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exit strategies for covered call writing

Should I Roll My Option When The Stock Price Is DEEP In-The-Money?

Exit strategy execution is a critical skill every covered call writer should master. In addition to managing positions where share price has decreased there are also situations where we can benefit when price has dramatically accelerated. Let’s look at a trade recently executed by one of our Premium Members: Our member generated a nice 1-month […]

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Covered Call Writing In India

I recently learned that covered call writing comes in all shapes and sizes. Although we are honored to have a significant number of international members, most trade US stocks on US exchanges with the rules we are familiar with. But what if the rules were different? Let’s look at baseball for a minute. What if […]

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Covered call writing profits

Setting Up Your Covered Call Portfolio Using The Ellman Calculator

Covered call writing involves options calculations…there’s no getting around it!  It’s been a while since we talked math. What’s with all the frowns? Mastering and understanding the calculations (The Ellman Calculator will do all the work) will enhance our bottom lines…more cash in our pockets. With that in mind, let’s set up a hypothetical portfolio of […]

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Why some in-the-money strikes are not exercised

Why Some In-The-Money Strikes Are NOT Exercised; A Real Life Example

When studying the basics of option investing we learn that the option holder of an in-the-money strike has a certain amount of intrinsic value which appears to be profit that would never be bypassed. For example, if we (as covered call writers) sold a $50 call and the stock was trading @ $52 @ 4PM […]

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Covered Call Trade Execution

Executing Covered Call Trades: The Buy-Write Combination Form.

There are two ways to enter a covered call position. The first is called legging-in where the stock is purchased and then the option is sold. Two distinct trades are executed. The second is known as a buy-write order where the security purchase and option sale is entered as one trade with a net debit […]

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How Our Trade Orders Are Executed For Covered Call Writing

Executing our stock and call option trades is fast and efficient. But what actually goes on behind the scenes after we enter market or limit orders? Once we type our order to the online discount broker there are a series of events that take place terminating in the successful execution of the trade. Here’s how […]

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Playing the Bid-Ask Spread When Selling Covered Call Options

An integral aspect of our options trade executions is to sell at the “bid” and buy at the “ask”. Many times we can “negotiate” the bid to a higher price or the ask to a lower price. Would you like to earn $50 in 50 seconds? Why not learn how to play the bid-ask spread? […]

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Analyzing a Covered Call Trade by Barry Bergman, Director of Research, The Blue Collar Investor Corp.

Covered call writing trades can be analyzed from many perspectives. Each analysis represents an enlightening experience as we all learn from each other and share ideas and conclusions. We recently received a series of emails from one of our more experienced and savvy premium members regarding several trades he executed a short while ago. I asked […]

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Covered Call Writing: Types of Customer Orders

Executing covered call trades begins when we instruct our online discount brokers what we want them to do for us. When instructing our online discount broker as to the actions we want taken, we submit a customer order. These orders can take several different forms depending on our investment strategies and objectives. We can buy […]

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Types of Customer Orders plus Update on BCSI

When instructing our online discount broker as to the actions we want taken, we submit a customer order. These orders can take several different forms depending on our investment strategies and objectives. We can buy or sell; request a specific price or simply the best available price; we can stipulate an action given a particular […]

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