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Covered call writing and mini options

Mini Options- A New Product For Retail Investors

There is a new options product that will begin trading on March 18th which has the potential to add great flexibility to our covered call writing strategy. They are called […]

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The 10 Most Common Mistakes Made By Covered Call Writers And How To Avoid Them

Your neighbor bursts into your house and exclaims “I just read this article…You buy a stock and sell an option and cash flows into your account instantly. It’s a miracle! I’m getting […]

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Inverse ETFs and covered call writing

Inverse Exchange-Traded Funds and Covered Call Writing

Last month I published an article titled Complex and Leveraged Exchange-Traded Funds. I discussed the goals and risks associated with many of these products. One of the topics examined was Inverse […]

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Put-Call Parity: Understanding Option Pricing

One of the mission statements of The Blue Collar Investor is to share information so that we can master option trading basics and become better investors. Many times I will […]

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Complex ETFs

Complex and Leveraged Exchange-Traded Funds

With more and more Blue Collar Investors using online discount brokers as their trading platforms the need to be aware of the risks of complex and leveraged exchange-traded funds has become […]

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Early assignment of options

Early Exercise and Assignment of Options

When we sell a covered call option, we are undertaking an obligation for which we are well paid. Should the option holder decide to exercise that option, we must sell […]

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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 […]

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option liquidity

What Is Slippage And How Does It Impact Our Trading Success?

When studying investment basics, the term slippage has two applications. In general, it means having a trade executed at a price less favorable to the trader. Let’s look at the […]

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Portfolio overwriting with GMCR

Portfolio Overwriting- Selling Covered Calls on Stocks You Want to Keep.

For covered call writers the main stock option strategy is to purchase an equity specifically for the purpose of selling the corresponding call option. The investment time frame is one to two months […]

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Covered call writing index

Covered Call Writing and Exchange-Traded Funds

A critical requirement of my covered call writing system is to be properly diversified by stock, industry and cash allocation. No one stock or industry should represent more than 20% […]

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