The Blue Collar Investor
2,200 FOLLOWERS
Learn how to invest by selling stock options. Alan Ellman guides us through his system of options trading so you too can become CEO Of Your Own Money.
The Blue Collar Investor
37m ago
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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
The Blue Collar Investor
5d ago
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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
The Blue Collar Investor
1w ago
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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
The Blue Collar Investor
2w ago
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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).
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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
The Blue Collar Investor
2w ago
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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
The Blue Collar Investor
3w ago
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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
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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
The Blue Collar Investor
3w ago
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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
The Blue Collar Investor
1M ago
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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
The Blue Collar Investor
1M ago
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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
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1. Premium Membership:
https://www.thebluecollarinvestor.com/membership/
Best Discounted Packages:
2. BCI Package, our Best and mos ..read more
The Blue Collar Investor
1M ago
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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