The Blue Collar Investor

To become an elite option-seller, we must master the 3-required skills... stock selection, option-selection and position management. With exit strategies, not only do we have to know which ones will enhance the current trade status but also how and when to implement them. This podcast will show a real-life example with MGM Resorts International (NYSE: MGM) regarding rolling-down covered call writi...

Exit strategies can turn losing trades into profitable ones. This podcast will show a real-life example with NIKE Corp. (NYSE: NKE) where Alan rolled down twice in the latter part of a contract and put cash in his pocket on a stock that declined in value. The 20%/10% guidelines and a broker statement are included in the presentation. BECOME A BCI MEMBER TODAY: https://www.thebluecollarinvestor.com...

When stock price moves up, put value moves down. After selling an OTM cash-secured put, if share price appreciates significantly, we can close it for a small percentage of the original option sale. This podcast focuses in on whether it makes sense to roll that option up to a higher strike in the same contract month. The pros and cons of such a maneuver are discussed using a real-life example with...

Position management is a critical aspect of covered call writing success. The key is to identify when these opportunities present and how and why to implement them. There are times when no action is the best choice. In this podcast, a real-life example with KMX is used to show calculations evaluating rolling-up in the same contract month. Both versions of The Ellman Calculator are used to demonstr...

I am often asked, "What Delta should I use for my covered call strikes?" This podcast discusses how strategy goals, not Delta stats, should impact our option strike selections. Initial time-value return goal range, market assessment and personal risk-tolerance are emphasized. BECOME A BCI MEMBER TODAY: https://www.thebluecollarinvestor.com/membership/    SEE BCI COURSE & PRODUCTS : h...

Implied volatility (IV) is a critical concept to option traders. There are some misconceptions regarding the significance of these IV stats. This podcast will define IV and use a real-life example with an exchange-traded fund to show the expected price movement during the remaining 20-days of the option contract. BECOME A BCI MEMBER TODAY: https://www.thebluecollarinvestor.com/membership/  &n...

This podcast will dissect a proposed no-risk strategy involving closing a covered call trade when share price moves to breakeven. A real-life example with PayPal Holdings, Inc. (NASDAQ: PYPL) is used to consider intrinsic-value, time-value as well as covered call writing calculations. BECOME A BCI MEMBER TODAY: https://www.thebluecollarinvestor.com/membership/    SEE BCI COURSE & PRO...

When share price moves well above a covered call strike, we may decide to lock in a large percentage of the unrealized profit by purchasing a protective put, converting it to a collar trade. This podcast compares this conversion to closing the entire trade. Is there a 3rd choice?.br> BECOME A BCI MEMBER TODAY: https://www.thebluecollarinvestor.com/membership/    SEE BCI COURSE & PROD...

Out-of-the-money options are rarely exercised. There are rare exceptions. In this podcast, a real life example with Boeing (BA) is examined where we experienced such an aberration. The mechanics of exercise is discussed and the specific reasons for exercise is explained..br> BECOME A BCI MEMBER TODAY: https://www.thebluecollarinvestor.com/membership/    SEE BCI COURSE & PRODUCTS : ht...

The collar trade is covered call writing with the addition of a protective put. This podcast will focus in on a scenario when the stock price moves well above the call strike using a real-life example with TEAM. Trade calculations, trade management and an introduction to the BCI Collar Calculator is detailed in this presentation..br> BECOME A BCI MEMBER TODAY: https://www.thebluecollarinvestor.com...

Retail investors may confuse 2 very different strategies that sound the same. Covered puts is a risky strategy that involves shorting a stock and selling a put option. The trader is obligated to replace the "borrowed" stock and buy the shares at the strike price. Selling cash-secured puts is a low-risk strategy appropriate for most retail investors that involves selling a put option and placing th...

Strike price selection for covered call writing and selling cash-secured puts is the 2nd of the 3 required skills. The CBOE Volatility Index or VIX is a key statistic we should evaluate when making these decisions. It should be used in conjunction with overall market assessment, economic data and personal risk-tolerance. This podcast will revue the definition and history of the VIX, analyze its re...

