Comments on: Why Was My Short Out-Of-The-Money Put Exercised? https://www.thebluecollarinvestor.com/why-was-my-short-out-of-the-money-put-exercised/ Learn how to invest by selling stock options. Thu, 04 Feb 2021 10:25:38 +0000 hourly 1 By: Alan Ellman https://www.thebluecollarinvestor.com/why-was-my-short-out-of-the-money-put-exercised/#comment-375216 Thu, 04 Feb 2021 10:25:38 +0000 https://www.thebluecollarinvestor.com/?p=18233#comment-375216 In reply to Danny.

Danny,

A call option buyer can exercise that option at any time. These are known as “American Style Options”

After-hour news aside, it would make no sense to exercise that option at the strike, if higher than current market value. Shares can simply be purchased at the lower market price.

Alan

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By: Danny https://www.thebluecollarinvestor.com/why-was-my-short-out-of-the-money-put-exercised/#comment-375043 Thu, 04 Feb 2021 01:23:52 +0000 https://www.thebluecollarinvestor.com/?p=18233#comment-375043 If a cash covered call was made and it currently sits below the strike price and would expire worthless soon could it be exercised and using the option “buy” would those shares then now be owned by the person who made the call? I know it’s not normal but if the stocks were wanting to be retained even at a slightly higher cost.

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By: Alan Ellman https://www.thebluecollarinvestor.com/why-was-my-short-out-of-the-money-put-exercised/#comment-234024 Fri, 04 Oct 2019 12:15:57 +0000 https://www.thebluecollarinvestor.com/?p=18233#comment-234024 In reply to Tony.

Tony,

The screening for put-selling and covered call writing is precisely the same. In the BCI methodology, it involves a 3-pronged approach:

• Fundamental analysis (earnings and sales)
• Technical analysis (trend and momentum)
• Common-sense principles (like minimum trading volume etc.)

Here is a product file for educational tools that details the screening process and much more for put-selling.

PUT-SELLING PRODUCTS

FREE BEGINNER’S TUTORIAL

https://www.thebluecollarinvestor.com/beginners-corner-puts-selling/

BEST BOOK

https://www.thebluecollarinvestor.com/alan-ellmans-selling-cash-secured-puts/

BEST ONLINE DVD PROGRAM

https://thebluecollarinvestor.com/minimembership/selling-cash-secured-puts-basic-and-advanced-principles-2-part-dvd-series-workbook/

BCI PUT CALCULATOR

https://thebluecollarinvestor.com/minimembership/elite-put-selling-calculator-2/

Alan

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By: Tony https://www.thebluecollarinvestor.com/why-was-my-short-out-of-the-money-put-exercised/#comment-234022 Fri, 04 Oct 2019 08:33:34 +0000 https://www.thebluecollarinvestor.com/?p=18233#comment-234022 Hello Alan,

Watched your video tutorial on the internet about Put Options Selling.

Could you kindly tell me on How to find candidates for Put Options Selling.

Thanks,
Tony

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By: Alan Ellman https://www.thebluecollarinvestor.com/why-was-my-short-out-of-the-money-put-exercised/#comment-233768 Thu, 03 Oct 2019 10:15:04 +0000 https://www.thebluecollarinvestor.com/?p=18233#comment-233768 In reply to Ben.

Ben,

The education process can start today. Implementing investment strategies can start soon and option-selling can begin a bit later down the road.

We will need to build the $3k to between $10k – $15k to sell covered calls on ETFs and be properly diversified. This is a strategy I use in my mother’s account. As portfolio value grows, we can move to individual stocks.

To learn how to grow our portfolio wealth from $3k to $10k, consider the plan in my book, “Stock Investing for Students” and focus in on Chapter 6… “The Game Plan” It is user friendly and mostly automated:

https://www.thebluecollarinvestor.com/stock-investing-for-students/

While portfolio wealth is growing, option-selling education continues:

Free Beginner’s tutorial:

https://www.thebluecollarinvestor.com/beginners-corner/

Best book:

https://www.thebluecollarinvestor.com/alan-ellmans-complete-encyclopedia-for-covered-call-writing-scover/

Best DVD Program:

https://thebluecollarinvestor.com/minimembership/covered-call-writing-package-4-dvd-series-workbook/

Free Covered call writing calculator and other free resources

https://www.thebluecollarinvestor.com/free-resources/

It may seem a bit overwhelming, but approaching our financial well-being in a structured, non-emotional manner will ultimately lead to financial independence.

Alan

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By: Alan Ellman https://www.thebluecollarinvestor.com/why-was-my-short-out-of-the-money-put-exercised/#comment-233763 Thu, 03 Oct 2019 09:25:07 +0000 https://www.thebluecollarinvestor.com/?p=18233#comment-233763 In reply to Dietmar.

Dietrmar,

I can’t give specific financial advice in this venue but I can tell you that most stocks have been down recently and WEN is actually out-performing the S&P 500 since its decline in early September. See the screenshot below. WEN is the purple line.

There is still plenty of time for share recovery prior to the 18th before a decision needs to be finalized. In the interim, we take advantage of all of our exit strategy opportunities.

CLICK ON IMAGE TO ENLARGE & USE THE BACK ARROW TO RETURN TO BLOG.

Alan

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By: Ben https://www.thebluecollarinvestor.com/why-was-my-short-out-of-the-money-put-exercised/#comment-233765 Thu, 03 Oct 2019 07:51:08 +0000 https://www.thebluecollarinvestor.com/?p=18233#comment-233765 Greetings Alan,

My name is Benjamin . I’m located in Roanoke Virginia. I’m interested in learning how to trade Covered Call Writings. I’ve researched and listened to several YouTube videos however I’m still not quit comfortable in making my first trade or where to begin. I’ve funded Td Ameritrade with $3000 and I have several long term investments that I used Fidelity for. Can you offer me any assistance? Any information will be greatly appreciated.

Blessings to you,
Ben

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