Latest Insights in Stock Market Investing
When Our Covered Call Strike Moves $1000.00 In-The-Money
This really happened. From March to August 2020, many of the large cap technology stocks were on fire. Thor shared with me a covered call trade he executed with Amazon.com, Inc. (NASDAQ: AMZN) where the strike moved $1000.00 in-the-money (ITM) as share price headed to...
BCI PODCAST 47 Rolling Up in the Same Contract Month
Watch Video: Listen To Audio Version: Position management is a critical aspect of covered call writing success. The key is to identify when these opportunities present and how and why to implement them. There are times when no action is the best choice. In this...
Adjusting Our Portfolio Mix to Achieve Diversification and Cash Allocation
To decrease portfolio risk for our covered call writing and put-selling portfolios we must be well diversified and allocate a similar amount of cash per position. The allotment of cash per-position will rarely be precise but it is a goal we must incorporate into our...
BCI PODCAST 46 Should Delta Be the Sole Criteria for Covered Call Writing Strike Selection
Watch Video: Listen To Audio Version: I am often asked, "What Delta should I use for my covered call strikes?" This podcast discusses how strategy goals, not Delta stats, should impact our option strike selections. Initial time-value return goal range, market...
Establishing Our Cost-Basis for Long-Term Holdings
When we initiate a covered call trade by first buying a stock and then selling a call option, our cost-basis, in the BCI methodology, is the lower of the stock price or strike price. If we sell an in-the-money (ITM) strike, we deduct the intrinsic-value component of...
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...
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.