Episodes
-
126. Analyzing the Status of a Rolling-Down Trade
Rolling-down is one of the covered call writing exit strategy opportunities we can benefit from. In this podcast, a real-life example with WSM is examined where a 5% share loss is mitigated down to 0.9%. Calculations using the multiple tab of the BCI calculators is detailed. The following links…
more -
124. Dividends and After-Hours News Causing Exercise of OTM Call Strikes
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 following...
-
123. Implied Volatility, IV Rank and IV Percentile Defined and Practical Applications
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 following...
-
BCI PODCAST 122: Should I Roll-Out My Deep In-The-Money Call Option Mid-Contract?
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…
more -
BCI PODCAST 121: What is a SPAC (Special Purpose Acquisition Company)?
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...
-
120. Using the Nasdaq-100 Volatility Index (VOLQ) in Covered Call Writing Decisions
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,...
-
119. Establishing Our Cost-Basis for Long-Term Holdings
There are 2 distinct cost-basis scenarios for covered call writing: 1. Trade initiation cost-basis: Stock price at the time of the trade for at-the-money and out-of-the-money strikes The strike price for in-the-money strikes as we deduct the intrinsic-value of the premium from the stock price If…
more -
118. Adjusting Our Portfolio Mix to Achieve Diversification and Cash Allocation
An analysis of the Dow 30 stocks is highlighted to show how to diversify by stock, industry and allocate a similar amount of cash per-position. The BCI Package (our best and most comprehensive investment package) is mentioned. https://thebluecollarinvestor.com/minimembership/bci-investor-program/...
-
117. When a Covered Call Strike Moves $1000.00 In-The-Money
This actually occurred with Amazon.com. This podcast evaluates the initial trade structuring, calculations, viability of rolling the option as well as lessons learned to sharpen our trading skills. The BCI Package (our best and most comprehensive investment package) is mentioned....
-
116. How to Execute a Covered Call Trade with a Buy/Write Combination Form
Covered call writing trades can be implemented in 2 ways. We can use legging-in where the trade is accomplished in 2 distinct trades and with the buy/write combination form where the stock is purchased and the option sold simultaneously with a new debit limit order. Both approaches are shown…
more -
115. Establishing Our Cost Basis When Rolling-Out-And-Up On 2 Different Days
When calculating our covered call writing trades, we must have a clear idea as to what our cost-=basis is at the time of the trade. This may be quite different from an overall series of trades or for tax purposes. This podcast will focus on a real-life example with SIL to shop 3 different...
-
114. The Poor Man's Covered Call Selecting the Best LEAPS Strikes
When initiating our PMCC trades, we must make sure the long and short call strikes meet our specific initial trade structuring formula. This equation is explained and used with a real-life example with SPY. Measuring time-value components is critical to all aspects of these trades. Premium...
-
113. How to Select the Best Strikes for Collar Trades
Collar trades are covered call writing trades with a protective put. This podcast will discuss strike selection, calculations and rationale for structuring our collar collar trades. The BCI Collar Calculator will manage the calculations after reviewing the option-chain. A real-life example with…
more -
112. Using Covered call Options and Stock Dividends in Low Interest Rate Environments
This podcast will evaluate the best-performing Dow 30 stocks and craft a 3-income strategy which incorporates share appreciation, option premium and dividend capture. Methodology on stock selection, option selection and risk avoidance will be included. Premium Membership:...
-
111. Rolling Down on a Sharp Market Decline at the end of a Contract
Exit strategies are critical to achieving the highest degree of trading success. This podcast will highlight a trade executed with XLV where there was an 1800 point drop in the Dow 30. It demonstrates how to mitigate losses using preparation and opportunity. Premium Membership:...
-
110. Exit Strategies Are Important But Must Be Timed Properly
In this podcast, a series of real-life covered call writing trades will be analyzed with MGM. Initial trade structuring, exit strategy implementation and trade timing are key components of this podcast. Premium Membership: https://www.thebluecollarinvestor.com/membership/ ----- Best Discounted...
-
109. Delta and Strike Selection for Covered call Writing
Should our covered call writing strikes be determined by the delta of those strikes? This podcast will make a case that our strikes should be based and our strategy initial return goals, personal risk-tolerance and overall market assessment. A real-life example with AMD with a defensive posture...
-
108. Establishing Our Cost Basis in a Multi Step Managed Trade
Using the correct cost-basis statistic is critical to our option-selling success. This podcast will highlight the appropriate cost-basis when initiating a covered call writing trade, when managing that trade and after closing all legs of the trade. The cost-basis is not the same for these...
-
107: Even and Odd Stock Splits Understanding Contract Adjustments
Corporate events like mergers and acquisitions, special 1-time dividends and stock splits will result in changing parameters of our option contracts. This can become confusing. In this podcast, even and odd stock splits and the resulting contract adjustments will be discussed with real-life...
