Ask Alan # 217: Entering a Poor Man’s Covered Call Trade
The Blue Collar Investor
by Alan Ellman
2d ago
———- Alan, Please tell me what parameters you recommend when setting up your Poor Man’s Covered call Trades. How do you factor in premium extrinsic-value and strike prices? Thank you, Alan, Courtney ———- The BCI Package link: https://thebluecollarinvestor.com/minimembership/bci-investor-program/ TMC Package: https://thebluecollarinvestor.com/minimembership/bci-trade-management-system/ BECOME A BCI MEMBER TODAY: https://www.thebluecollarinvestor.com/membership/ SEE BCI COURSE & PRODUCTS : https://thebluecollarinvestor.com/store/ FIND BCI ON AMAZON https://amzn.to/Nx2Zqk More Video: For th ..read more
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Analyzing and Correcting Our Covered Call Writing Mistakes + Last Chance to Register for BCI Webinar
The Blue Collar Investor
by Alan Ellman
1w ago
click ↑ 4 Featured When we execute our covered call writing trades, we base our decisions on sound fundamental, technical and common-sense principles. To master our option strategies and elevate our returns to the highest possible levels, we must analyze our trades to evaluate if we could have improved our results. In this article, a real-life example with Occidental Petroleum Corp. (NYSE: OXY) will be investigated. This series of trades was shared with me by one of our BCI premium members. OXY trades 11/13/2023: Buy 100 x OXY at $62.81 11/13/2023: Sell-to-open (STO) 1x 12/8/2023 $64.00 call ..read more
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Rolling-Out-And-Up to In-The-Money Strikes
The Blue Collar Investor
by Alan Ellman
2w ago
click ↑ 4 Featured Using covered call writing exit strategies is an essential skillset needed to achieve the highest possible returns. The calculations for rolling-out-and-up to in-the-money call (ITM) strikes is a bit more complicated than some of our other exit strategies. This article will analyze a real-life example using United Therapeutics Corp., Inc. (Nasdaq: UTHR). What is rolling-out-and-up? We close the near month ITM call and sell a later-dated, higher strike that is lower than current market value. When do we consider this exit strategy? The current strike is ITM and the ..read more
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BCI PODCAST 122: Should I Roll-Out My Deep In-The-Money Call Option Mid-Contract?
The Blue Collar Investor
by Alan Ellman
2w ago
Watch Video: Listen To Audio Version: https://podcasters.spotify.com/pod/show/alan-ellman/episodes/BCI-PODCAST-122-Should-I-Roll-Out-My-Deep-In-The-Money-Call-Option-Mid-Contract-e2hduj7 When a covered call option moves deep in-the-money early in the contract, exit strategy opportunities will present. Should we roll the option out or out-and-up? Should we close both legs of the covered call trade or should we take no action? This podcast will evaluate a real-life trade with JD.com, Inc. where all 3 choices will be considered and evaluated. Calculations using our BCI spreadsheets will be used ..read more
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Annualized Returns for Weekly and Monthly Options
The Blue Collar Investor
by Alan Ellman
3w ago
click ↑ 4 Featured Over the years, I have presented the pros & cons of weekly options versus monthly expirations for our covered call writing and put-selling trades. One of the advantages to weekly expirations is a greater annualized return, in most cases. In this article, I will detail a real-life example with Pinterest, Inc. (NYSE: PINS), a stock on our premium watchlist on 12/4/2023. PINS: Weekly and Monthly option-chains on 12/4/2023 PINS was trading at $34.18 on 12/4/2023 The weekly (12/8/2023) expiration, $35.00 call had a published bid price of $0.21 The Month ..read more
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Calculating Covered Call Writing & Cash-Secured Put Trades for the Same Stock and Similar Moneyness
The Blue Collar Investor
by Alan Ellman
1M ago
click ↑ 4 Featured Should I write a covered call or sell a cash-secured put on an elite-performing stock or ETF? I use both but slightly favor covered call writing. Both have worked quite well for me over the past (nearly) 3 decades. On 11/16/2023, I thought it would be instructive to select a stock from our premium watch list and calculate initial covered call writing and cash-secured put returns. I (randomly) chose Pinterest, Inc. (NYSE: PINS) and used 2 strikes out-of-the-money (OTM) from current market value at the time of the trades. PINS Option Chain on 11/16/2023 for the ..read more
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Ask Alan # 216: Establishing the Cost Basis of an Adjusted Covered Call Trade
The Blue Collar Investor
by Alan Ellman
1M ago
———- After establishing a covered call trade, exit strategy opportunities may arise. In this video, a series of trades with OXY are analyzed from trade entry, initial calculations, exit strategy adjustment and post-adjusted realized and unrealized returns using the BCI Trade Management Calculator (TMC). ———- The BCI Package link: https://thebluecollarinvestor.com/minimembership/bci-investor-program/ TMC Package: https://thebluecollarinvestor.com/minimembership/bci-trade-management-system/ BECOME A BCI MEMBER TODAY: https://www.thebluecollarinvestor.com/membership/ SEE BCI COURSE & PRODUCT ..read more
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Using Technical Analysis to Enhance Our Covered Call Writing and Cash-Secured Put Trades
The Blue Collar Investor
by Alan Ellman
1M ago
click ↑ 4 Featured In our BCI methodology, there is a 3-pronged approach to our stock screening process: Fundamental analysis (sales & earnings growth) Common-sense principles (minimum trading volume, avoiding earnings reports & more) Technical analysis (reading a price chart) This article will focus on technical analysis and will utilize real-life examples with bullish, mixed and bearish price charts. Technical indicators used in the BCI screening process (feel free to use your favorites) Exponential moving averages (measures trend) MACD histogram (measures trend & moment ..read more
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BCI PODCAST 121: What is a SPAC (Special Purpose Acquisition Company)?
The Blue Collar Investor
by Alan Ellman
1M ago
Watch Video: Listen To Audio Version: A SPAC, also known as a “blank check company” is where an IPO is established to raise cash for a future merger with a private company with great growth potential. This podcast defines, Examples are given and guidelines are discussed for investment decisions. The BCI Package is highlighted at the end of the podcast: BCI investor Program ——


—— 1. Premium Membership: ⁠https://www.thebluecollarinvestor.com/membership/⁠ Best Discounted Packages: 2. BCI Package, our Best and most Comprehensive Investment package: https://thebluecollarinvestor.com/minimemb ..read more
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Rolling-Out Decisions for Our Covered Call Writing Trades: 3 Strategies Analyzed
The Blue Collar Investor
by Alan Ellman
1M ago
click ↑ 4 Featured When our covered call writing strikes are expiring in-the-money (with intrinsic-value), our shares will be sold at the strike price. We may opt to retain the shares by rolling the option to a later date. This article will highlight 3 paths we can take and discuss the factors that will guide us to our final decisions. Hypothetical rolling scenario 9/18/2023: 100 x BCI purchased at $48.00 9/18/2023: STO 1 x 10/20/2023 $50.00 call at $1.50 10/20/2023: BCI trading at $52.00 10/20/2023: If we take no exit strategy intervention, shares will be sold at $50.00 (allowing exerc ..read more
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