Oct 1, 2022 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Trade Execution, Put-selling, Stock Option Strategies
When we sell cash-secured puts, we are undertaking the contractual obligation to buy shares at the strike price by the expiration date. The option seller (that’s us) sets those parameters. In return, we receive a cash premium. The implementation of exit strategy...
Sep 24, 2022 | Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Put-selling
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...
Sep 17, 2022 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
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...
Sep 10, 2022 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
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...
Sep 3, 2022 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
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...
Aug 27, 2022 | Exchange-Traded Funds, Fundamental Analysis, Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
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...