Several studies have been undertaken to determine the effectiveness of the covered call writing strategy. I believe that it is important to evaluate the parameters that are used as well […]
The CBOE BuyWrite Index (BXM) vs. The BCI System
Posted on June 22, 2013 by Alan Ellman in Investment Basics, Option Trading Basics, Stock Option Strategies
Special 1- Time Cash Dividends and Our Covered Call Positions
Posted on June 15, 2013 by Alan Ellman in Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
Every so often we will see a company declare a “special dividend” which is separate from the typical recurring dividend cycle, if there is one. It is frequently a reflection […]
Examining A Covered Call Trade
Posted on June 1, 2013 by Alan Ellman in Covered Call Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
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 […]
Stock Option Expiration Cycles: Beware Of Expiration Dates
Posted on May 25, 2013 by Alan Ellman in Investment Basics, Option Trading Basics
In the BCI methodology for covered call writing we use predominantly 1-month options. The reasons are as follows: Generate the highest annualized returns Allows us to avoid earnings reports, a […]
Covered Call Writing: The Case For 1-Month Options
Posted on March 30, 2013 by Alan Ellman in Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
I sell predominantly 1-month options when selling covered calls. This decision was NOT based on anything I read or was told, but rather on experience and common sense. Most stocks with […]
Covered Call Writing – Fundamental and Technical Analysis: Earnings and Price Strength Analysis
Posted on March 23, 2013 by Alan Ellman in Fundamental Analysis, Investment Basics, Stock Investing
Successful covered call writing requires discipline and appropriate analysis specific for this great strategy. In the Blue Collar Investor (BCI) methodology we incorporate three major screening components before we even […]
The 10 Most Common Mistakes Made By Covered Call Writers And How To Avoid Them
Posted on February 16, 2013 by Alan Ellman in Covered Call Exit Strategies, Fundamental Analysis, Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies, Stock Trading & Taxes
Your neighbor bursts into your house and exclaims “I just read this article…You buy a stock and sell an option and cash flows into your account instantly. It’s a miracle! I’m getting […]
Margin Accounts and Covered Call Writing
Posted on February 7, 2013 by Alan Ellman in Investment Basics, Option Trading Basics, Options Calculations, Stock Investing
Can covered call writing profits be leveraged to even higher levels using margin accounts? In real estate investing, the concept of leveraged investing is well known and documented in such […]
What Is Slippage And How Does It Impact Our Trading Success?
Posted on December 29, 2012 by Alan Ellman in Investment Basics, Option Trading Basics, Stock Investing, Stock Option Strategies
When studying investment basics, the term slippage has two applications. In general, it means having a trade executed at a price less favorable to the trader. Let’s look at the […]
Covered Call Writing and Exchange-Traded Funds
Posted on December 1, 2012 by Alan Ellman in Exchange-Traded Funds, Investment Basics, Stock Option Strategies
A critical requirement of my covered call writing system is to be properly diversified by stock, industry and cash allocation. No one stock or industry should represent more than 20% […]
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Podcast
- BCI PODCAST 122: Should I Roll-Out My Deep In-The-Money Call Option Mid-Contract?
- BCI PODCAST 121: What is a SPAC (Special Purpose Acquisition Company)?
- 120. Using the Nasdaq-100 Volatility Index (VOLQ) in Covered Call Writing Decisions
- 119. Establishing Our Cost-Basis for Long-Term Holdings
- 118. Adjusting Our Portfolio Mix to Achieve Diversification and Cash Allocation
- 117. When a Covered Call Strike Moves $1000.00 In-The-Money
- 116. How to Execute a Covered Call Trade with a Buy/Write Combination Form
- 115. Establishing Our Cost Basis When Rolling-Out-And-Up On 2 Different Days
- 114. The Poor Man's Covered Call Selecting the Best LEAPS Strikes
- 113. How to Select the Best Strikes for Collar Trades
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- Annualized Returns for Weekly and Monthly Options
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Beginners Corner Enhanced & Updated
- Lesson 1: Beginner's Corner for Covered Call Writing: 2nd Edition
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- Lesson 3: Beginner's Corner for Covered Call Writing- Stock Selection
- Lesson 4: Beginner's Corner for Covered Call Writing-2nd Edition
- Lesson 5: Beginner's Corner for Covered Call Writing
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Beginners Corner Selling-Puts
- Lesson 1: What Is Puts Selling?
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- Lesson 5:puts-selling-Calculating Returns
- Lesson 6:puts-selling-Executing Put-Selling
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