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rolling out and covered call writing

Rolling Weekly Options & Covered Call Writing

The stock option strategies in our BCI methodology are based on years and decades of real-life trading experience. The information detailed in my books and DVDs is geared to giving us the best chance to achieve the highest possible covered call writing returns. This article is different. It is meant to start a conversation and […]

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Technical analysis and covered call writing

Technical Analysis and Covered Call Decisions: Looking Back At KORS

Technical analysis is an integral part of our covered call writing decisions for both stock and option selections. It also impacts our exit strategy decisions. KORS has been a favorite of Blue Collar Investors for quite some time as a frequent member of our Premium Stock List. For the week of September 16th through the […]

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Portfolio overwriting and ex-dividend dates

Using Covered Call Writing To Increase The Returns From A Buy And Hold Portfolio: Part II

Last week I wrote Part I of an article on portfolio overwriting, a covered call-like strategy for buy and hold portfolios. In today’s article I will walk you through the process of how this strategy can be accomplished. Keep in mind that there are many ways to approach any given strategy, this is one of […]

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portfolio overwriting and ex-dividend dates

Using Covered Call Writing To Increase The Returns From A Buy And Hold Portfolio: Part I

Covered call writing is a conservative strategy that encompasses a great deal of inherent application flexibility. In my first 3 books and DVD Programs I have discussed the use of LEAPS as a stock surrogate, protective puts, the use of cash-secured puts to enter a covered call trade at a discount and portfolio overwriting. In […]

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P&L graph showing the importance of exit strategies when covered call writing

Profit And Loss Graphs For Covered Call Writing

Covered call writing, like most investment strategies, has a certain risk/reward profile relating to potential profits and losses. A profit and loss graph  is a  graphical representation of the potential outcomes of this or other strategies. Let’s first have a look at a generic P&L graph: Components of a P&L graph Vertical axis represents the […]

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In-the-money strikes and early exercise

When And Why Will My In-The-Money Strike Be Exercised?

Covered call writers receive option premiums for undertaking the obligation to sell our shares to the option holder if that holder decides to exercise that right. Understanding when and why exercise will take place is critical to the implementation of appropriate exit strategies and therefore maximizing our option and stock profits. Let’s first look at […]

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OTO: one triggers other order

Covered Call Writing: Setting Up A Stop Loss Order

Successful covered call writing requires the appropriate use of exit strategies to mitigate losses and enhance gains. In today’s article, we will focus on actions that can be taken when a stock price declines and capital preservation becomes a concern. Once we enter our covered call position we are in two distinct trades. We are long […]

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Why Use Technical Analysis: An Example Of A Complete Technical Breakdown

Technical analysis or fundamental analysis…which should we use in the stock selection process for covered call writing? Many sophisticated investors can make an impressive argument for one or the other. I say why not use both? As most of you know, in the BCI methodology we use actually three types of screens: fundamental analysis, technical […]

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Covered call writing using the Blue collar Investor methodology

Examining A Covered Call Trade

Mastering covered call writing requires us to learn from our mistakes and not repeating them. We can then utilize a series of guidelines and rules that will guide us to the highest possible returns with the least amount of risk. Maximizing profits with capital preservation in mind is what the BCI methodology is all about. […]

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exit strategies for covered call writing

Should I Roll My Option When The Stock Price Is DEEP In-The-Money?

Exit strategy execution is a critical skill every covered call writer should master. In addition to managing positions where share price has decreased there are also situations where we can benefit when price has dramatically accelerated. Let’s look at a trade recently executed by one of our Premium Members: Our member generated a nice 1-month […]

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