Ask Alan – Brokerage Statement Accounting Issues
Alan answers a question shared by Dave, who asks: “Here are two screenshots from my 1st virtual trade and hopefully not my last based on what you may tell me. I purchased LVS @ $77.03 per share and...
View ArticleAsk Alan – Should I Sell My Stock When The Price Goes Down?
Alan answers a question shared by Dave, who asks: “I’ve been virtual trading on the CBOE site as you suggested. Of my first 3 trades I have one losing position and want to know if I should sell the...
View ArticleCalculating 2-Month Returns When Rolling Out And Up
Options calculations will give us an accurate assessment of our covered call writing profits. It’s more meaningful to use percentages rather than dollar amounts when executing these calculations. For...
View ArticleAsk Alan #101 – Managing a Risky Trade
Alan answers a question shared by Ty, who asks: “I flat out gamble on one trade in my portfolio, and this is my gamble stock: (1) On 6/30/14 I bought GWPH at $103.90 and sold the 8/16 $105 call @...
View ArticleCalculating Future Returns Using Delta
Understanding option calculations is an integral part of the BCI methodology. Using the Ellman Calculators (Basic and Elite versions) will facilitate the process but knowing the “how” and “why” of...
View ArticleRolling Down And Stock Splits: A Real Life Example
Covered call writing positions can be altered by exit strategies or contract adjustments. Contract adjustments are alterations that are typically made to option contracts when the underlying stock...
View ArticleAsk Alan #104 – When Should I Close My Position Early If Stock Price Moves Up?
Alan answers a question shared by John, who asks: “I had the opportunity to utilize your premium report for the first time last Monday (8/18). I purchased 100 shares of CAVM and sold one option on...
View ArticleEmergency Management Report: Dealing with Volatile and Bearish Markets
With the stock market declining over 5% in the past month as a result of geo-political and global concerns exacerbated by the fears of an Ebola epidemic we find ourselves in a position that may lead to...
View ArticleClosing Our Entire Covered Call Position When Share Price Rises: The...
Exit strategies or position management is one of the three major components of this strategy we must master to become elite covered call writers. The other two are stock (or ETF) and option selection....
View ArticleCovered Call Writing With Protective Puts: A Proposed Strategy
When protective puts are integrated into our covered call writing strategy it is known as the collar strategy. The covered call aspect of the trade generates cash flow and the protective put leg serves...
View ArticleAsk Alan #107 – How To Use The 20%/10% Guidelines
Alan answers a question requested by several new members, who ask: “Can you produce a video explaining the 20%/10% guidelines?” If you want more “Ask Alan” videos, you can view the archive. More...
View ArticleWhen Do We Sell Our Covered Call Writing Stocks?
Covered call writers know how important exit strategies are to our ultimate success. Position management skills must be activated when share price rises or falls dramatically and when dividends become...
View ArticleAsk Alan #107 – How To Use The 20%/10% Guidelines
Alan answers a question requested by several new members, who ask: “Can you produce a video explaining the 20%/10% guidelines?” If you want more “Ask Alan” videos, you can view the archive. More...
View ArticleRolling Down And Stock Splits: A Real Life Example
Covered call writing positions can be altered by exit strategies or contract adjustments. Contract adjustments are alterations that are typically made to option contracts when the underlying stock...
View ArticleEvaluating Returns When Rolling Out And Up
Covered call writing and put-selling calculations must be accurate and preferably understood by option-sellers. I created the Ellman Calculators to facilitate the authentic computations we depend on....
View ArticleCalculating Future Returns Using Delta
Understanding option calculations is an integral part of the BCI methodology. Using the Ellman Calculators (Basic and Elite versions) will facilitate the process but knowing the “how” and “why” of...
View ArticleRolling Down And Stock Splits: A Real Life Example
Covered call writing positions can be altered by exit strategies or contract adjustments. Contract adjustments are alterations that are typically made to option contracts when the underlying stock...
View ArticleDelta And The Moneyness of Options
Understanding and mastering the Greeks are key factors in becoming an elite covered call writer and put-seller. In this article, I will focus on delta, one of the important Greeks, as it relates to the...
View ArticleCovered Call Writing And Dividend Capture: Evaluating A Proposed Strategy
Capturing dividends using covered call writing has been a topic on great interest lately. I recently wrote an extensive white paper on this topic located in the “resources/downloads” section of your...
View ArticleAsk Alan #110 – Should I Buy Back My Option Months Prior To Expiration?
Alan answers a question posed by Shelley, who asks: “On January 6th I sold a July $52.50 call option for $2.90 on WFC, a stock already in my account. Now the premium is $3.60 as share price moved up...
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