Wait a minute! What if I buy a call option instead of the stock and then sell a call option on that option? I’ll be spending less money than outright purchase of the equity and still generate cash from the sale of the call option! This idea has come to many of you and as […]
The Out-Of-The-Money Strike- Pros and Cons
Whenever a study is performed on covered call writing a stock is selected and the nearest out-of-the-money (O-T-M) strike is sold. This is repeated over and over and then the results are compared to the overall market performance. The usual conclusion is that covered call writing slightly outperforms the overall market but with much less […]
Protective Puts- The Collar Strategy
As safe a strategy that covered call writing is, there is some risk…the risk is in the stock, not in selling the option. That is why some investors who utilize this strategy buy protective puts to alleviate some of the risk. Definition of a protective put: A put option purchased for a stock that is already owned […]
Using Covered Call Options to Increase the Value of Your Stock
If you had a $1000.00 more today than you did yesterday, is your net worth +$1000.00 or does it depend where that cash came from (this is not one of my trick questions). What if you earned it at your job? Investment income? Found it on the street? Gift from grandma? Got lucky at the […]
The Option Buyer or the Option Seller: Which should you be?
You walk into your local stationery store and pull out a $20 bill. “Give me 20 state lottery tickets, please.” You can’t help but dream of all the riches that $20 investment will provide to you. After all, the grand prize is up to $25 million dollars. You even go so far as to compute […]
The Bernie Madoff Ponzi Scheme: A Validation of our Blue Collar Philosophy plus Tony C. checks in on Cramer
_________________________________________________________ Blue Collar Mission Statement 1– Become CEO of your own money 2- Become financially independent ___________________________________________________________ Never before have the convictions of the Blue Collar philosophy become more meaningful as they have this past week with the arrest of Bernie Madoff for what may become the biggest fraud in the history of Wall Street. Madoff, […]
Podcast
- 99. Anatomy of a Reverse Stock Split
- 98. Analyzing LEAPS Options for the Poor Man's Covered Call
- 97. Managing Our Poor Man's Covered Call Trades When Share Price Drops Substantially
- 96. Protecting Our Covered Call Trades: Protective Puts and In-the-Money Strikes
- 95. Covered Call Writing to Generate Premium and Dividend Income
- 94. Covered Call Writing Net Debit Limit Orders
- 93. WHEN CALL STRIKES MOVE DEEP ITM EARLY IN A CONTRACT
- 92. Selling Deep OTM Cash-Secured Puts to Create High-Probability Returns
- 91. Portfolio Overwriting Analyzed
- 90. Entering a Collar Trade
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