After entering a covered call trade and the stock price accelerates exponentially, the cost-to-close our position appears prohibitively high. This podcast will use a real-life example with SolarEdge technologies, Inc. (NASDAQ: SEDG) to break down the total premium into time-value and intrinsic-value components and detailing if and when to close and the next=step choices.br> BECOME A BCI MEMBER TOD...

After entering a covered call trade, share price may decline jeopardizing the success of our trade. Frequently, we must take action to mitigate. This podcast will focus in on the "hitting a double" exit strategy where the short call is bought back and the same option re-sold for a 2nd income stream in the same month with the same cash investment. The 20%/10% guidelines are explained and applied to...

After a stock is purchased, when is the best time to sell the option? Should we wait for share appreciation to make more money on the trade. This podcasts breaks down the 3 possible outcomes and incorporates the option Greeks into our understanding of how and why to manage our trade timing BECOME A BCI MEMBER TODAY: https://www.thebluecollarinvestor.com/membership/    SEE BCI COURSE &amp...

Selling options against Biotech companies frequently generate impressive premium returns. This podcast will discuss the relationship between implied volatility and option premium. Option calculations, exit, strategies, and chart analysis will be addressed in this presentation BECOME A BCI MEMBER TODAY: https://www.thebluecollarinvestor.com/membership/    SEE BCI COURSE & PRODUCTS : h...

Calculations made for option-selling transactions and total position profit & loss can be quite different. This podcast examines a hypothetical trade that uses the rolling-down and the mid-contract unwind exit strategies. Calculations are discussed at various points in the trades and the Ellman Calculator assist in our trade decisions. BECOME A BCI MEMBER TODAY: https://www.thebluecollarinvestor.c...

When our strike prices are in-the-money as expiration approaches and we don't want our shares sold, we must close the current month option and roll to the next month. Rolling can include rolling-out to the same strike or rolling-out-and-up to a higher strike. This podcast breaks down the calculations to show why the total cost isn't the most important stat that should determine our trade decisions...

Covered call writing and blackjack are certainly different approaches to making money but they do have at least one common thread. Both can be managed to increase returns. Examples of card and trade management are included in this podcast. BECOME A BCI MEMBER TODAY: https://www.thebluecollarinvestor.com/membership/    SEE BCI COURSE & PRODUCTS : https://thebluecollarinvestor.com/stor...

Option terminology can be tricky. The strategy of cash-secured call options can be confused with cash-secured puts of covered call writing. This strategy will be defined with pros and cons. A hypothetical trade will be established with 4 outcomes analyzed. BECOME A BCI MEMBER TODAY: https://www.thebluecollarinvestor.com/membership/    SEE BCI COURSE & PRODUCTS : https://thebluecollar...

The Poor man's Covered call strategy is much more than "covered call writing, but cheaper" The are a multitude of moving parts that must be mastered to be successful. This podcast will focus in on how to set up the initial PMCC trade based on a specific formula and how to use the BCI PMCC Calculator to assist with enhancing the success of our trades. BECOME A BCI MEMBER TODAY: https://www.thebluec...

Strike price selection is one of our 3 required skills. Choosing in-the-money strikes adds an additional component to our premiums and affords greater downside protection in bear and volatile markets. Calculations are highlighted using the Ellman Calculator BECOME A BCI MEMBER TODAY: https://www.thebluecollarinvestor.com/membership/    SEE BCI COURSE & PRODUCTS : https://thebluecolla...

Stock selection for option-selling strategies includes fundamental analysis, technical analysis and common-sense principles like minimum trading volume. Adding MAR to this process will add an institutional component that will enhance the screening to even  higher level. MAR is defined as well as the ranking system and free sites to locate MAR statistics. BECOME A BCI MEMBER TODAY: https://www...

Selling out-of-the-money (OTM) cash-secured puts creates an opportunity to "buy a stock at a discount" if the put option is exercised. If unexercised, we generate a monthly cash flow via the option premium. When one of our stocks declines in value, we can lower our cost-basis by selling OTM puts. This podcast will detail such a series of trades with Halliburton Company (HAL). BECOME A BCI MEMBER T...

Managing our covered call writing trades is essential to achieving the highest possible returns. In this podcast the "hitting a double" exit strategy will be highlighted with a real-life example with Procter & Gamble. After selling the initial short call, it is bought back when share price declines  and re-sold when share price recovers. Specific guidelines as when to close the short call...