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stock selection for covered call writing

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 […]

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Mean Analyst Rating (MAR): A New Addition to Our Premium Reports

The screening process for option-selling watchlists include fundamental analysis, technical analysis and common-sense screens. The BCI team is now adding a new screen the mean analyst rating (MAR) to replace the Scouter Rating we have been using for years. This will add an “institutional” component to our analysis.   What is MAR? An investment analyst […]

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Technical Analysis Impacting Stock Eligibility for Option-Selling

Fundamental analysis, technical analysis and common sense principles comprise the 3-pronged approach used in the BCI methodology for screening for option-selling candidates. Technical analysis is the factor that changes most frequently and is the main reason a stock will get “bumped” from our Premium Stock Reports. In our 11/10/2017 Premium Stock Report, MKS Instruments (NASDAQ: […]

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stock selection for covered call writing

Protecting Unrealized Profits When Share Price Accelerates

Covered call writing dilemmas can frequently result from positive circumstances. In August 2017, Vincent shared a trade he executed where an out-of-the-money strike was sold and share price had moved up significantly and was approaching the strike price. This means that Vincent realized an initial option premium return plus had an unrealized share appreciation component […]

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Theta and covered call writing

Executing Trades Based on Ex-Dividend Dates

Early assignment of our covered call positions is rare but possible. When it does occur, it is frequently related to an ex-dividend date. These are dates that we must own the shares in order to be eligible to receive the dividend on the distribution date. Premium members can access ex-dates of the eligible stocks in […]

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covered call writing and earnings reports

Avoiding Earnings Reports: Two Common Sense Perspectives

Never sell a covered call option or a cash-secured put for a stock with an upcoming earnings report. This is one of the most important rules in the BCI methodology. As a matter of fact, most other principles I refer to as guidelines because there is some leeway or flexibility to them. For example, the […]

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covered call writing calulations

Option Premiums: How Intrinsic Value Protects Time Value

Meaningful option calculations are essential in determining if the premiums meet our goals. To this end, we must understand the mathematics of these calculations to become elite covered call writers. Now don’t worry…we don’t have to become Albert Einstein to be successful. But we do have to have a general understanding of the components of […]

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Covered call writing and strike price selection

Achieving The Highest Covered Call Writing Returns Using The Blackjack Analogy

Covered call writers and all investors using stock options strategies have one thing in common: we all want to achieve the highest possible returns within the framework of our own personal risk tolerance. The focus of this site and The Blue Collar Investor is to provide the education and to share ideas that will help […]

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Technical analysis for covered call writing

Binary Options Are The Latest Rage, But Barely Like Traditional Options by Guest Author Tom Cleveland

Over the past few years, the popularity of traditional options has grown exponentially, as investors have been more willing to experiment with a broader set of investment genres. The market has responded to this more expansive behavior by creating a myriad of new products such as “weeklys” and “minis”, topics Alan has addressed on this […]

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