Technical analysis is one of the critical tools available to us in selecting the best stocks for our option-selling strategies. Price charts are much more than a sequence of dots and lines…they tell a story about a company which, with proper research, ultimately leads to a series of rules and guidelines that will assist in […]
Technical Analysis Impacting Stock Eligibility for Option-Selling
Fundamental analysis, technical analysis and common sense principles comprise the 3-pronged approach used in the BCI methodology for screening for option-selling candidates. Technical analysis is the factor that changes most frequently and is the main reason a stock will get “bumped” from our Premium Stock Reports. In our 11/10/2017 Premium Stock Report, MKS Instruments (NASDAQ: […]
Writing Naked Calls on Poorly-Performing Stocks
Selling covered calls and cash-secured puts are the main strategies highlighted in our BCI community. Much of the information disseminated on the Blue Collar site, books and DVDs is based on member feedback, inquiries and comments. In September 2017, Marc sent me an email question about selling naked (without owning the underlying security before selling […]
Protecting Unrealized Profits When Share Price Accelerates
Covered call writing dilemmas can frequently result from positive circumstances. In August 2017, Vincent shared a trade he executed where an out-of-the-money strike was sold and share price had moved up significantly and was approaching the strike price. This means that Vincent realized an initial option premium return plus had an unrealized share appreciation component […]
Volume Versus “Deliverable Volume” Explained and Analyzed
Trading volume is the number of trades for a security in a given time frame. On a chart volume is typically represented as a histogram (vertical bars) and represents a confirmation or lack thereof of the other technical indicators. For example, if a moving average breaks below support on high volume, it is more significant […]
Price Gaps and the Need for Exit Strategy Execution
Position management is one of the 3 required skills needed for covered call writing and put-selling. When share price gaps up or down there is a strong possibility that an exit strategy opportunity will present itself. There are times, however, when no action is the best action. On June 26th, 2017, Luis contacted me about […]
Writing Covered Call Options to Compensate for Share Depreciation
Covered call writing generates monthly (or weekly) cash flow but it also reduces our cost basis. The latter result is the reason why covered call writing increases our chances of a successful trade more so than simply owning the stock. Historical data tells us that in the long haul the stock market increases in value. […]
Special 1-Time Cash Dividends for Stocks with Improving Technicals
Covered call writing and put-selling candidates must pass a series of fundamental, technical and common-sense screens in order to be considered eligible for our portfolios. In early January 2017, one of our members, Jim W, asked about using Ford Motor Corp. (F), a stock that does not pass our BCI screens but has several positive […]
Using Technical Indicators to Assist with Strike Selection
When selling covered call or put options, strike price selection is one of the three required skills. Here are the main factors we evaluate when determining which strike price to select: Overall market assessment Personal risk tolerance Return goals Technical price chart In this article, we will focus in on the technical parameters that will […]
When Do We Keep a Stock that has Declined in Value?
The BCI methodology requires fundamental analysis, technical analysis and common sense screening (like minimum trading volume and avoiding earnings reports). One of the most difficult decisions retail investors face is when to sell a stock that has depreciated in value. We all deal with such decisions every contract month no matter how rigorous a screening process we […]
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ASK ALAN #152 Covered Call Writing with Only One Underlying Security
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Price Charts Tell a Story and Provide Guidance in Formulating Our Investment Strategies
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After-Hours Bid – Ask Spreads Can Be Deceiving
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Dow 30 Stocks and Covered Call Writing: Implementing the Premium Blue Chip Report
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Increasing Capital Gains When Selling Stock: Another Use for Covered call Writing
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The New Stock Market- Algorithmic and High Speed Trading
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Options That Expire Weekly and Conventional Expiration Cycles
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Why the 3% Guideline Applies to Puts but Not to Call Options
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Earnings Pre-Announcements Explained and Categorized
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Tax Implications of Writing Covered Calls against Long-Term Holdings
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John Alan, Great information! Thank you for getti
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Alan Ellman John, 1.The range is 1 - 5 with "1" b
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Terry "2 new files titled “Mean Analyst rating”
