Here is the options chain:. All the information fed into this spreadsheet was gleaned from the options chain. The results appear in the white cells on the right side of the page:. This video explains the expanded and enhanced version of our Weekly Stock Screen and Watch List:. The major player in the current market remains the European debt crisis. Signs of tentative progress on Options in Greece and Italy seemed to allay investor fears for the time being. There is no change in our position of being cautiously bullish, fully invested and favoring in-the-money strikes. Posted on November 12, by Alan Ellman in Covered Call Exit Strategies. To send us an email, contact us here. Subscribe to our e-mail newsletter or RSS feed to receive updates. Contact us by phone at Additionally you can also find us on any of the social networks below:. Thanks for another informative article. This would have generated the largest return. Would you wait until Rolling to roll forward. Does the extra time of the forward option generally compensate for the fact that I;m not rolling on Friday? There are other strikes to consider. I decided on the two that I thought would be most strategy in explaining the strategy. When we role out and up, we can do so to an in-the-money strike, an at-the-money strike or an out-of-the-money strike. This will depend on the relationship of the new strike price to the current market value. These always will generate the greatest intitial time values or ROOs. It will not take long and will go a long way to teaching the association between different strikes and when to select them. Yes, the extra time value spent on closing the original short position will be negated by the additinal time value generated from the new short position. This is a non-issue if you roll the option a day or two prior to expiration Friday. Have productive business trip. Today it is above Since there is an earnings coming out on the 22nd, is put any action I need to take if the strike is still in the money by Friday? This is one those of judgment calls only you can make. Strategy the 19th is the Friday before the earnings come out, you should remember that there is sometimes a runup in anticipation of a good earnings report. However, you should also remember that sometimes the market realizes the runup may have been overdone, and it starts it come down just before the earnings report. There is no easy answer. If you have a decent gain, it might be wise to protect it and get out a little early. The rolling adjacent to the watch list stock tickers represent the projected upcoming earnings report dates. Those dates that are bolded in red are the ones that have been confirmed on the earningswhispers. All of the stocks Rolling have that expire on Fri are no longer on the Passed all screens list. They are all in the money. Do I let them all go and buy new ones next Fri? Evaluating your current situation is a great exercise for all those who are honing their covered call skills. First, let me say that with ALL your strikes in-the-money, you must be doing something right! If it failed in the second from final screen confirming indicators: MACD and Stochastic oscillator these stocks can whipsaw back into the white cells next week. You can follow this during the week. This company options public in April of this year. It will then cost only commissions to close the short position, sell the stock and use the cash to generate a second income stream in the same month. The stock in this article RHT is at 53 today. If you rolled to the 48 strike could this also be a good candidate for the mid contract unwind exit strategy? You are now officially a true Blue Collar Investor! You are absolutely right that when a stock moves up significantly and quickly our first thoughts are to generate a second income stream in the SAME month with the SAME cash. For those members who have copies of my latest book check pages strategy review this strategy. Year-end pension funding is considered one of the reasons for an early boost to the market. How do I calculate the cash I would need if I traded my covered calls in my margin accounts? I just rolled my 70 option on TSCO. Good deal if market holds. Mail will not be published Required. You can use these tags: Notify me of followup comments via e-mail. You can also subscribe without commenting. Optionally add an image JPEG only. Site Disclosure Statement Glossary Sitemap Timeline. Members Log In About Us Glossary for Covered Call Writing Free Resources including Ellman Calculator Ask Alan Training Videos Free Training Videos Events Calendar Facebook FAQ. The Blue Collar Investor Learn how to invest by selling stock options. Covered Calls Beginners Corner — Cash-Secured Puts The Blue Hour The Blue Hour For Premium Members. Rolling Strategies On Or Near Expiration Friday. I rolling use a real-life example taken from our Weekly Stock Screen and Watch List. The figures you will see are based on the options chain after market close on November 10th, I will normally use the rolling strategies closer to expiration Friday but since these articles are published on weekends I will use earlier stats. This means that, as of the most recent report, RHT is still a candidate for our covered call consideration. It currently meets all of our fundamental, technical and common sense requirements. Here is RHT as it appears on our running list:. RHT on our Premium Running List. RHT- November Options Chain. RHT- December Options Chain. Ellman Calculator- Blue Cells. The downside protection of that 2. This means that our 2. About Alan Ellman Alan Ellman loves options trading so much he has written four top selling books options the topic of selling covered calls, options about put-selling and a sixth book about long-term investing. Alan is a national speaker for The Money Show, The Stock Traders Expo and the American Association of Individual Investors. He also writes financial strategy for both US and International publications along with his own award-winning blog. He is a retired dentist, a personal fitness trainer, successful real estate investor, but he is known mostly for his practical and successful stock option strategies. Connect With Us To send us an email, contact us here. Additionally you can also find us on any of the social networks put Alan, Thanks for another informative article. Paul 1You are right. Frank 2 strategy, Yes, the extra time value spent on closing the original short position will be negated by the additinal time value generated from the new short position. Alan, What is the date next to RHT in your first chart and why are some of those dates in red? So far its a 3. Ted 6 This is one those of judgment calls only you can make. Pat 5The dates adjacent to the watch list stock tickers represent the projected upcoming earnings report dates. Owen thanks for the explanation. Best, Barry and The BCI Team. ADS Put NKE NUAN and TIF Suggestions anyone — this is the hardest part. That should be next Monday not Fri. Frank, Evaluating your current situation is a great exercise for all those who are honing their covered call skills. Here are a few points to consider: You are currently in a great position with all strikes in-the-money. Alan, Will you always buy back an option if it trades at parity? Alan, The stock in this article RHT is at 53 today. Fred, You are now officially put true Blue Collar Investor! Patricia 19Stocks must meet certain exchange requiremnets to have options listed. Here are a few: Alan, How do I calculate the cash I would need if I traded my covered calls in my margin accounts? For your convenience, here is the link to login to the premium site: Check out this link: Subscribe Here - Have the latest blog articles sent to your inbox. Subscribe to this articles Comments via RSS Feed. Learn how to take a Screenshot so you can add it to your comment. Leave a Reply Click here to cancel reply. July 15, 8: Washington DC Chapter AAII- Summer Workshop. A Key Component to Successful Long-Term Investing May 20, The New Stock Options Algorithmic and High Speed Trading January 15, Options That Expire Weekly and Conventional Expiration Cycles September 26, Short Selling: Positives and Negatives January 30, The CBOEs Volatility Index VIX September 11, Penny Pilot Program October 29, MarioG Alan, Added missing image to my post Just MarioG Alan, Just noticed the following This week's 8-page report. Recommended Investing Links DR. Eric WIsh's Wishing Rolling Blog. Archives Archives Select Month June May April March February January December November October September August July June May April March February January December November October September August July June May April March February January December November October September August July June May April March February Put December November October September August July June May April March February January December November October September August July June May April March February January December November October July June May March January December October September August June January December November September August July June May April March February January December November October September August July June May April March January December About BCI The Blue Collar Investor was NOT a brilliant idea of mine…. I was a frustrated blue collar investor just like you.
You should be able to get a total body workout from them, which is hard to accomplish using just free weights at home.
Anna Hazare withdraws his hunger strike after the Government agrees to set up a 10 member committee which is.
I am even capable of being my own background and I know exactly how I want the music to go with the lyrics.
August 12, 2014: Panel denies Pavlov right to present public testimony on behalf of Thumb area residents.