Comments on: Selecting A Specific Strike Price For Our Covered Call Positions https://www.thebluecollarinvestor.com/selecting-a-specific-strike-price-for-our-covered-call-positions/ Learn how to invest by selling stock options. Mon, 28 May 2018 08:35:04 +0000 hourly 1 By: Andrey https://www.thebluecollarinvestor.com/selecting-a-specific-strike-price-for-our-covered-call-positions/#comment-165713 Mon, 28 May 2018 08:35:04 +0000 http://www.thebluecollarinvestor.com/?p=9213#comment-165713 I personally choose the strike price ( when selling Puts) considering the facts that would I really like to own that particular stock, while I am selling Cash secured Puts, if not then my approach will be very conservative,to make some additional income of a few “crumbs”.

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By: Alan Ellman https://www.thebluecollarinvestor.com/selecting-a-specific-strike-price-for-our-covered-call-positions/#comment-18505 Thu, 20 Feb 2014 00:06:52 +0000 http://www.thebluecollarinvestor.com/?p=9213#comment-18505 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. You may note that report has become a couple of pages longer due to the additional implied volatility information and as more candidates become eligible.

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/selecting-a-specific-strike-price-for-our-covered-call-positions/#comment-18502 Wed, 19 Feb 2014 02:43:37 +0000 http://www.thebluecollarinvestor.com/?p=9213#comment-18502 Running list stocks in the news: WLK:

One of the stocks on our current Premium Watch List, WLK, announced this morning a 2-for-1 stock split effective after close on March 18th. The company also increased its cash dividend by 12%. For those of you who own the stock will end up with twice the number of shares at half the price. Those who sell options on this underlying will have sold double the number of contracts @ 1/2 the strike price. For example, had you sold (after earnings) 2 contracts of the $130 strike pre-split, it turns into 4 contracts at the $65 strike post split. Beware of the 2-20 earnings report.

Our premium Running List shows an industry rank of “B”, an aggressive beta of 1.5, a % dividend yield of 0.70, an ex-date of 12-4-13 (last one) and adequate option liquidity.

Alan

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By: Alan Ellman https://www.thebluecollarinvestor.com/selecting-a-specific-strike-price-for-our-covered-call-positions/#comment-18475 Tue, 18 Feb 2014 12:38:50 +0000 http://www.thebluecollarinvestor.com/?p=9213#comment-18475 To all members:

After 5 days at the International Traders Expo @ The Marriott Marquis Hotel in NYC I will be returning to my office on Wednesday and catching up with your emails.

This event has been a real treat for me because so many BCI members attended and we had a chance to meet in person. My seminar was packed with attendees and there is nothing better for a speaker than a venue completely filled…thank you.

One more seminar this morning and back to a normal routine tomorrow.

Alan

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By: Alan Ellman https://www.thebluecollarinvestor.com/selecting-a-specific-strike-price-for-our-covered-call-positions/#comment-18468 Sun, 16 Feb 2014 20:11:26 +0000 http://www.thebluecollarinvestor.com/?p=9213#comment-18468 In reply to Marc Zehngut.

Marc,

Yes it makes absolute sense. If you are selling multiple contracts, strike diversification is a great way to further diversify your risk. I use this strategy whenever there is no definitive market direction or suspect possible short-term volatility.

Alan

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By: Marc Zehngut https://www.thebluecollarinvestor.com/selecting-a-specific-strike-price-for-our-covered-call-positions/#comment-18467 Sun, 16 Feb 2014 18:19:12 +0000 http://www.thebluecollarinvestor.com/?p=9213#comment-18467 Hi Alan,

If I like a stock but am unsure about its short term direction, would it ever make sense to write multiple strike prices, some ITM, ATM, and OTM, with the same expiration date, what I would call “strike price diversification?” Or should I choose just one strike price?

Thanks for all the great information.

Marc

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By: Barry B https://www.thebluecollarinvestor.com/selecting-a-specific-strike-price-for-our-covered-call-positions/#comment-18464 Sun, 16 Feb 2014 06:27:11 +0000 http://www.thebluecollarinvestor.com/?p=9213#comment-18464 Premium Members,

This week’s Weekly Stock Screen And Watch List has been uploaded to The Blue Collar Investor premium member site and is available for download in the “Reports” section. Look for the report dated 02-14-14.

Also, be sure to check out the latest BCI Training Videos and “Ask Alan” segments. You can view them at The Blue Collar YouTube Channel. For your convenience, the link to the BCI YouTube Channel is:

http://www.youtube.com/user/BlueCollarInvestor

Since we are in Earnings Season, be sure to read Alan’s article, “Constructing Your Covered Call Portfolio During Earnings Season”. You can access it at:

http://www.thebluecollarinvestor.com/constructing-your-covered-call-portfolio-during-earnings-season/

Best,

Barry And The BCI Team

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