Portfolio Overwriting is covered call writing using existing long-term buy-and-hold securities. It implies low cost-basis shares, dividend-bearing stocks and exchange-traded funds (ETFs). Since we don’t want our shares called away […]
Strike Selection for Portfolio Overwriting Low Cost-Basis Stocks
Posted on September 29, 2018 by Alan Ellman in Investment Basics, Option Trading Basics, Options Calculations, Stock Investing, Stock Option Strategies
Establishing Our Option-Selling Goals: Total Portfolio Versus Individual Stock Perspectives
Posted on September 22, 2018 by Alan Ellman in Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
When selling covered call and put options we must first establish our initial time value return goals. We also should factor in upside potential when writing out-of-the-money call options and […]
Buying Low and Selling High Also Applies to Option-Selling
Posted on September 15, 2018 by Alan Ellman in Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
Covered call writers hold two positions. We are long (own) the stock and short (sold) the call option. It is intuitive to investors that it is to our advantage if […]
Rolling Out-And-Up And Then Stock Price Declines
Posted on September 1, 2018 by Alan Ellman in Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
Rolling our covered call trades involves multiple months of trading statistics. The calculations may be deceiving initially but on deeper analysis, rolling our options can represent an invaluable trading tool […]
Early Exercise Due to Dividend Capture: Theoretical and Practical Applications
Posted on August 25, 2018 by Alan Ellman in Exit Strategies, Investment Basics, Option Trading Basics, Stock Option Strategies
When we write a covered call option we are obligated to sell our shares at any time from the option sale to contract expiration if the option buyer decides to […]
Factors to Consider When Closing a Trade Early: A Real-Life Example with ATVI
Posted on August 18, 2018 by Alan Ellman in Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies
Exit strategies for covered call writing includes closing a trade when share price rises above the original strike price sold. When formulating these decisions, we must factor in the cost-to-close […]
Position Management in the Final Week of a Contract: A Real-Life Example with FIVE
Posted on August 11, 2018 by Alan Ellman in Covered Call Exit Strategies, Exit Strategies, Fundamental Analysis, Investment Basics, Option Trading Basics, Options Calculations, Stock Investing, Stock Option Strategies
Exit strategy preparation and implementation is one of the 3 required skills for successful covered call writing and put-selling. Because of the time value erosion of our options (Theta), there […]
Evaluating the Success of our Covered Call Trades
Posted on August 4, 2018 by Alan Ellman in Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
Whenever a covered call trade results in a maximum return, it is a successful trade…period…end of story. To most, this statement appears nonsensical and self-evident. But I’m here to tell […]
Understanding the Impact Implied Volatility has on Delta
Posted on July 28, 2018 by Alan Ellman in Investment Basics, Option Trading Basics, Stock Investing, Stock Option Strategies
For covered call writers and put-sellers, the option Greeks play a major role in our understanding of the risks and value of our option premiums. We know our option premiums […]
Is There Less Risk Using Deep In-The-Money Long Calls versus Covered Call Writing?
Posted on July 21, 2018 by Alan Ellman in Exit Strategies, Investment Basics, Option Trading Basics, Stock Option Strategies
“There is less risk using deep in-the-money (ITM) long calls than buying stock and selling the corresponding short calls”. That is the case John made to me when I received […]
Full Details: click here | Register: click here
4 larger view click here
Podcast
- 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
- 112. Using Covered call Options and Stock Dividends in Low Interest Rate Environments
Subscribe To Our Free Newsletter
Categories
- Ask Alan (18)
- Covered Call Exit Strategies (230)
- Exchange-Traded Funds (65)
- Exit Strategies (227)
- Fundamental Analysis (52)
- Investment Basics (577)
- Just Alan (8)
- Option Trading Basics (592)
- Options Calculations (409)
- Options Trade Execution (229)
- paper trading (4)
- Podcasts (123)
- Put-selling (99)
- Stock Investing (118)
- Stock Option Strategies (545)
- Stock Trading & Taxes (20)
- Technical Analysis (49)
- Uncategorized (5)
Recent Posts
- Annualized Returns for Weekly and Monthly Options
- Calculating Covered Call Writing & Cash-Secured Put Trades for the Same Stock and Similar Moneyness
- Ask Alan # 216: Establishing the Cost Basis of an Adjusted Covered Call Trade
- Using Technical Analysis to Enhance Our Covered Call Writing and Cash-Secured Put Trades
Premium Membership
How Alan Got Started with Stock Options
Why Covered Call Options May Be Your Best Investing Strategy
Nasdaq Interviews Alan Ellman
© 2024 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