Bas,

The most appropriate strikes for our defensive monthly cash-secured put trades can be identified by factoring in these 2 metrics:

1. What is our pre-stated initial time-value return goal range?
2. How much risk (of exercise) are we willing to incur?

Here’s an example:

Let’s say our monthly goal for initial time-value returns is 2% – 4%. We then check the option-chain and identify the strikes that will generate returns within this range. Use the BCI Trade Management Calculator (TMC) to “run the numbers”.

Each strike will have an associated delta (risk factor). Select the combination of delta and initial returns that align best with your personal risk tolerance.

Following this blueprint will allow us to identify the most suitable strikes and their associated deltas.

Alan

This week i was in a CSP set up with TER. I opened it up on tuesday for the friday ahead with a 0.25 Delta.

Due to some volatility the strike price went down the 3% rule so i closed it up with a loss. After that it recovered.

TER is on the list again and i do not have any chips in my portfolio anymore so i am looking to open a CSP on it again.

This time i consider going down (a lot) and let it run for about one month (i guess the weeklies are just to volatile for me and a bit hard to manage….)

If you are going into a CSP trade, what is the general Delta you start with? I am considering to lower it down to about 0.15 or 0.20 and let the trade run for about a month…

What are your thoughts on this?

Greetings from sunny NL Bas

This week’s Weekly Stock Screen and Watch List has been uploaded to The Blue Collar Investor Premium Member site and is available for download in the “Reports” section. Look for the report dated 05/22/26.

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Barry and The Blue Collar Investor Team

1. This week’s ETF Report has been uploaded to your member site. Login to the member site and scroll down on the left side to access the report.

ETF Report Video Link:

Explanation of the report format:

https://youtu.be/addf7Y54ixwput

2. I’ve attached to premium member emails a 2-contract, 32-day aggressive covered call trade, with TTMI, an elite-performing stock at the time of the trade. I executed this trade on 5/18/2026, for the 6/18/2026 expiration. TTMI closed at $169.36 today, up $10.13 from trade entry. The current price is $20.37 above breakeven with 31/2 weeks remaining until expiration. As always, I remain prepared to execute exit strategies, if those opportunities arise. Off to a good start, but a long way to go.

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4. New Quasar markets interview:

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Wishing you the best results,

Alan & the BCI team

This week’s Weekly Stock Screen and Watch List has been uploaded to The Blue Collar Investor Premium Member site and is available for download in the “Reports” section. Look for the report dated 05/15/26.

Be sure to check out the latest BCI Training Videos and “Ask Alan” segments. You can view them on The Blue Collar YouTube Channel. For your convenience, the link to the BCI YouTube Channel is:

https://www.youtube.com/user/BlueCollarInvestor

Barry and The Blue Collar Investor Team

Bas,

Rolling-down is one of our exit strategy choices to avoid exercise, as is simply closing the option position.

Now, rolling-down will result in an option debit, so the question is; do we want to remain in a position that has turned against us?

By closing, we limit our losses and use the cash to enter a new position and start the mitigation process.

Rolling down will decrease the chance of exercise and cost less than closing alone, but it will work against us if share price continues to decline in value.

Alan

I am wondering: Why not roll the strike down to the 125 put in the June expiration?

Or just let assignment happen and wait for the stock to recover a bit?

What are your thoughts on this? If the stock drops below the 3% and i need to buy it back there is a realized loss?

Kind regards and it’s so great how you help out with your answers:).

Bas