Alan answers a question posed by Vinh, who asks: Alan, I am new member. I would like to ask how much Delta to use to enter a covered call trade for in-the-money strikes to get adequate protection. I am looking at AMD trading at $50.10 for the July 17, 2020 contracts. Thanks, Vinh ——— It’s […]
ASK ALAN #181 How Delta Factors into our Strike Price Selection
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Ask Alan #167 What is “Seeking Alpha?”
Alan answers a question posed by Mary, who asks: Alan,Alan, I follow the site Seeking Alpha as well as your BCI site. Can you give your thoughts on how the BCI methodology seeks to beat the market? I’m really enjoying your material. Thanks, Mary ——— It’s the 2nd Wednesday of the month. Time for another […]
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 […]
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 […]
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, […]
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 […]
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 […]
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 […]
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 […]
Podcast
- 99. Anatomy of a Reverse Stock Split
- 98. Analyzing LEAPS Options for the Poor Man's Covered Call
- 97. Managing Our Poor Man's Covered Call Trades When Share Price Drops Substantially
- 96. Protecting Our Covered Call Trades: Protective Puts and In-the-Money Strikes
- 95. Covered Call Writing to Generate Premium and Dividend Income
- 94. Covered Call Writing Net Debit Limit Orders
- 93. WHEN CALL STRIKES MOVE DEEP ITM EARLY IN A CONTRACT
- 92. Selling Deep OTM Cash-Secured Puts to Create High-Probability Returns
- 91. Portfolio Overwriting Analyzed
- 90. Entering a Collar Trade
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