Whether we are selling stock options or buying stocks to accumulate dividend income, Blue collar Investors seek to generate cash-flow in a low-risk manner with capital preservation in mind. This article will highlight 1 way to combine selling cash-secured puts with dividend stripping. What is selling cash-secured puts? A low-risk option-selling strategy where the […]
How to Manage a 5.3% Mid-Contract Unrealized Gain: A Real-Life Example with BHP Group Limited (NYSE: BHP) + Alan’s Wealth365 Webinar Registration Link
When we have a maximum mid-contract unrealized gain on a trade, there are opportunities when we can generate additional income streams and, thereby, enjoy higher than initial maximum returns. There are also scenarios when we should take no action and continue to monitor these trades. On 1/19/2022, Patrick shared with me such a trade he […]
How to Enter Our Rolling-Out-And-Up Trades into Our Monthly Trading Logs
In our last blog article, we discussed how to enter our rolling-out trades into our covered call writing trading logs. This article will highlight the additional considerations when rolling our covered call trades out-and-up. Trade log challenges when rolling-out-and-up We are combining 2 months of option premiums: how do we break this down? What […]
How to Enter Our Rolling-Out Trades into Our Monthly Trading Logs
When we roll-out our covered call trades, we are actually combining 2 months of option premiums, the current month and the next contract cycle. This may create some confusion as how to enter these combination trades into our trading logs. As you will see, there is no perfect solution, but BCI has created guidelines that […]
Comparing Nasdaq 100 ETFs: Real-Life Examples with QQQ & QQQM
Over the years, the most frequently used ETF in my portfolios has been Invesco QQQ Trust (Nasdaq: QQQ). Premium members have noticed that, lately, a relatively new eligible security in our Premium Members ETF Reports has been QQQM (Invesco Nasdaq 100 ETF). Both are based on the Nasdaq 100 Index. This article will highlight the […]
Technical Analysis and Our Option-Selling Portfolios: A Real-Life Example with Matador Resources Company (NYSE: MTDR)
BCI has a 3-pronged approach to screening for our covered call writing and put-selling watchlists. These include fundamental analysis, common-sense principles (like minimum average trading volume) and technical analysis. When we read a price chart, we are forming a mosaic of several technical parameters and then coming to a pass/fail decision. There is a degree […]
Will My Stock Be Sold Because of the $2.00 Dividend? A Real-Life Example with Star Bulk Carriers Corp. (Nasdaq: SBLK)
On 2/21/2022, Bob wrote a 3/17/2022 $29.00 call on SBLK. On 2/26/2022, SBLK was trading at $31.76 and the cost-to-close the short call was $2.78. On 3/1/2022, SBLK was going ex-dividend for an eventual $2.00 per-share distribution. Will Bob’s shares be sold the day prior to the ex-date? Case for early exercise Ex-dividend dates […]
Covered Call Writing & Selling Cash-Secured Puts: Strategies or Exit Strategies? A Real-Life Example with T-Mobile US Inc. (Nasdaq: TMUS)
Covered call writing and selling cash-secured puts are low-risk option-selling strategies seeking to generate weekly or monthly cash-flow. Can these basic strategies be considered exit strategies as well? In this article, I will make the case that, yes, they can be considered both. When is covered call writing an exit strategy? After selling a […]
Rolling-In Covered Call Trades + New Book Discount Offer Expiring
Exit strategy implementation is a critical aspect of successful covered call writing and put-selling strategies. Over the years, we have discussed rolling options as an integral part of our position management arsenal. This article will detail a new rolling strategy… rolling-in. Rolling definitions Rolling-up: Close out options at a lower strike and open options […]
How to Enter Our Rolling-Out Cash-Secured Put Trades into Our Trading Logs + New Book Discount Offer
When we roll-out a cash-secured put trade, we are spanning 2 contract cycles. This article will detail how to enter and close our trades into our trading logs to best reflect the results over multiple time frames. What is rolling-out an ITM put strike? This is where we buy back (buy-to-close or BTC) the […]
Podcast
- 88. Creating a Portfolio of Weekly Cash-Secured Puts
- 87. Bear Market Concerns and Our Option Selling Portfolios
- 86. How to Use Technical Analysis and Market Assessment for Strike Selection
- 85. Automating the 20% /10% Guidelines for Covered Call Writing
- 84. Analyzing and Calculating Multi Leg Rolling Down Covered Call Trades
- 83. Setting Up a Portfolio of Nasdaq and S&P 500 Stocks in a User-Friendly Manner
- 82. Risky Stocks Can Result In Challenging Decisions
- 81. Managing ITM Covered Call Strikes When Share Price Moves Higher
- 80. Using the VIX to Achieve Higher Option-Selling Returns
- 79. Adjusting Target Goals with ETFs
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