Latest Insights in Stock Market Investing
Using the Zero-Dollar Collar to Protect Greatly Appreciated Shares
click ↑ 4 Featured We can use put options as a hedge against share price decline of our long stock positions. This may be particularly useful after exponential price acceleration, and we want to protect our unrealized gains. This would represent an insurance policy...
How to Set Up a Defensive Cash-Secured Put Trade in Challenging Market Conditions
click ↑ 4 Featured Cash-Secured Put and covered call trades can be established as traditional, aggressive or defensive. In March 2025, there was market uncertainty regarding the imposition of multiple tariffs and their potential negative impact on our economy and the...
BCI PODCAST 154: Selling Cash-Secured Puts Exit Strategies: The 3% Guideline
When selling cash-secured puts, exit strategies are an integral part of our goal to achieve maximum success. The 3% guideline assists us in determining when to close the short call if share price declines significantly. A real-life example with NVDA is used and...
How To Negotiate Better Option Prices Using The “Show or Fill Rule”
click ↑ 4 Featured Covered call writers & sellers of cash-secured puts generate cash flow by selling options, leveraging elite-performing stocks and ETFs. Options prices are published in option chains in the form of bid-ask spreads. We sell at the “bid” price and...
Selling Calls & Puts with the Same Stock in Mixed Market Conditions
click ↑ 4 Featured Covered call writing and selling cash-secured puts trades can be structured to be more aggressive (out-of-the-money-OTM) covered calls and slightly OTM cash-secured puts or to lean defensive (in-the-money- ITM) covered calls and deep OTM...
BCI PODCAST 153: Closing a Covered Call Trade Mid-Contract
Exit strategies are a critical component to achieving the highest level of option trading success. This podcast will focus in on a situation where share price of the underlying security rises exponentially causing the time-value component of the premium to approach...
Using Bitcoin to Create a Low-Risk, High Initial Return Cash-Secured Put Trade
click ↑ 4 Featured The most well-known form of cryptocurrency is Bitcoin. I am frequently asked about the use of crypto with our covered call and cash-secured put trades. In this article, a 1-week cash-secured put trade is analyzed, using Bitcoin, to construct a...
Option Greeks as They Apply to Covered Call Writing & Cash-Secured Puts + 2 New Videos
click ↑ 4 Featured The option Greeks are financial metrics that are used by traders to evaluate the risk of our option contracts as well as how option price changes as it related to the price of the underlying security. This article will review the option Greeks with...
ITM Calls & OTM Puts: Similar Returns & Breakeven Price Points + Holiday Discount Coupon
click ↑ 4 Featured When seeking a defensive posture to our covered call writing and cash-secured put trades, we use in-the-money (ITM) calls and deep out-of-the-money (OTM) puts. We must always determine our initial time-value return goal range before crafting our...
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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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