Comments on: Strike Selection for Portfolio Overwriting Low Cost-Basis Stocks https://www.thebluecollarinvestor.com/strike-selection-for-portfolio-overwriting-low-cost-basis-stocks/ Learn how to invest by selling stock options. Fri, 05 Oct 2018 01:02:01 +0000 hourly 1 By: Jay https://www.thebluecollarinvestor.com/strike-selection-for-portfolio-overwriting-low-cost-basis-stocks/#comment-180635 Fri, 05 Oct 2018 01:02:01 +0000 https://www.thebluecollarinvestor.com/?p=17106#comment-180635 Well friends, some here will recall the old song “Momma’ told me there’d be days like this, there’d be days like this my Momma’ said” :)?

I am actually surprised we have not seen more of them before now. And by the end it was not that terrible. Call it interest rate fear, trade wars, seasonality, sector rotation, pre-election jitters, whatever you like. It attests to the value of options selling, not over loading one sector, layering strikes and having dry powder.

I did a little buying mid day also selling a couple CSP’s further underneath. It helps to keep some cash on hand for when things go on a “surprise sale” :)! Build it when things are going up so you will have it when they are not. – Jay

]]>
By: Roni https://www.thebluecollarinvestor.com/strike-selection-for-portfolio-overwriting-low-cost-basis-stocks/#comment-180627 Thu, 04 Oct 2018 21:35:36 +0000 https://www.thebluecollarinvestor.com/?p=17106#comment-180627 In reply to Harry.

Hi Harry,

most of the times when I look at Weeklys, the open interest is very low and the bid/ask spread is very high, while the Monthlys look much better.
The BCI methodology guidelines are: OI above 100, and spread within $0.30.

Roni

]]>
By: MarioG https://www.thebluecollarinvestor.com/strike-selection-for-portfolio-overwriting-low-cost-basis-stocks/#comment-180598 Thu, 04 Oct 2018 13:17:48 +0000 https://www.thebluecollarinvestor.com/?p=17106#comment-180598 In reply to MarioG.

Also tell me what brokers you are using. I use Fidelity and Etrade.

Mario

]]>
By: MarioG https://www.thebluecollarinvestor.com/strike-selection-for-portfolio-overwriting-low-cost-basis-stocks/#comment-180597 Thu, 04 Oct 2018 13:03:24 +0000 https://www.thebluecollarinvestor.com/?p=17106#comment-180597 In reply to federico.

Federico, Thanks for your feedback. Ask me any time what part or parts you don’t understand with the Mid-Contract Unwind (MCU) reply I gave and setting the Credit Limits for the Unwind order. It took me a long time understand it as well (lot of nervous states in the beginning) since you are assimilate a lot of concepts. It will help others as well.

Remember to use the Google search as well in this blog to pick up information from previous Blog responses. Great asset.

Mario

]]>
By: Alan Ellman https://www.thebluecollarinvestor.com/strike-selection-for-portfolio-overwriting-low-cost-basis-stocks/#comment-180595 Thu, 04 Oct 2018 09:48:11 +0000 https://www.thebluecollarinvestor.com/?p=17106#comment-180595 In reply to Harry.

Harry,

Protective puts offer the benefit of downside protection against catastrophic price decline. In return, we are accepting lower overall returns due to the cost of the puts. When used with covered call writing, the strategy is known as the collar strategy, a topic covered in our recent publication, “Covered Call Writing Alternative Strategies”

https://thebluecollarinvestor.com/minimembership/covered-call-writing-alernative-strategies/

The BCI team also created a calculator for this and other strategies found in that book:

https://thebluecollarinvestor.com/minimembership/calculator-package/

The use of protective puts does not preclude our critical implementation of exit strategy opportunities when they arise. Use of protective puts should be based on personal risk tolerance.

My personal preference is Monthlys over Weeklys but each have their pros and cons. For example, Weeklys make it easier to circumvent earnings reports and ex-dividend dates but have 4 – 5 times the number and amount of trading commissions.

Check the file, “Weekly Options Pros & Cons” in the “resources/downloads” section of the premium member site.

Alan

]]>
By: Alan Ellman https://www.thebluecollarinvestor.com/strike-selection-for-portfolio-overwriting-low-cost-basis-stocks/#comment-180568 Wed, 03 Oct 2018 21:35:32 +0000 https://www.thebluecollarinvestor.com/?p=17106#comment-180568 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.

New members check out the video user guide located above the recent reports.

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: Harry https://www.thebluecollarinvestor.com/strike-selection-for-portfolio-overwriting-low-cost-basis-stocks/#comment-180567 Wed, 03 Oct 2018 21:20:39 +0000 https://www.thebluecollarinvestor.com/?p=17106#comment-180567 Alan do you use covered call protection such as puts in your covered call strategy? Which option strategy do you feel is most productive, weekly options or monthly? Seems
thy would be the same bt maybe not. I always have used weekly.

Thank you this is my first week, I am sure I will have more questions after I review your videos

Thank you!

Harry

]]>