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Ask Alan #140 – “Holding a Stock Through an Earnings Report”

Alan answers a question posed by Frank, who asks: Broadcom (AVGO) has been on a tear since January and I plan to hold it through next week’s earnings report (6/1 after market closes). Would it make sense to write a covered call after the report passes for the June contract or wait for the start […]

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2016 New Year’s Greeting & Resolutions from The Blue Collar Investor

Alan Ellman reviews his resolutions and the positives for BCI, and continues on towards expectations for 2016: ” This year’s resolution is being thankful for all the support of the BCI community and team. I realize that I could have never done this without your support, thank you because of you my dream has been […]

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Protected: Ask Alan #115- “Differences between Call and Put Premiums

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A look back at the FIRST Ask Alan Video…

As we’re approaching the 60th episode in the Ask Alan series we thought we’d take a look back at the video that launch it all. In episode #1 Alan answered to Q of Karen from Marietta, GA who asked: “Should the low open interest and large bid ask spread deter me from using the $15 […]

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Ask Alan – Early Exercise of Covered Call Options

Alan answers a question from Scott of Los Angeles, CA. Scott asks, “At the beginning of a contract period you sell a $40 out-of-the-money call after purchasing the stock for $38. The stock goes up quickly within a few days with 25 days left in the period. Say the stock is now trading at $41,50, […]

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Ask Alan – Finalizing Our Covered Call Watch List and Stock Selection

Alan answers a question fromJosh of Walnut Creek, CA. Josh writes… "I’m an experienced, fundamentally oriented, value investor, but over the years I’ve migrated more and more towards quantitative stock selection methodologies. I believe I have a solid understanding of your process and would like to ask two follow-up questions. First, do you do any […]

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Ask Alan – Low Open Interest & Large Bid Ask Spread

Alan answers a question coming from Karen of Marietta, GA. Karen writes… I recently purchased LivePerson, ticker symbol LPSN for $17.49. The $15 strike has a low open interest of 32 and a large, bid ask spread of $0.45. The $17.50 strike has a much larger open interest of $300 and a smaller bid ask […]

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Ask Alan – Delta and Covered Call Writing

Alan answers a question coming from Andrew of Marblehead, MA. Andrew writes… "I was watching JP Morgan when it was trading at $33.75, and the August $34.00 call was at $0.93. After taking a phone call, the stock price was up $0.65 to $34.40, but the call option increased only $.35 to $1.28. Does this […]

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Ask Alan – Calculating the Target Price of a Stock

Alan answers a question coming from Dana of Ocala, FL. Dana writes… "My friend said that to compute the target price for Apple Computer you should multiply it by the forward P/E ratio of 11.57 and the earnings per share of 44.16, and that will leave us with a future price of $510.93. However, Yahoo […]

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Ask Alan – When to Enter Your Covered Call Trades

Alan answers a question coming from Ron of Milwaukie, OR. Ron writes… "Will you enter a position when the market is in general decline, or when the futures are down and you know that the market will gap down at open? In other words, will you enter a position overnight or wait until the market […]

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