Covered call writing and selling cash-secured puts are stock option strategies with primary goals of income generation and capital preservation. Most of us are conservative investors who seek to beat the market on a consistent basis while minimizing portfolio risk. This is one of the mission statements of the BCI methodology. In the past few […]
Stock Selection: Using Secondary Parameters from Our Premium Stock Reports
Stock selection is the first of 3-required skills essential to become an elite option-seller. Option selection and position management are the other two. On 3/31/2019, Sunny wrote to me inquiring about 2 stocks, Edwards Lifesciences Corp. (NASDAQ: EW) and Regeneron Pharmaceuticals (NASDAQ: REGN). He was deciding between these 2 securities in the “medical industry” and […]
Comparing Implied Volatility and Historical Volatility During Earnings Season
When selecting stocks and options for covered call writing and put-selling we factor in volatility, both implied and historical. Historical Volatility (HV) is the actual volatility of a security over a given time period. HV is calculated by determining the average deviation from the average price based on one standard deviation (expected to be accurate 67% of the time). Implied volatility (IV) is […]
What is Beta-Weighting?
What is the impact on the overall market on our covered call writing and put-selling positions? We know that market movement plays a major role in our stock and options selections as well as our position management choices. In today’s article we will discuss a means of actually measuring the specific sensitivity of our individual […]
Using Beta To Capture Higher Premium Returns
When using covered call writing and put-selling strategies it is important to set goals for initial returns in order to select the most appropriate underlying security and option. My goal for initial returns is 2% – 4% per month and a bit higher in a bull market environment. Recently, several of our members have contacted […]
Covered Call Writing When There Is Overall Market Concern
Covered call writing is a stock option strategy with primary goals of income generation and capital preservation. Most of us are conservative investors who use the power of education to master an investment strategy better than most everyone else using the same strategy. That is what the Blue Collar Investor is all about. In the […]
Covered Call Writing and the Blue Collar Premium Report
Successful covered call writing requires proper stock and option selection. With the significant increase in our premium membership subscriptions over the past several months we have received dozens of inquiries as to how best to incorporate the stocks on the ‘running list”, our watch list, into our portfolios. The Premium (BCI) Report takes the universe […]
Beta: Another Tool to Enhance our Covered Call Returns
When we defined the Greeks in a previous article concerning investment basics, it included a discussion of the price sensitivity of the option premium as it relates to the underlying equity, time and other factors. One of the rules was that (all other factors being equal) an increase in share volatility will increase an option premium. An equity […]
Podcast
- 99. Anatomy of a Reverse Stock Split
- 98. Analyzing LEAPS Options for the Poor Man's Covered Call
- 97. Managing Our Poor Man's Covered Call Trades When Share Price Drops Substantially
- 96. Protecting Our Covered Call Trades: Protective Puts and In-the-Money Strikes
- 95. Covered Call Writing to Generate Premium and Dividend Income
- 94. Covered Call Writing Net Debit Limit Orders
- 93. WHEN CALL STRIKES MOVE DEEP ITM EARLY IN A CONTRACT
- 92. Selling Deep OTM Cash-Secured Puts to Create High-Probability Returns
- 91. Portfolio Overwriting Analyzed
- 90. Entering a Collar Trade
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