click ↑ 4 Featured The Poor Man’s Covered Call (PMCC) is a covered call writing-like strategy where LEAPS options are purchased instead of actual stocks or exchange-traded funds (ETFs). Weekly or monthly short calls are written against the long calls. LEAPS options have expirations between 9 and 24 months out. Typically, deep in-the-money (ITM) strikes are used because they have Delta values approaches “1”, and therefore mirror the price action of the stock itself. The strategy allows investors to enter covered call trades with less capital exposure because the LEAPS cost ..read more

Watch Video: Listen To Audio Version: Implied volatility is critical to our understanding and implementation of our covered call writing and put-selling trades. But, what about IV Rank and IV Percentile. This podcast will define and explain all IV terms and offer perspectives of when and where they have applications. 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://thebluecolla ..read more

click ↑ 4 Featured We enter a covered call trade and share price rises exponentially, leaving the strike deep in-of-the-money (ITM). Should we close the position since we cannot benefit from additional share appreciation? Should we take no action and continue to monitor the trade with our 20%/10% guidelines in place? In this article, a real-life example, shared with me by a premium member, with Broadcom Inc. (Nasdaq: AVGO) will be analyzed. In addition to the huge share appreciation, this trade stood out because a LEAPS option was originally sold and still had 13+ mon ..read more

———- 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

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

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

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

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

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

———- 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