Latest Insights in Stock Market Investing
BCI PODCAST 45 Implied Volatility and Expected price Movement During the Life of Option Contracts
Watch Video: Listen To Audio Version: Implied volatility (IV) is a critical concept to option traders. There are some misconceptions regarding the significance of these IV stats. This podcast will define IV and use a real-life example with an exchange-traded fund to...
How to Select the Best Strike Prices for Collar Trades: Real-Life Example with Advanced Micro Devices, Inc. (NASDAQ: AMD)
Covered call writing is associated with 2 legs: we are long the stock and short the call option. If we add a protective put, we have converted the covered call trade to a collar trade which has both a floor (put strike) and a ceiling (call strike). The traditional...
BCI PODCAST 44 Can We Use ITM Strikes to Create a No Risk Covered Call Strategy?
Watch Video: Listen To Audio Version: This podcast will dissect a proposed no-risk strategy involving closing a covered call trade when share price moves to breakeven. A real-life example with PayPal Holdings, Inc. (NASDAQ: PYPL) is used to consider intrinsic-value,...
Poor Man’s Covered Call: Selecting the Best LEAPS Strike
The Poor Man's Covered Call (PMCC) is a covered call writing-like strategy where deep in-the-money LEAPS options are used in lieu of long stock positions. Short-term out-of-the-money call options are sold against the long position. The technical term is a long call...
BCI PODCAST 43 Converting a Covered Call Trade to a Collar Trade
Watch Video: Listen To Audio Version: When share price moves well above a covered call strike, we may decide to lock in a large percentage of the unrealized profit by purchasing a protective put, converting it to a collar trade. This podcast compares this conversion...
Establishing Our Cost-Basis When Rolling Out-And-Up on 2 Different Days
One of our covered call writing exit strategies is rolling-out-and-up. We use this position management technique when our short call is in-the-money (ITM) as expiration approaches and we decide to retain the shares for the next contract month (or week). For example,...
BCI PODCAST 42 Why Was My OTM Put Exercised?
Watch Video: Listen To Audio Version: Out-of-the-money options are rarely exercised. There are rare exceptions. In this podcast, a real life example with Boeing (BA) is examined where we experienced such an aberration. The mechanics of exercise is discussed and the...
Spinoffs and Stock Splits: How Multiple Corporate Events Can Impact Share Price
Our covered call writing and put-selling positions can be radically impacted by corporate events. In July 2020, Match Group, Inc. (NASDAQ: MTCH) showed extreme price volatility due to 2 corporate events, a spinoff and a stock split. Price dropped from $105.00 to...
BCI PODCAST 41 Collar Trades When Call Strikes Move Deep In The Money
Watch Video: Listen To Audio Version: The collar trade is covered call writing with the addition of a protective put. This podcast will focus in on a scenario when the stock price moves well above the call strike using a real-life example with TEAM. Trade...
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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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.