click ↑ 4 Featured Portfolio overwriting is a covered call writing-like strategy seeking to both generate cash flow and retain the underlying shares. Share retention may be motivated by our bullish long-term assessment of the security and/or concern for negative capital gain tax consequences, if exercised and shares are sold. Strategy implementation Sell weekly (other expirations can be used) deep out-of-the-money (OTM) call options with a goal of initial annualized returns between 10% and 20% Since deep OTM call strikes are used, there will be significant upside potential to our trades Sele ..read more

Watch Video: Why will a strike price disappear in the middle of a contract? Why will some strikes have odd numbers such as dollars and cents? Corporate events like stock splits, mergers and acquisitions and special dividends are usually responsible for such changes. This podcast will detail such a contract adjustment with a popular ETF. https://thebluecollarinvestor.com/minimembership/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://theb ..read more

click ↑ 4 Featured Covered call writers will frequently find themselves in a position where the short call is expiring in-the-money (ITM), while still wanting to use the same underlying shares for the next contract cycle. How should this be managed? 3-approaches to be analyzed Close both legs of the trade on expiration Friday and open a new one on Monday Allow for exercise at the current strike price and open a new trade on Monday Roll the option prior to 4 PM ET on expiration Friday (could be earlier) Pros & Cons of each approach Closing both legs and re-opening on Monday: Th ..read more

———- A real-life trade with AVGO is analyzed to determine the pros & cons of closing both legs of the trade (mid-contract unwind -MCU) exit strategy, versus taking no action and continuing to monitor the trade. Trade entry, calculations and the Trade Management Calculator (TMC) are analyzed in this video. ———- 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 & P ..read more

Watch Video: Rolling-up is a covered call writing exit strategy where the original short call is closed, and new call is opened at a higher strike price. This podcast features a rolling-up trade in the same contract expiration cycle where calculations and trade rationale are used to analyze the efficacy of such a trade. https://thebluecollarinvestor.com/minimembership/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 ..read more

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 sce ..read more

click ↑ 4 Featured Covered call writing trades have 2 components: we are long the stock and short the option. When evaluating the success or lack thereof for our trades, we must factor in both legs of the trade. In this article, we will analyze an example of how we can focus on the negative aspect of a trade but ignore the huge positive status of the trade. A real-life example with an exchange-traded fund (ETF), Vanguard Russell 1000 Growth Index Fund (Nasdaq: VONG) was shared with me by a BCI member and will be analyzed for this article. VONG trades overview 6/13/2023: Buy 4000 x VONG at $5 ..read more

click ↑ 4 Featured The option Greeks are a series of calculations that measure the factors that impact our option prices and risk. The Black-Scholes Model can be used to determine the theoretical value for a call or put option based on these factors: Volatility Type of option Stock price Time to expiration Strike price Risk-free interest rate This article will provide brief definitions of the option Greeks and then use Apple Computer, Inc. (Nasdaq: AAPL) to show how the theoretical value of the Greeks is calculated using an option’s calculator. Option Greeks defined Delta: The am ..read more

———- Alan, I’ve been using the Trade Management Calculator for over a year and it has been a game-changer. My question relates to rolling-out entries into the TMC over the 2 contracts. Can you provide an example, preferably using rolling-out-and-up covered call trades? Thanks so much, Iris ———- 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://th ..read more

click ↑ 4 Featured When establishing our covered call writing and cash-secured put portfolios, it is critical to factor in stock and industry diversification and cash allocation. Our BCI premium stock & ETF reports along with our Portfolio Setup Spreadsheet will be invaluable assets in achieving these goals. BCI Premium Stock Report example The details of this chart are difficult to read in a blog format, so I listed the industry breakdown on the right and the securities selected under the chart. Use the BCI screening process to select elite-performing stocks that also factor ..read more