Comments on: How to Use Weeklys and the Premium Stock Reports for Covered Call Writing During Earnings Season https://www.thebluecollarinvestor.com/how-to-use-weeklys-and-the-premium-stock-reports-for-covered-call-writing-during-earnings-season/ Learn how to invest by selling stock options. Mon, 12 Feb 2024 21:09:47 +0000 hourly 1 By: Alan Ellman https://www.thebluecollarinvestor.com/how-to-use-weeklys-and-the-premium-stock-reports-for-covered-call-writing-during-earnings-season/#comment-25910 Fri, 08 Jan 2016 18:27:49 +0000 http://www.thebluecollarinvestor.com/?p=13162#comment-25910 In reply to Dennis.

Dennis,

The first 4 days of 2016 have been the worst start to a trading year in the history of the stock market (a bit of a rebound so far today). That said, whether we stay in the market or on the sidelines is a matter of personal risk-tolerance. If we are in, some ideas to consider:

1- Consider only ITM calls and deep OTM puts
2- Use low-beta stocks
3- Use low IV ETFs
4- Use inverse-ETFs
5- ***Extreme diligence with position management arsenal (exit strategies)
6. Buy protective puts (collar strategy)

I personally favor #s 1 and 5 but all are available defensive strategies.

Markets in the short-term can be our best friend or worst enemy. Currently we are not on talking terms but that can turn around abruptly.

Alan

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By: Dennis https://www.thebluecollarinvestor.com/how-to-use-weeklys-and-the-premium-stock-reports-for-covered-call-writing-during-earnings-season/#comment-25909 Fri, 08 Jan 2016 18:20:37 +0000 http://www.thebluecollarinvestor.com/?p=13162#comment-25909 Under the current market conditions are you completely out stocks and in cash? Would you consider buying puts? If neither of the above how does BCI handle such a significant downturn?

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By: Alan Ellman https://www.thebluecollarinvestor.com/how-to-use-weeklys-and-the-premium-stock-reports-for-covered-call-writing-during-earnings-season/#comment-25908 Fri, 08 Jan 2016 18:16:28 +0000 http://www.thebluecollarinvestor.com/?p=13162#comment-25908 In reply to Eugene.

Eugene,

A few years ago the Options Clearing Corporation approved the implementation of Weekly options for certain highly-traded securities. Today, there are a few hundred securities that trade Weeklys in addition to Monthlys. There are thousands of securities that trade only Monthlys. It’s all a matter of supply and demand as options have become extremely popular during the past several years.

Alan

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By: Eugene https://www.thebluecollarinvestor.com/how-to-use-weeklys-and-the-premium-stock-reports-for-covered-call-writing-during-earnings-season/#comment-25906 Fri, 08 Jan 2016 18:12:07 +0000 http://www.thebluecollarinvestor.com/?p=13162#comment-25906 Alan,

I have a quick questions that I cannot seem to find the answer to. As I’m learning about covered call options, I see on yahoo finance that there are call options available for me to sell which expire every Friday, as opposed to ever 3rd Friday of the month. I was taught that options expire every 3rd Friday of the month, and so I’m confused why there are options every Friday. Any information would be very much appreciated.

Thank you!
Eugene

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By: Alan Ellman https://www.thebluecollarinvestor.com/how-to-use-weeklys-and-the-premium-stock-reports-for-covered-call-writing-during-earnings-season/#comment-25608 Wed, 06 Jan 2016 22:37:00 +0000 http://www.thebluecollarinvestor.com/?p=13162#comment-25608 In reply to Ed.

Ed,

In my view, diversification is essential in any investment strategy and one or two stocks for a covered call portfolio will not provide that for us. However, exchange-traded funds can accomplish that goal. These are mutual funds that behave like stocks and represent a basket of stocks. Whether you use our service or select based on your own criteria this is a viable way to diversify in a covered call portfolio while building equity and eventually moving to stocks as the underlyings. As a guideline, when using stocks, I like at least 5 different stocks in 5 different industries.

Alan

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By: Ed https://www.thebluecollarinvestor.com/how-to-use-weeklys-and-the-premium-stock-reports-for-covered-call-writing-during-earnings-season/#comment-25607 Wed, 06 Jan 2016 22:31:18 +0000 http://www.thebluecollarinvestor.com/?p=13162#comment-25607 Alan,

I spent a couple of years buying options and finally realized that selling options is theasy better road. I’ve been researching covered calls and know the right equity is a key piece to profit. Multiple contractsources is next. I have about 20k available for covered calls. I would like to know if I should sell cc’s on just one or two equities over and over, or use a service like yours to pick different stocks on a cycle?

Hoping to hear back from you,
Ed

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By: Alan Ellman https://www.thebluecollarinvestor.com/how-to-use-weeklys-and-the-premium-stock-reports-for-covered-call-writing-during-earnings-season/#comment-25437 Tue, 05 Jan 2016 22:33:58 +0000 http://www.thebluecollarinvestor.com/?p=13162#comment-25437 Premium members:

This week’s 7-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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