Annualized Returns for Weekly and Monthly Options
The Blue Collar Investor
by Alan Ellman
4d 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
1w 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
2w 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
2w 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
2w 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
3w 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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The Importance of the 3% Guideline When Selling Out-Of-The-Money Cash-Secured Puts
The Blue Collar Investor
by Alan Ellman
1M ago
click ↑ 4 Featured On 10/20/2023, a BCI premium member shared with me a cash-secured put series of trades executed with Charles Shwab Corp. (NYSE: SCHW). Over the course of 9 months, SCHW dropped in price from approximately $83.00 to $50.87. This series of trades started by selling out-of-the-money (OTM) cash-secured puts which were exercised. The next 7 months involved writing (OTM) covered calls to help mitigate the severe share price decline. I was asked to analyze the trades and if continuing to write OTM covered calls was a viable solution to this losing scenario. Ove ..read more
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BCI PODCAST 120: Using the Nasdaq-100 Volatility Index (VOLQ) in Covered Call Writing Decisions
The Blue Collar Investor
by Alan Ellman
1M ago
Watch Video: Listen To Audio Version: VOLQ measures the imp[lied volatility of the NDX or the Nasdaq 100 Index. This podcast proposes an ultra-low risk strategy based on VOLQ and QQQ, an ETF that consists of 100 of the largest non-financial companies that are listed on the Nasdaq exchange. Although the strategy is ultra-defensive, annualized returns are still significant. 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 mos ..read more
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Setting Up a Bullish Covered Call Writing Monthly Portfolio
The Blue Collar Investor
by Alan Ellman
1M ago
click ↑ 4 Featured This article will highlight one of the many ways we can establish a monthly covered call writing portfolio during bullish market conditions. We will utilize a hypothetical portfolio of $100k and use 5 different securities, 3 stocks and 2 exchange-traded funds (ETFs). Premium Stock Report for the November 2023 contracts (10/23/2023 – 11/17/2023) FUTU, ZS and JBL are eligible securities in 3different industry segments. No earnings reports are due prior to expiration of the November 2023 contracts. All have adequate option liquidity (open interest- OI). ETF (Exchange-traded ..read more
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Ask Alan # 215: Stock Selection for The Poor Man’s Covered Call
The Blue Collar Investor
by Alan Ellman
1M ago
———- The Poor Man’s Covered Call is a covered call writing-like strategy where a long-term deep in-the-money LEAPS option is purchased instead of a stock, making entry into the trade less costly than traditional covered call writing. This video details the pros & cons of the strategy and offers some suggestions as to the best securities to use when the strategy is implemented ———- 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 ..read more
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