The Collar Strategy is a covered call writing-like strategy where a protective put is added to the trade, thereby establishing a floor and a ceiling with a maximum gain and […]

Collar Calculations Using the BCI Trade Management Calculator
Posted on September 16, 2023 by Alan Ellman in Covered Call Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies

When Should I Take My Profits with a Successful Covered Call Writing Trade?
Posted on September 9, 2023 by Alan Ellman in Covered Call Exit Strategies, Exchange-Traded Funds, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
Which %, if any, of our original covered call writing initial time-value return, should we use to close both legs of the trade, and guarantee a realized return? 60%? 75%? […]

Using Technical Analysis for Our Stock & Option Selection in Covered Call Writing Trades
Posted on September 2, 2023 by Alan Ellman in Fundamental Analysis, Investment Basics, Option Trading Basics, Stock Option Strategies, Technical Analysis
In our BCI methodology, we have a 3-pronged approach to stock selection for our covered call writing trades: Fundamental analysis Technical analysis Common-sense principles (minimum trading volume, avoiding earnings reports, […]

How Our Covered Call Trades are Impacted When Regular and Special 1-Time Cash Dividends Come on the Same Day
Posted on August 26, 2023 by Alan Ellman in Fundamental Analysis, Investment Basics, Option Trading Basics, Stock Investing, Stock Option Strategies, Stock Trading & Taxes
The parameters of our covered call trades are often changed when certain corporate events result in option contract adjustments. These events include stock splits, mergers & acquisitions as well as […]

Comparing Covered Call Writing & Cash-Secured Puts in Bull Market Environments
Posted on August 19, 2023 by Alan Ellman in Covered Call Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
Covered call writing versus cash-secured puts in bull markets … which is better? This article will present the arguments for both and make a case why I prefer covered call […]

Selecting the Best LEAPS Strike for an AAPL Poor Man’s Covered Call Trade
Posted on August 12, 2023 by Alan Ellman in Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
The Poor Man’s Covered Call (PMCC) is a covered call writing-like strategy where deep in-the-money (ITM) LEAPS options replace the long stock positions. LEAPS have expirations of greater than 1 […]

What is the Single Best Delta to Use When Selecting My Covered Call Writing Strikes? Answer: None
Posted on August 5, 2023 by Alan Ellman in Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
This is one of the most frequently asked questions I receive from covered call writers all over the world. Should I use a 40-Delta? 35-Delta? Higher? Lower? The focus is […]

The Collar Strategy: 2 BCI Spreadsheets: A Real-Life Example with Crocs, Inc. (Nasdaq: CROX)
Posted on July 29, 2023 by Alan Ellman in Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Put-selling, Stock Option Strategies
The collar strategy is a covered call writing-like strategy where a protective put is added to the covered call trade, creating a 3-leg trade. BCI has developed 2 calculators that […]

How to Create 3-Income Producing Portfolios Using Covered Call Writing and Dividend Generating Stocks
Posted on July 22, 2023 by Alan Ellman in Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
Covered call writing is a low-risk cash-flow strategy that can also create the potential of a 2nd income stream when using out-of-the-money (OTM) strikes which can also produce potential income […]

Selling Cash-Secured Puts: Part II
Posted on July 15, 2023 by Alan Ellman in Investment Basics, Option Trading Basics, Options Calculations, Put-selling, Stock Option Strategies
In our last blog publication, 2 put applications were discussed: traditional put-selling and the PCP (wheel) Strategy. In this week’s article, 3 more approaches will be reviewed. Selling cash-secured puts: […]
Podcast
- 114. The Poor Man's Covered Call Selecting the Best LEAPS Strikes
- 113. How to Select the Best Strikes for Collar Trades
- 112. Using Covered call Options and Stock Dividends in Low Interest Rate Environments
- 111. Rolling Down on a Sharp Market Decline at the end of a Contract
- 110. Exit Strategies Are Important But Must Be Timed Properly
- 109. Delta and Strike Selection for Covered call Writing
- 108. Establishing Our Cost Basis in a Multi Step Managed Trade
- 107: Even and Odd Stock Splits Understanding Contract Adjustments
- 106. "Hitting a Double" with Procter & Gamble: A Covered Call Writing Exit Strategy
- 105. The Poor Man's Covered Call: Rolling Options
Subscribe To Our Free Newsletter
Categories
- Ask Alan (15)
- Covered Call Exit Strategies (226)
- Exchange-Traded Funds (63)
- Exit Strategies (220)
- Fundamental Analysis (46)
- Investment Basics (562)
- Just Alan (8)
- Option Trading Basics (577)
- Options Calculations (396)
- Options Trade Execution (218)
- paper trading (4)
- Podcasts (115)
- Put-selling (92)
- Stock Investing (116)
- Stock Option Strategies (530)
- Stock Trading & Taxes (20)
- Technical Analysis (48)
- Uncategorized (22)
Recent Posts
Premium Membership
How Alan Got Started with Stock Options
Why Covered Call Options May Be Your Best Investing Strategy
Nasdaq Interviews Alan Ellman
© 2020 The Blue Collar Investor. All Rights Reserved.
Beginners Corner Enhanced & Updated
- Lesson 1: Beginner's Corner for Covered Call Writing: 2nd Edition
- Lesson 2: Beginner's Corner for Covered Call Writing- 2nd Edition: Option Basics
- 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
- Lesson 6: Beginner's Corner for Covered Call Writing
- Lesson 7: Beginner's Corner for Covered Call Writing: 2nd Edition
- Lesson 8: Beginner's Corner for Covered Call Writing
- Video 9: Premium Membership
Beginners Corner Selling-Puts
- Lesson 1: What Is Puts Selling?
- Lesson 2: Puts-Selling Option Basics
- Lesson 3:puts-selling-technical analysis
- Lesson 4:puts-selling-Common Sense Considerations
- Lesson 5:puts-selling-Calculating Returns
- Lesson 6:puts-selling-Executing Put-Selling
- Lesson 7:puts-selling- Exit Strategies
- Lesson 8:puts-selling-Mastering Put-Selling
Recent Comments