-
106. "Hitting a Double" with Procter & Gamble: A Covered Call Writing Exit Strategy
Managing our covered call trades with exit strategies will allow us to maximize our returns as we mitigate losses and enhance gains. In this podcast, generating 2 income streams in the same contract month with the same stock and investment resulted in more than doubling the initial returns.…
more -
105. The Poor Man's Covered Call: Rolling Options
Exit strategies are critical to our overall option-trading success. This podcasts will detail how to roll options, both up and down, when using the PMCC strategy. The BCI PMCC Calculator will be used to facilitate our trading decisions. Premium Membership:...
-
104. Special 1 Time Dividends and Contract Adjustments
Special 1-time cash and equity dividends will result in option contract adjustments. The Options Clearing Corporation (OCC) will make the alterations such that buyers and sellers of calls and put remain "whole" Ticker symbols and deliverables may change or tickers may stay the same while strikes...
-
103. The Collar Strategy Using Long-Term Put Expirations
This podcast discusses the pros and cons when using longer-term put expirations with our collar trades. These are covered call writing trades with additional protective puts. The BCI Collar Calculator will assist with the trade returns which, on the surface, appear impressive but the negatives…
more -
102. Analyzing Market Assessment Based on Portfolio Setup
This podcast represents an analysis of the investor's thought process based on examination of the stocks and options selected for this covered call writing portfolio. Included in the podcast are discussions of personal risk-tolerance, implied volatility, initial time-value returns, the…
more -
101. Covered Call Writing: "Hitting a Double" on the Last day of a Contract
One of our covered call writing exit strategy opportunities involves closing the original option and re-selling it a second time, thereby generating 2 income streams in the same contract month. In the BCI methodology, this is referred to as "Hitting a Double" This podcast shows a real-life…
more -
100. Analyzing LEAPS for The Poor Man's Covered call Strategy (PMCC)
The PMCC allows investors to enter a covered call at a much lower cost than traditional covered call writing. There are pros and cons to this strategy. This podcast will detail how to use Delta to assist in the selection of our long LEAPS position. What is the best Delta to use? What is the...
-
99. Anatomy of a Reverse Stock Split
Various corporate events like stock splits, mergers and acquisitions will results in share price changes that require the Options Clearing Corporation to adjust option contracts such that buyers and sellers of calls and puts are made whole. This podcast focuses in on reverse stocks splits, ther...
-
98. Analyzing LEAPS Options for the Poor Man's Covered Call
The Poor Man's Covered call strategy uses LEAPS options as a replacement for stock and ETF shares. The cost to enter the trade is much lower than using traditional covered call writing. of course, there are pros & cons to this PMCC strategy. This podcast addresses how to select the best LEAPS for...
-
97. Managing Our Poor Man's Covered Call Trades When Share Price Drops Substantially
Exit strategies for our option-selling trades is a critical aspect for successful investing. When there is a precipitous drop in share price such that it is trading below the (once) deep in-the-money LEAPS strike, we can close the entire position or roll-down to lower but still out-of-the-money...
-
96. Protecting Our Covered Call Trades: Protective Puts and In-the-Money Strikes
Covered call writing is a low-risk option-selling strategy that can be crafted into an even more defensive strategy. In this podcast 2 such approaches are discussed. First, adding a protective put to the trade, a strategy known as the "collar" An alternative approach, using in-the-money call...
-
95. Covered Call Writing to Generate Premium and Dividend Income
A covered call writing strategy can be crafted to generate 3 income streams: 1. Option premium 2. Share appreciation when using out-of-the-money call options 3. Dividend income This podcast will focus in on TLT a treasury-based exchange-traded fund that generate 12 dividends per calendar year....
-
94. Covered Call Writing Net Debit Limit Orders
Covered call trades can be executed by "legging-in" which is buying the stock and selling the call option in 2 distinct trades. This podcast will discuss another way to enter a covered call trade using a "buy-write combination form" where the 2 legs are executed simultaneously using a "net debit...
-
93. WHEN CALL STRIKES MOVE DEEP ITM EARLY IN A CONTRACT
After entering a covered call trade and share price accelerates substantially, the strike is deep ITM. There are 3 potential paths to follow which are explored in this video: 1. The mid-contract unwind exit strategy 2. Rolling the option 3. Take no action and "allow" assignment A real-life…
more -
92. Selling Deep OTM Cash-Secured Puts to Create High-Probability Returns
Using weekly deep out-of-the-money cash-secured puts with Deltas of less than 10 can generate significant annualized returns with greater than 90% probability of success. This podcast uses a real-life example from one of Alan's portfolios with Apple Computer that incorporates both initial...
-
91. Portfolio Overwriting Analyzed
When seeking to generate additional income by writing covered calls on long-term buy-and-hold securities, there is a specific approach we use for covered call writing. Strike selection and position management are specific to our strategy goals. This podcast uses a real-life example with Apple...
