Dr. Ellman is president of The Blue Collar Investor Corp., and author of bestselling books on covered call writing and selling puts. His 4th book, Stock Investing for Students, is now required reading at several colleges. He has also produced several video courses and published hundreds of articles and videos on this subject. Alan has been a frequent guest on financial forums such as the Options Industry Council's Wide World of Options and The Money Answers Radio program. He is also a national speaker for The Money Show, the Options Industry Council and the American Association of Individual Investors. Alan has also completed the Series 65-Investment Advisor Rep requirements.
Exit strategies can dramatically enhance our covered call writing returns, says Alan Ellman of The Blue Collar Investor.
When we roll out a cash-secured put trade, we are spanning two contract cycles, says Alan Ellman of The Blue Collar Investor.
Rolling-down is one of our frequently used covered call writing exit strategies, states Alan Ellman of The Blue Collar Investor.
In this session, Alan will use a real-life example with a $100k ETF Select Sector SPDR portfolio. Covered call writing is a low-risk option-selling strategy that generates weekly or monthly cash flow. This presentation will demonstrate how to implement this strategy using a database of only 11 exchange-traded funds for a one-month option contract cycle. These are real-life trades taken directly from one of Dr. Ellman's portfolios with screenshots verifying each trade. A final monthly contract result compared to the performance of the S&P 500 will be calculated.
How to establish a covered call writing portfolio What is the role of diversification? What is the role of cash allocation? Calculating initial returns Analyzing each trade in the monthly contract Final results and next steps BCI Package: Our Best and most Comprehensive Investment package
Topics included in this webinar:
Creating 84% probability successful trades for covered call writing and selling cash-secured puts. This presentation will detail how to use implied volatility stats, standard deviation bell curves and conversion formulas to establish projected high and low ranges for price movement of a security over the life of an option contract. These formulas will allow us to create 84% probability of success trades where share price is highly unlikely to fall below the breakeven price point or above the out-of-the-money call strike where share retention is a critical aspect of our strategy. While there is inherent risk in all strategies that seek to beat risk-free returns (Treasuries, for example), the strategies discussed in this webinar will be ultra-low-risk and appropriate for most retail investors.
Selling stock options is a proven way to lower our cost-basis and beat the market on a consistent basis. Two such low-risk strategies are covered call writing and selling cash-secured puts. This presentation will detail how to incorporate both strategies into one multi-tiered option-selling strategy, where we either generate cash-flow or buy a stock at a discount. I refer to this as the Put-Call-Put (PCP) Strategy, also referred to as the wheel strategy.
Converting Non-Dividend Stocks into Dividend Stocks: Selling Call Options to Create Dividend-Like Cash Flow
Retail investors love dividend-bearing stocks because they generate an additional income stream along with potential share appreciation. As a result, stock screening may be restricted by requiring the securities to only include dividend-bearing stocks. How many great stocks are eliminated because of this one requirement? This presentation will detail how we can use non-dividend stocks and create our own dividend-like cash flow by selling call options. The technique is better than actual dividends because share price will not decline by the dividend amount on the ex-date as do typical dividend stocks. The basics of options will initiate the seminar followed by specifics and real-life examples as to how to implement option-selling to create a dividend-like cash flow with non-dividend bearing stocks.
Selling Cash-Secured Puts: Investing to Generate Monthly Cash Flow
Using stocks and stock options to develop a low-risk, wealth-building strategy for retail investors. Selling puts is a strategy similar to, but not precisely the same as, covered call writing. Mastering either strategy is a huge opportunity for retail investors to secure our financial futures. Mastering both will allow us focus in on the best investment choices depending on market conditions and personal risk tolerance