Latest Insights in Stock Market Investing
Protecting Our Covered Call Trades: Protective Puts Versus In-The-Money Strikes
Covered call writing is a low-risk, cash-generating strategy. We can lower the risk to an even greater extent by purchasing protective puts and by writing in-the-money (ITM) call options. Now, buying protective puts (called the collar strategy when used in conjunction...
Managing a Poor Man’s Covered Call Trade When Share Price Drops Below the LEAPS Strike
A typical Poor Man's Covered Call (PMCC) trade involves buying a deep in-the-money call LEAPS option and selling short-term out-of-the-money call options which is protected by the long LEAPS position. In April 2020, Martin shared with me a PMCC trade he executed with...
How to set up a covered call writing portfolio using stock selection, option & position management
Watch Video: Listen To Audio Version: The Blue Collar Investor webinar Oct 15th: How to set up a covered call writing portfolio using stock selection, option & position management BECOME A BCI MEMBER TODAY: PREMIUM MEMBERSHIP SEE BCI COURSE & PRODUCTS : BCI STORE ...
Anatomy of a Reverse Stock Split
Option contracts can be standard or adjusted. Certain corporate events may change standard option contracts to adjusted contracts. These events include stock splits, mergers, acquisitions, special dividends, spin-offs and reverse splits. After these events, options...
Rolling Out-And-Up: 6-Week Returns
Option calculations help guide us to an accurate assessment of our covered call writing profits. It’s more meaningful to use percentages rather than dollar amounts when executing these calculations. For example, a $1000.00 profit on a $10,000.00 investment (10%) is...
BCI PODCAST 26. Selling Cash Secured Puts to Lower Cost Basis
Watch Video: Listen To Audio Version: Selling out-of-the-money (OTM) cash-secured puts creates an opportunity to "buy a stock at a discount" if the put option is exercised. If unexercised, we generate a monthly cash flow via the option premium. When one of our stocks...
BCI PODCAST 25. “Hitting a Double” with Procter & Gamble Covered Call Writing Exit Strategies
Watch Video: Listen To Audio Version: Managing our covered call writing trades is essential to achieving the highest possible returns. In this podcast the "hitting a double" exit strategy will be highlighted with a real-life example with Procter & Gamble. After...
BCI PODCAST 24. Using Covered Call Writing and Stock Dividends in Low Interest Rate Environments
Watch Video: Listen To Audio Version: Details a strategy with a potential of 3 income streams for each trade: one from share appreciation, another from stock dividend distribution and a third from option premium. Stock selection will come from the Dow 30, option...
BCI PODCAST 23. Covered Call Writing with Weekly Options Portfolio Overwriting with Weeklys
Watch Video: Listen To Audio Version: Covered call writing can elevate returns for long-term buy-and-hold portfolios trading in non-sheltered accounts. The use of Weekly options can be especially beneficial in these circumstances. This podcast also introduces the BCI...
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.