Comments on: Covered Combinations: Merging Covered Call Writing and Put-Selling into One Strategy https://www.thebluecollarinvestor.com/covered-combinations-merging-covered-call-writing-and-put-selling-into-one-strategy/ Learn how to invest by selling stock options. Wed, 24 Dec 2014 20:43:06 +0000 hourly 1 By: Alan Ellman https://www.thebluecollarinvestor.com/covered-combinations-merging-covered-call-writing-and-put-selling-into-one-strategy/#comment-21753 Wed, 24 Dec 2014 20:43:06 +0000 http://www.thebluecollarinvestor.com/?p=10650#comment-21753 Premium members:

This week’s 8-page report of top-performing ETFs and analysis of ALL Select Sector Components has been uploaded to your premium site. The report also lists Top-performing ETFs with Weekly options as well as the implied volatility of all eligible candidates.

For your convenience, here is the link to login to the premium site:

http://www.thebluecollarinvestor.com/member/login.php

NOT A PREMIUM MEMBER? Check out this link:

http://www.thebluecollarinvestor.com/membership.shtml

Alan and the BCI team

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By: Alan Ellman https://www.thebluecollarinvestor.com/covered-combinations-merging-covered-call-writing-and-put-selling-into-one-strategy/#comment-21750 Tue, 23 Dec 2014 11:56:01 +0000 http://www.thebluecollarinvestor.com/?p=10650#comment-21750 All PUT Books shipped:

We received a large shipment from the publisher yesterday allowing us to ship all remaining books ordered. The first 2 shipments were sold out in the first 4 days of early-ordering so we had to wait for the publisher to print more books. We now have adequate inventory to ship new orders within 1 – 2 business days of receipt of the order (usually 1 day).

Thanks for your patience in this matter and for your amazing support.

Alan

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By: Alan Ellman https://www.thebluecollarinvestor.com/covered-combinations-merging-covered-call-writing-and-put-selling-into-one-strategy/#comment-21748 Tue, 23 Dec 2014 09:56:36 +0000 http://www.thebluecollarinvestor.com/?p=10650#comment-21748 In reply to Caleb.

Caleb,

Check with your tax advisor for your specific situation. In general, short and long term capital gains or losses is determined by the holding period for the stock or option. In the case of option-selling, it is almost always short-term in nature. For stocks, if owned for more than 1 year and one day it is long-term. Whenever possible, option-selling should be done in sheltered accounts.

The impact on SS is beyond my area of expertise.

Alan

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By: Caleb https://www.thebluecollarinvestor.com/covered-combinations-merging-covered-call-writing-and-put-selling-into-one-strategy/#comment-21747 Tue, 23 Dec 2014 09:51:38 +0000 http://www.thebluecollarinvestor.com/?p=10650#comment-21747 If I sell a covered call in the money and it exercises. Still make money on it from the options premiums, is this taxed as Capitol gains or a capital loss? If it is taxed as a Capitol loss is this a bad thing? Will this afect how much SSC I get when I retire?

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By: Alan Ellman https://www.thebluecollarinvestor.com/covered-combinations-merging-covered-call-writing-and-put-selling-into-one-strategy/#comment-21746 Tue, 23 Dec 2014 08:22:58 +0000 http://www.thebluecollarinvestor.com/?p=10650#comment-21746 Congratulations to new member Rodrigo on his 1st month’s returns. CLICK ON IMAGE TO ENLARGE & USE BACK ARROW TO RETURN TO BLOG.

Keep up the good work.

Alan

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By: Alan Ellman https://www.thebluecollarinvestor.com/covered-combinations-merging-covered-call-writing-and-put-selling-into-one-strategy/#comment-21743 Mon, 22 Dec 2014 21:06:35 +0000 http://www.thebluecollarinvestor.com/?p=10650#comment-21743 In reply to Sean Green.

Hi Sean,

You are concerned about the right scenario. A drop in price of the underlying security is what we, as cc writers or put sellers (or long stock owners for that matter), need to be prepared for. In my new book, I lay out position management techniques for all scenarios, both positive and negative.

Selling put and call options are income-generating strategies with the possibility of a growth component in normal and bull market conditions. That’s where mastering the skill of strike price selection comes into play. Whenever possible, we try to get both but in certain bearish or volatile market conditions we are better served concentrating on only income. This is an art as much as a science.

It is important to define our goals and then focus like a laser on achieving those goals without the distraction of another strategy that may have other objectives.

Using strangles is a strategy that looks for large price movements in the underlying securities and is beyond the scope and mission statement of this site.

Alan

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By: Alan Ellman https://www.thebluecollarinvestor.com/covered-combinations-merging-covered-call-writing-and-put-selling-into-one-strategy/#comment-21742 Mon, 22 Dec 2014 17:35:09 +0000 http://www.thebluecollarinvestor.com/?p=10650#comment-21742 In reply to Richard.

Richard,

Yes, that is accurate. AT&T has been paying dividends since the late 1800s. here’s an excellent free site to get dividend info:

http://www.dividendinvestor.com/?chk=329d81419269434&symbol=t&submit=GO

Alan

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