Latest Insights in Stock Market Investing
Blackjack and Covered Call Writing: Throwing the Odds in Our Favor with PayPal Holdings Inc. (NASDAQ: PYPL)
Covered call writers and all investors using stock options strategies have one thing in common: we all want to achieve the highest possible returns within the framework of our own personal risk tolerance. The focus of this site and The Blue Collar Investor is to...
Rolling Out-And-Up: Explaining “Bought-Up” Value
Covered call writing calculations should be as accurate as possible so that we can assess the success and feasibility of our trades. When we roll in-the-money (ITM) options out-and-up there is frequently an option debit which, on first glance, may make the trade...
Interpreting Exit Strategy Calculations Versus Final Calculations
Mastering option calculations is an essential skill needed to attain the very highest covered call writing returns. Although the Ellman Calculator will do most of the heavy lifting for us, understanding the reasons behind these calculations and when and how to apply...
Covered Call Writing with a Biotech Company: A Real-Life Example with Argenx (NASDAQ: ARGX)
Covered call writing (as well as put-selling) premiums are directly related to the implied volatility of the underlying stock or exchange-traded fund (ETF). Biotech stocks are particularly volatile due to the success (or lack thereof) of the pharmaceuticals they are...
In-The-Money Covered Calls: Intrinsic Value Protects Time Value: A Real-Life Example with TEAM + New Tool Coming Soon
Meaningful option calculations are essential in determining if the premiums meet our covered call writing goals. To this end, we must understand the mathematics of these calculations to become elite option-sellers. Now don’t worry…we don’t have to become Albert...
Structuring a Poor Man’s Covered Call Trade with The Coca-Cola Company
The Poor Man's Covered Call (PMCC) is a covered call writing-like strategy where short calls are sold against LEAPS options. There are pros and cons to this trading approach but the main advantage is that these trades can be executed at a lower cost than traditional...
Cash-Secured Call Options
One of our favorite option-selling strategies is selling cash-secured puts. This involves selling (usually out-of-the-money) put options and securing the possible future contract assignment with the appropriate amount of cash. What about cash-secured call options also...
Let’s Take a Test: Can You Answer Correctly?
Stock options is a category found in required examinations for certified financial planners. In May 2019, Richard contacted me because he was "miffed" at one of the answers provided for one of the questions in the CFP financial planner test question databank. I...
Stock Repair Strategy: Breakeven Versus Loss-Reduction Objectives
Call options can be used to reduce losses on long stock positions. Depending on the degree our share value has declined, our target can be to lower our breakeven point or to lock-in but reduce losses. In December 2018, Sunny shared a stock repair trade he was...
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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Covered Call Exit Strategies
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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.