As covered call writers, we have all looked at options chains. That’s where we determine how much cash will be generated into our accounts when we sell our options. It’s fun! We first inspect the current price of the underlying security (stock or ETF). Then we check out the closest strike prices (I-T-M, A-T-M and […]
Analyzing a Covered Call Trade by Barry Bergman, Director of Research, The Blue Collar Investor Corp.
Covered call writing trades can be analyzed from many perspectives. Each analysis represents an enlightening experience as we all learn from each other and share ideas and conclusions. We recently received a series of emails from one of our more experienced and savvy premium members regarding several trades he executed a short while ago. I asked […]
Entering Our Covered Call Positions Mid-Contract
In the BCI methodology for covered call writing we use predominantly 1-month options. There are times, however, where we find cash in our accounts (mid-contract) that is inactive. This may be due to closing a position early either because the share price declined significantly or accelerated exponentially. Perhaps Grandma gave you a generous birthday present. […]
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 […]
Using Multiple Exit Strategies in the Same Contract Month
Covered call writers can be good at what they do or great at it. They can generate decent returns or the highest possible returns. One of the mission statements of The Blue Collar Investor is to assist each other in achieving the greatest levels of success. The implementation of exit strategies when indicated is critical to this […]
Covered Call Writing- Using the Multiple Tab of the Ellman Calculator
Selling stock options is all about generating a cash flow. Calculating our initial profit, the potential for more profit (upside potential) and the protection of our initial profit (downside protection as opposed to breakeven of the entire position) is critical in making the most educated investment decisions. Accessing this information from the “Multiple Tab” of […]
Technical Analysis: How to Use Volume in our Covered Call Decisions
When learning how to trade options volume must always be factored in. Volume is the number of shares or contracts that trade over a specific period of time, usually one day. On a chart, volume is represented as a histogram (vertical bars) overlaid on or below the price chart. This indicator is an essential part […]
Mid-Contract Unwind Exit Strategy: A Real Life Example
To maximize our covered call writing profits it is critical to take advantage of our exit strategy opportunities. Last week I posted a few comments regarding the mid-contract unwind exit strategy and received several emails asking for more information about the trade I alluded to. In this week’s article I will walk through the steps […]
Covered Call Writing Using The Blue Collar Methodology
Fundamental analysis, technical analysis, common sense principles and calculations are all critical considerations when selling stock options the Blue Collar way. Since this is my first article written on our newly enhanced web site (hope you like it!) I thought it appropriate to use a real-life example to review the basic tenets of our BCI […]
Portfolio Management- Organized Lists To Improve Our Option Profits For Covered Call Writing
How to trade options: I am a big believer in setting yourself up for success. This is accomplished through education, motivation, commitment and organization. Investors reading this article and others are definitely seeking education, and are motivated and committed. However, without organization the process will become difficult and perhaps unmanageable. As we create a watch list […]
Podcast
- 54. Selecting the Best Strike Prices for Our Collar Trades
- 53: ITM Cash-Secured Puts: Allow Exercise or Roll the Option?
- 52. Making Money Selling Options with Technology Stocks
- 51. Timing Our Covered Call Trades
- 50. Exit strategies Must Be Timed Properly
- 49. Analyzing a Multi Leg Covered Call Rolling Down Series of Trades
- 48. Rolling Deep OTM Cash Secured Puts
- 47. Rolling Up in the Same Contract Month
- 46. Should Delta Be the Sole Criteria for Covered Call Writing Strike Selection
- 45. Implied Volatility and Expected price Movement During the Life of Option Contracts
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