Watch Video: Listen To Audio Version: Exit strategies are critical to our overall option-trading success. This podcasts will detail how to roll options, both up and down, when using the PMCC strategy. The BCI PMCC Calculator will be used to facilitate our trading decisions. —— ——1. Premium Membership:https://www.thebluecollarinvestor.com/membership/ Best Discounted Packages:2. BCI Package, our Best […]
Ask Alan 206: 20%/10% Guidelines for In-The-Money Strikes
Alan answers a question posed by Ken, who asks: Alan, In the BCI system, do we apply the 20%/10% guidelines the same way for ITM calls as when selling OTM calls? For OTM, it is based only on extrinsic-value. For ITM, is it based on the entire premium or just the extrinsic-value of the premium? […]
Ask Alan 195: Will the Upcoming Dividend Cause My Shares to Be Sold?
Alan answers a question posed by Elliot, who asks: Hi Alan, Hi Alan, I bought SBLK and sold the 3/18/2022 $29.00 call. The stock closed today (2/26) at $31.76 and there is an upcoming ex-dividend date on 3/2/2022. Will my shares be sold on Monday, the day before the ex-date? Thanks, Bob The main cause […]
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Adjusting Our Portfolio Mix to Achieve Diversification and Cash Allocation
To decrease portfolio risk for our covered call writing and put-selling portfolios we must be well diversified and allocate a similar amount of cash per position. The allotment of cash per-position will rarely be precise but it is a goal we must incorporate into our methodology. In this article, I will describe the process for […]
Poor Man’s Covered Call: Selecting the Best LEAPS Strike
The Poor Man’s Covered Call (PMCC) is a covered call writing-like strategy where deep in-the-money LEAPS options are used in lieu of long stock positions. Short-term out-of-the-money call options are sold against the long position. The technical term is a long call diagonal debit spread. When setting up the initial trade, decisions must be made […]
Creating a Portfolio of Weekly Cash-Secured Puts
Selling cash-secured puts is a strategy similar to, but not precisely the same, as covered call writing. In February 2020, Chevy wrote to me asking for an article or video addressing weekly cash-secured puts, a strategy he was using and looking to enhance. The 3-required skills Whether we are selling calls or puts and […]
BCI PODCAST 15. Strike Selection When Selling Puts
Watch Video: Listen To Audio Version: Identifying strategy goals, initial time-value return goal ranges, market assessment and technical analysis all go into strike price selection when selling cash-secured puts. A real-life example with WWE explores several strike choices and the pros and cons of each strike price. The BCI Put-Selling Calculator is introduced into this […]
BCI PODCAST 13. Adding a Short Put To a Collar Trade
Watch Video: Listen To Audio Version: When we add a protective put to a covered call trade we now have a collar trade. Since that protective put costs us money, it has been suggested to fund that debit with a short put. This podcast examines the pros and cons of such a strategy approach. BECOME […]
Automating the 20%/10% Guidelines
Position management is the 3rd required skill for achieving the highest level of option-selling success. One of the most important of the BCI protocols for covered call writing are the 20%/10% guidelines which assists us is closing short calls when those opportunities are presented. This allows us to mitigate situations when share price declines. These […]
Market Volatility and Our Option-Selling Trades: Using the VIX to Achieve Higher Returns
Options trading basics teaches us that the VIX or CBOE Volatility Index reflects the market’s expectation of the upcoming 30-day volatility. It measures market risk and is also known as the investor fear gauge. With this in mind, option-sellers are faced with a dilemma. Increased market volatility will translate into higher option premiums because the […]
Podcast
- 104. Special 1 Time Dividends and Contract Adjustments
- 103. The Collar Strategy Using Long-Term Put Expirations
- 102. Analyzing Market Assessment Based on Portfolio Setup
- 101. Covered Call Writing: "Hitting a Double" on the Last day of a Contract
- 100. Analyzing LEAPS for The Poor Man's Covered call Strategy (PMCC)
- 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
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