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calculating covered call writing returns using the Ellman Calculator

Calculating 2-Month Returns When Rolling Out And Up

Options calculations will give us an accurate assessment of our covered call writing profits. It’s more meaningful to use percentages rather than dollar amounts when executing these calculations. For example, a $1000.00 profit on a $10,000 investment (10%) is much more significant than a $1000 return on a $100,000 investment (1%). That’s why percentages forms […]

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covered call writing and option value

Am I Losing Money When Option Value Increases After Entering A Covered Call Position?

The risk in covered call writing is in the stock purchased not in the option sold. Sound familiar? It’s in all my books and DVD Programs and mentioned in my seminars and webinars. Yet it appears when we look at our brokerage statements that this concept is not true. That is because we see a […]

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Closing A Covered Call Writing Position Mid-Contract: A Real Life Example

The use of exit strategies will elevate our profits to the highest possible levels. Mastering the skill of position management is one of the main reasons why Blue Collar Investors outperform other covered call writers. A favorite exit strategy of mine is the mid-contract unwind exit strategy used in the first half of an options […]

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