Comments on: Rolling-Down with a Few Hours to Expiration: A Real-Life Example with Energy Select Sector SPDR (NYSE: XLE) https://www.thebluecollarinvestor.com/rolling-down-with-a-few-hours-to-expiration-a-real-life-example-with-energy-select-sector-spdr-nyse-xle/ Learn how to invest by selling stock options. Thu, 02 Sep 2021 13:53:32 +0000 hourly 1 By: Barry B https://www.thebluecollarinvestor.com/rolling-down-with-a-few-hours-to-expiration-a-real-life-example-with-energy-select-sector-spdr-nyse-xle/#comment-458641 Thu, 02 Sep 2021 13:53:32 +0000 https://www.thebluecollarinvestor.com/?p=20201#comment-458641 In reply to Roni.

Roni,

Thank you…I appreciate your support.

Best,

Barry

]]>
By: Alan Ellman https://www.thebluecollarinvestor.com/rolling-down-with-a-few-hours-to-expiration-a-real-life-example-with-energy-select-sector-spdr-nyse-xle/#comment-458275 Wed, 01 Sep 2021 21:43:39 +0000 https://www.thebluecollarinvestor.com/?p=20201#comment-458275 Premium members:

This week’s 4-page report of top-performing ETFs and analysis of the top-performing Select Sector SPDRs has been uploaded to your premium site. One and three-month analysis are included in the report. Weekly performance has also been incorporated into the report although not part of the screening process. Weekly option availability and implied volatility stats are also incorporated.

The mid-week market tone is located on page 1 of the report.

New members check out our ongoing and never-ending training videos (“Ask Alan” and Blue Hour webinars). We add at least one new video each month. Only premium members have access to the entire library of these training tools.

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

]]>
By: Roni https://www.thebluecollarinvestor.com/rolling-down-with-a-few-hours-to-expiration-a-real-life-example-with-energy-select-sector-spdr-nyse-xle/#comment-458203 Wed, 01 Sep 2021 19:08:38 +0000 https://www.thebluecollarinvestor.com/?p=20201#comment-458203 In reply to Alan Ellman.

Kevin,

On Friday, 08/20, some of my CCs went worthless, and I retained the underlying securities. Then, last week I needed to sell them to avoid ERs.
The market improved, and therefore, two trades had gains, and one had a loss, but the result was that I ended up with $75,000.00 to reinvest.

So, I waited for the new watch list and, on Monday 08/30, I placed three 09/17 NTM CC trades with favorable ROOs.

Therefore, as you can see, the weekly BCI reports are fundamental for our everyday trading strategy.

Thank you, Barry, for your hard work.

Roni

]]>
By: Alan Ellman https://www.thebluecollarinvestor.com/rolling-down-with-a-few-hours-to-expiration-a-real-life-example-with-energy-select-sector-spdr-nyse-xle/#comment-458090 Wed, 01 Sep 2021 11:57:34 +0000 https://www.thebluecollarinvestor.com/?p=20201#comment-458090 In reply to Kevin.

Kevin,

My personal preference is for Monthlys. The bulk of my trades are initiated the Monday or Tuesday after expiration Friday (3rd Friday of the calendar month).

I do use Weeklys in some of my smaller portfolios (10-Delta Weekly Put Strategy, for example). We also have a significant percentage of BCI members who prefer Weeklys… both will work once mastering the 3-required skills.

Also, if closing a position mid-Monthly contract, we use our most recent report for stock replacements.

Producing our reports on a weekly basis allows our members to have up-to-date information for all trading styles.

Alan

]]>
By: Alan Ellman https://www.thebluecollarinvestor.com/rolling-down-with-a-few-hours-to-expiration-a-real-life-example-with-energy-select-sector-spdr-nyse-xle/#comment-457763 Tue, 31 Aug 2021 23:01:36 +0000 https://www.thebluecollarinvestor.com/?p=20201#comment-457763 In reply to Wayne.

Wayne,

This is an ultra-low risk strategy where the main motivation is capital preservation even if it comes at the expense of returns in low volatility environments..

We must also compare annualized returns of 8% – 9% (as an example) to alternatives like Treasuries, CDs and money markets (get the magnifying glasses!).

The 9% annualized return you alluded to is still an enticing result given current circumstances and will align with personal low-risk tolerances. All systems go as far as I’m concerned.

Alan

]]>
By: Kevin https://www.thebluecollarinvestor.com/rolling-down-with-a-few-hours-to-expiration-a-real-life-example-with-energy-select-sector-spdr-nyse-xle/#comment-457634 Tue, 31 Aug 2021 19:20:35 +0000 https://www.thebluecollarinvestor.com/?p=20201#comment-457634 Hi Alan,

Do you only write cover calls only in the beginning of the option contract month ? What do you do about the companies that make the list in the 2nd and 3rd week ? Do you wait until the next month to sell cover calls or do sell the cover calls with a shorter duration contract period?

Regards,
Kevin

]]>
By: Alan Ellman https://www.thebluecollarinvestor.com/rolling-down-with-a-few-hours-to-expiration-a-real-life-example-with-energy-select-sector-spdr-nyse-xle/#comment-457324 Tue, 31 Aug 2021 09:21:08 +0000 https://www.thebluecollarinvestor.com/?p=20201#comment-457324 In reply to Robert Glenn.

Rob,

The key to this approach is the long-term commitment to the underlyings. Given that specific scenario, the strategy is reasonable. I would give strong consideration to:

1. Basing the put strike on current market value and strategy return goal range.

2. Avoid writing calls through earnings reports, leaving the protective put in place. Weeklys, if available, will be helpful here.

3. Rolling put strikes up may be necessary for proper protection but this would add to cost-basis.

Alan

]]>