Latest Insights in Stock Market Investing
BCI PODCAST 93: WHEN CALL STRIKES MOVE DEEP ITM EARLY IN A CONTRACT
Watch Video: Listen To Audio Version: After entering a covered call trade and share price accelerates substantially, the strike is deep ITM. There are 3 potential paths to follow which are explored in this video: 1. The mid-contract unwind exit strategy 2. Rolling the...
Reverse Covered Call Writing: A Reasonable Bear Market Strategy? A Real-Life Example with SPDR S&P ETF Trust (NYSE: SPY)
Covered call writing is defined as first purchasing or already owning the underlying security and then selling the corresponding call option. By doing so, we are protected; we know our cost-basis. A BCI member proposed to me an extreme bear market strategy where a...
The Significance of Breakeven When Constructing Our Poor Man’s Covered Call (PMCC) Trades: A Real-Life Example with International Business Machines Corp. (NYSE: IBM)
The PMCC Strategy involves buying LEAPS call options (expirations 1 - 2 years out) and selling short-term call options against the long position. The technical term is a long call diagonal debit spread. In our BCI methodology, the trade construction must meet a...
BCI PODCAST 92: Selling Deep OTM Cash-Secured Puts to Create High-Probability Returns
Watch Video: Listen To Audio Version: Using weekly deep out-of-the-money cash-secured puts with Deltas of less than 10 can generate significant annualized returns with greater than 90% probability of success. This podcast uses a real-life example from one of Alan's...
Entering and Adjusting Our Covered Call Trades Using the BCI Trade Management Calculator: A Real-Life Example with WBA
Entering, managing and archiving our covered call writing and put-selling trades are critical to our overall success as well as allowing us to learn and benefit from our investment history. To demonstrate how to achieve a high level of organization and management of...
20%/10% Guidelines: “Hitting a Double” in the Same Day: A Real-Life Example with Consumer Staples Select Sector SPDR (NYSE: XLP)
After entering our covered call writing trades, we immediately enter our 20%/10% BTC (buy-to-close), GTC (good-until-cancelled) limit orders. If and when these thresholds are reached (resulting from share price decline) are short calls will be closed (bought back). At...
BCI PODCAST 91: Portfolio Overwriting Analyzed
Watch Video: Listen To Audio Version: When seeking to generate additional income by writing covered calls on long-term buy-and-hold securities, there is a specific approach we use for covered call writing. Strike selection and position management are specific to our...
Why Did Option Value Decline After Stock Price Accelerated? A Real-Life Example with United Health Group Inc. (NYSE: UNH)
We, as covered call writers and sellers of cash-secured puts, are on the sell-side of options. Every so often, I receive interesting emails with educational value from members who buy options. On 4/21/2022, Kevin shared with a trade he executed with UNH where share...
Evaluating Pre- and Post-Market Opening Calculations; A Real-Life Example with The Simply Good Foods Company: (Nasdaq: SMPL)
Preparing for our initial covered call writing and cash-secured put trades starts pre-market. After developing a watchlist of eligible securities, we turn to the option-chains to determine if initial time-value returns align with our stated goals. Market-makers will...
Wartime Option StrategiesWatch BCi’s series on YouTube.
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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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.