Latest Insights in Stock Market Investing
When Call Strikes Move Deep In-The-Money Early in the -Contract: A Real-Life Example with BLK
Exit strategies for covered call writing is the 3rd required skill that must be mastered to achieve the highest possible returns. In January 2020, a member shared with me a trade she executed with BlackRock, Inc. (NYSE: BLK). The stock was trading at a cost-basis of...
BCI PODCAST 20. Rolling Down When There is a General Market Decline
Watch Video: Listen To Audio Version: Covered call writing skills include stock selection, option selection and position management. This podcast shows a substantial market decline resulting in stock price depreciation. Buy-to-close limit orders, rolling-down and...
BCI PODCAST 19. Using the Ellman Calculator to Monitor “Hititng a Double” Trades
Watch Video: Listen To Audio Version: Exit strategies for covered call writing include buying back and re-selling the option in the same month with the same stock. The progress of the 3 components of these trades can be monitored using the multiple tab of the Ellman...
BCI Podcast 3. Converting Non Dividend Stocks to Dividend Stocks
Watch Video: Listen To Audio Version: How to convert stocks that don't generate dividends into dividend-like securities by writing 4 covered call trades per year. The strategy can also be used to enhance the dividends already generated by the stock. BECOME A BCI...
Analyzing Buy/Write Net Debit Limit Orders
Covered call writing trades can be entered by legging-in (buy stock and then sell option) or as a buy/write trade (one net debit limit order). In the latter order, the option premium is deducted from the stock price and the broker is required to execute the trade and...
Creating a Portfolio of Weekly Cash-Secured Puts
Selling cash-secured puts is a strategy similar to, but not precisely the same, as covered call writing. In February 2020, Chevy wrote to me asking for an article or video addressing weekly cash-secured puts, a strategy he was using and looking to enhance. The...
BCI PODCAST 18. Market Assessment Analysis Based on Portfolio Composition
Watch Video: Listen To Audio Version: A lot can be gleaned regarding an investor's market outlook based on the positions within the option-selling portfolio. Underlying stocks, option strikes and calculations all play roles in our trade decisions. A portfolio of...
BCI PODCAST 17. COMBINING Covered Call Writing and the Stock Repair Strategy
Watch Video: Listen To Audio Version: Exit strategy opportunities will help mitigate losses, turn losses into gains and enhance profits. When share price declines, there is a series of position management techniques available to us that can be implemented. This...
BCI Podcast 16. VIX Covered Call Writing Selling Stock Options on Market Volatility
Watch Video: Listen To Audio Version: Can we take advantage of market volatility and write options on the CBOE Volatility Index? This podcast will address VIX futures contracts, the exchange-traded note (ETN) VXXB, synthetic stock positions as means of taking...
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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.
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