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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...

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Ask 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...

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Calculating 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...

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Ask 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 @...

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Calculating 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...

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Rolling 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...

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Ask 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...

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Emergency 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...

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Closing 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....

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Covered 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...

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Ask 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...

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When 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...

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Ask 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...

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Clik here to view.

Rolling 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 Article

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Clik here to view.

Evaluating 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....

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Calculating 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 Article

Image may be NSFW.
Clik here to view.

Rolling 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 Article


Image may be NSFW.
Clik here to view.

Delta 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...

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Covered 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...

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Ask 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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