Quantcast
Channel: Exit Strategies | The Blue Collar Investor
Browsing index pages (277 articles)

Image may be NSFW.
Clik here to view.

The PCP (put-call-put or “wheel”) Strategy with Solaris Energy

click ↑ 4 Featured Combining covered call writing and selling cash-secured puts into one multi-tiered option-selling strategy is known as the Put-Call-Put (PCP) or “Wheel” strategy. In this article, a...

View Article


Image may be NSFW.
Clik here to view.

Rolling-Up 4 Cash-Secured Put Contracts: Debunking an Option Myth

click ↑ 4 Featured It is not true that the maximum profit we can generate with a cash-secured put trade is the original put premium. Blue Collar Investors have an arsenal of exit strategies that allow...

View Article


Image may be NSFW.
Clik here to view.

Managing Multiple Put Trades with Multiple Expirations Using the Trade...

click ↑ 4 Featured Calculating initial returns for our covered call writing & cash-secured put trades is intuitive and straightforward. For puts, we divide the premium by the difference between...

View Article

Image may be NSFW.
Clik here to view.

Shorter-Dated Options Generate the Highest Annualized Returns

click ↑ 4 Featured When selling cash-secured puts (or covered calls), large dollar premiums are enticing. Is a $17.00 premium better than an $11.00 premium? How about is a $20.00 premium better than...

View Article

Image may be NSFW.
Clik here to view.

Stock Entry Price on Monday After a Covered Call Expired Worthless on Friday

click ↑ 4 Featured We write an out-of-the-money (OTM) covered call and share price moves up but does not breach the OTM strike by expiration Friday, so the option expires worthless. What price do we...

View Article


Image may be NSFW.
Clik here to view.

Using the Capital Adjustment Section of Our Trade Management Calculator (TMC)...

click ↑ 4 Featured When we execute multiple exit strategies in the same contract cycle using the same cash investment, the TMC will provide us with accurate individual trade calculations. But, what...

View Article

Image may be NSFW.
Clik here to view.

How to Calculate and Archive Results for a Rolling-Out-And-Up Covered Call Trade

click ↑ 4 Featured When a covered call trade is expiring in-the-money (ITM), we may have an opportunity to retain the underlying shares by rolling-out or rolling-out-and-up. The latter is a more...

View Article

Image may be NSFW.
Clik here to view.

Strike Selection After Rolling-Out Our Portfolio Overwriting Trades

click ↑ 4 Featured Portfolio overwriting is a covered call writing-like trading strategy. There are 2 distinctly defined goals: generating cash flow + retention underlying shares. Since deep...

View Article


Image may be NSFW.
Clik here to view.

Calculating Multiple Call & Put Trades with the Same Stock in 2 Expiration...

click ↑ 4 Featured Calculating our covered call writing and cash-secured put trades can range anywhere from really simple to way too complicated. In this article, an example of the latter will be...

View Article


Image may be NSFW.
Clik here to view.

Can We Generate Significant Returns with a Defensive 4-Day Cash-Secured Put...

click ↑ 4 Featured In bear and volatile markets, our cash-secured put trades (covered calls too) should be structured in a defensive manner. Greater protection to the downside typically means lower...

View Article

Image may be NSFW.
Clik here to view.

Using Bitcoin to Create a Low-Risk, High Initial Return Cash-Secured Put Trade

click ↑ 4 Featured The most well-known form of cryptocurrency is Bitcoin. I am frequently asked about the use of crypto with our covered call and cash-secured put trades. In this article, a 1-week...

View Article

Image may be NSFW.
Clik here to view.

In 54-Days, My Stock Was Up $0.71/Share, but I Made $7.66/Share with Options

click ↑ 4 Featured Selling covered calls and cash-secured puts lower our cost-basis and places us in a position to significantly beat the market. Mastering stock selection, option selection and...

View Article

Image may be NSFW.
Clik here to view.

What is Covered Call Writing Time-Value Cost-To-Close?

click ↑ 4 Featured The success of our covered call writing trades is, to a great extent, dependent on our position management skill set. One of the strategies in our exit strategy arsenal is the...

View Article


Image may be NSFW.
Clik here to view.

How to Improve Results for a Rolling-Down Covered Call Trade

click ↑ 4 Featured Rolling down is a frequently used covered call writing exit strategy to mitigate when share price declines. The original sold option is closed (bought back), while simultaneously...

View Article

Image may be NSFW.
Clik here to view.

The Inverse Relationship Between Stock Price and Put Premium + Sample Trade...

click ↑ 4 Featured When selling our cash-secured puts, understanding the correlation between stock price and our put premiums is critical to maximizing the success of our trades. For covered call...

View Article


Image may be NSFW.
Clik here to view.

Setting Up a Covered Call Trade: Step-by-Step Process + New Trade Video

click ↑ 4 Featured Establishing our covered call trades require a sequential process including stock selection, option selection and position management. This article will analyze the procedures using...

View Article

Image may be NSFW.
Clik here to view.

Rolling-Out Our Covered Call Trades After Rolling-Down

click ↑ 4 Featured Market volatility can cause our covered call trades to whipsaw up and down, much like a roller-coaster. In this article, a real-life trade with The Industrial Select Sector SPDR Fund...

View Article


Image may be NSFW.
Clik here to view.

Rolling-Up Twice and Closing a Mixed Cash-Secured Put Trade

click ↑ 4 Featured Exit strategies for covered call writing and selling cash-secured puts are critical in achieving the highest level of our trading returns. In this article, a real-life example with...

View Article

Image may be NSFW.
Clik here to view.

Calculating Covered Call Trades that are Converted to Collar Trades

click ↑ 4 Featured What is a Collar Trade? The collar strategy consists of 3 legs: Buy stock (long position) Sell an out-of-the-money (OTM) call option (short call- ceiling) Buy an out-of-the-money...

View Article

Image may be NSFW.
Clik here to view.

Doubling Our Maximum Covered Call Returns Using the Mid-Contract Unwind (MCU)...

click ↑ 4 Featured Our covered call writing trades offer 2 income streams when using out-of-the-money (OTM) call strikes. (Make that 3, if we incorporate dividends into the strategy). These consist of...

View Article
Browsing index pages (277 articles)


Latest Images