-
90. Entering a Collar Trade
This podcast will detail the 3 legs of a collar trade and how to determine the best option strike prices to use. The calculations will be shown using the BCI Collar Calculator which will show maximum gain and loss. A real-life example with SLV will be used to bring home the essential information....
-
89. Am I Losing Money When I Buy Back My Deep ITM Covered Call Options?
Closing a deep ITM call option may appear quite expensive on the surface. However, when we break down the calculations and evaluate both legs of a covered call trade, the results may tell a different story. A real-life example with SolarEdge Technologies, Ind. (SEDG) is used to demonstrate such a...
-
88. Creating a Portfolio of Weekly Cash-Secured Puts
Whether we are seeking to generate significant cash-flow or to buy a stock at a discount, selling put options can be an enticing low-risk strategy This podcast will detail the reasons we should consider selling cash-secured puts using a real-life example with Square, Inc. (SQ) by selling weekly...
-
87. Bear Market Concerns and Our Option Selling Portfolios
Our option-selling portfolios can be crafted to all market conditions. This podcast will address the structuring techniques we can use in challenging market conditions. These will include strike price selection, Beta decisions, implied volatility decisions, the use of ETFs, the incorporation of...
-
86. How to Use Technical Analysis and Market Assessment for Strike Selection
Analyzing overall market conditions along with identifying bullish and mixed technical price charts will guide us to the best price selections for option-selling. This podcast will review market conditions in January 2020 along with an analysis of 2 price charts to provide guidance as to the way…
more -
85. Automating the 20% /10% Guidelines for Covered Call Writing
Exit strategies can dramatically enhance our covered call writing returns. In this podcast, a real-life example with NKE is taken directly from one of Alan's portfolios where multiple rolling-down exit strategy opportunities were executed. These steps turned a losing trade into a profitable one....
-
84. Analyzing and Calculating Multi Leg Rolling Down Covered Call Trades
Exit strategies can dramatically enhance our covered call writing returns. In this podcast, a real-life example with NKE is taken directly from one of Alan's portfolios where multiple rolling-down exit strategy opportunities were executed. These steps turned a losing trade into a profitable one....
-
83. Setting Up a Portfolio of Nasdaq and S&P 500 Stocks in a User-Friendly Manner
Diversification is a key requirement for successful option-trading. This podcast details how to set up a portfolio of large-cap tech companies as well as blue-chip companies in a time-efficient manner. The Select sector SPDRs and Invesco QQQ Trust are discussed with graph descriptions and...
-
82. Risky Stocks Can Result In Challenging Decisions
Using highly volatile stocks with covered call writing can result in trade management dilemmas. This podcast will incorporate the pros and cons of high implied-volatility stocks, initial time-value calculations and the time-value cost-to-close decisions when share price accelerates. Analysis of…
more -
81. Managing ITM Covered Call Strikes When Share Price Moves Higher
When stock price moves higher in the middle of a contract leaving the short call deep in-the-money, we ask ourselves if an exit strategy opportunity is available. Rolling the option out or closing the entire position at a profit are considerations analyzed in this podcast. A real-life example…
more -
80. Using the VIX to Achieve Higher Option-Selling Returns
Market volatility results in higher option premiums for option-sellers but also represents enhanced risk. This podcast analyzes ways to manage high and low VIX stats using a real-life example with Boyd gaming (BYD). Strike selection, stock selection and initial time-valure return goal range are...
-
79. Adjusting Target Goals with ETFs
Exchange-traded funds represent baskets of stocks. They are generally less volatile than individual stocks and therefore provide lower option premiums. When defining our initial time-value return goal range, we must factor this in so as to properly manage our portfolio results. A real-life…
more -
78. REITS: Good Covered Call Writing Candidates?
option-sellers may be attracted to the high dividend yield of real estate investment trusts (REITs).This podcast addresses portfolio diversification, dividend yield, implied volatility and calculations while using PennyMac Mortgage Investment Trust (PMC) as a real-life example. BECOME A BCI…
more -
77. Buyers Have Rights and Sellers Have Obligations- Covered Call Writing Explained
This podcast analyzes covered call writing from the perspectives of both buyers and sellers. The personal risk-tolerance of the investor will play a major role in determining how our option trades are structured. A real-life example with CarMax, Inc. (KMX) is highlighted with associared...
-
76. 5 Top Myths and Misunderstandings about Covered Call Writing
This podcast will debunk 5 of the most common myths associated with covered call writing. Option exercise, stock selection and earnings reports will be part of the presentation. BECOME A BCI MEMBER TODAY: https://www.thebluecollarinvestor.com/membership/ SEE BCI COURSE & PRODUCTS :...
About this show
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.Website: https://thebluecollarinvestor.com
Hosted by
Alan Ellman
Categories