Market Investing

Ask Alan # 226: Hitting a Double and Selling the Stock Using the Trade Management Calculator
---------- This video analyzes a series of covered call trades where 2 income streams were generated using exit strategy management. The stock lost money of the 26-day series of trades, but the investor made 1.85% in that time frame. Calculations and trade entries are...

2 Important Dates When Trading Stock Options
click ↑ 4 Featured When we sell covered call or cash-secured put options, there are 2 dates we should factor into our trade decisions. Earnings reports (ER) dates must be considered 100% of the time and ex-dividend dates are important in certain specific scenarios. In...

The Mystery of Our Brokerage Accounts: Where Did My Option Premium Money Go?
click ↑ 4 Featured We sell a covered call or cash-secured put and the cash is immediately placed into our broker cash account. Next, we check our account value, and it did not go up! In some cases, it went down! Where did the option premium money go? This article will...

“Hitting a Put Triple”: Put-Selling Exit Strategies – BCI Podcast 140
Is it true that selling a cash-secured put will result in only 1 income stream ... the put premium? This podcast will demonstrate that this is not necessarily the case. A series of real-life put trades resulted in 3 income streams in the same contract cycle. Links...

Shorter Dated Options Deliver Higher Annualized Returns: The Square Root Rule
click ↑ 4 Featured When selling covered calls or cash-secured puts, using contract expirations several months out (or longer) have the appeal of large option premiums. However, when we annualize these returns, they pale in comparison to the returns generated by...

Portfolio Overwriting NVDA Using Implied Volatility
click ↑ 4 Featured When NVIDIA Corp. (Nasdaq: NVDA) split 10-for-1 in June 2024, more retail investors had the opportunity to leverage this stock to sell options. Many already owned NVDA, but now owned 10x the number of shares at 1/10 the price. Writing covered calls...

Calculating Covered Call Trades that are Converted to Collar Trades
click ↑ 4 Featured What is a Collar Trade? The collar strategy consists of 3 legs: Buy stock (long position) Sell an out-of-the-money (OTM) call option (short call- ceiling) Buy an out-of-the-money protective put (long put- floor) Since a protective put debit is added...

BCI PODCAST 139: Managing Implied Volatility Risk with an Initial Time Value Return Goal Range
Not all our option-selling securities come with the same risk. There is a wide range of implied volatility associated with our stocks and ETFs. High IV securities generate high option premiums but represent greater risk to the downside. The opposite holds true for low...

Doubling Our Maximum Covered Call Returns Using the Mid-Contract Unwind (MCU) Exit Strategy
click ↑ 4 Featured Our covered call writing trades offer 2 income streams when using out-of-the-money (OTM) call strikes. (Make that 3, if we incorporate dividends into the strategy). These consist of option premium + share appreciation from current market value up...
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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.