Inverse Exchange-Traded Funds (ETFs) use derivatives to bet against the direction of financial markets. These are known as short or bear ETFs and will make money if markets decline in value. They will lose money, however, if markets move against the bet. Covered call writers who have a bearish market outlook may find these funds […]
How to Use Weeklys and the Premium Stock Reports for Covered Call Writing During Earnings Season
One of the three required skills for covered call writing and put-selling is the selection of the underlying security. Along with this we also must avoid quarterly earnings reports. Since most corporations report earnings in similar time frames (known as earnings season) the number of eligible candidates is dramatically reduced during these time frames. The […]
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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Using Puts and SelectSector SPDRs to Create an Ultra-Conservative Option-Selling Strategy
Selling out-of-the-money puts and using top-performing SelectSector SPDRs can be combined to design an extremely defensive option-selling strategy in a volatile market environment like we are currently experiencing. Using Inverse Exchange-traded Funds is another approach. In this article, we will discuss the former strategy,. When we sell an out-of-the-money cash-secured put we are agreeing to […]
ASHR: Exchange-Traded Fund in the Spotlight
Exchange-traded funds (ETFs) offer covered call writers and put-sellers the advantage of instant diversification and generally have a lower implied volatility associated with them compared to individual stocks. Whether we are dealing with stocks or ETFs each security must be evaluated on its own merit before using it as the underlying security. In this article, […]
Exchange-Traded Funds: Funding Option-Selling Portfolios With ETFs
For the strategies of covered call writing and selling cash-secured puts, we are selling the right, but not the obligation, to buy or sell 100 shares of the underlying security. That security can be a stock or and exchange-traded fund (ETF). In this article, I will highlight ETFs and demonstrate a few approaches to funding […]
Why Covered Call ETFs Under-Perform
With the popularity of covered call writing and selling cash-secured puts growing in popularity, we have witnessed the creation of new exchange-traded funds based on these strategies. Over the last few years I have not been a proponent of these securities mainly because they under-perform the overall market and motivated retail investors can do so […]
ETF Option Trading vs. Index Option Trading
Most options traders including covered call writers are familiar with exchange-traded funds (ETFs) and many trade options on these securities. Many have also heard of, but are not as familiar with, index options. The purpose of this article is to detail the differences between ETF option trading and index option trading. Definitions Exchange-traded fund (ETF): […]
Writing Covered Calls On Broad Market Exchange-Traded Funds
The initial main step for covered call writers is to select the best underlying security. This choice will vary from investor to investor based on goals and risk tolerance. Some of our members prefer exchange-traded funds (ETFs), a strategy I use in my mother’s portfolio. ETFs offer the advantages of instant diversification, less volatility (in […]
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The New Stock Market- Algorithmic and High Speed Trading
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Options That Expire Weekly and Conventional Expiration Cycles
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Why the 3% Guideline Applies to Puts but Not to Call Options
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Earnings Pre-Announcements Explained and Categorized
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Tax Implications of Writing Covered Calls against Long-Term Holdings
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Harry Alan do you have a mental point that you would sel
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Alan Ellman Harry, Much of the information you are seeking
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