<?xml version="1.0" encoding="UTF-8"?><rss version="2.0"
	xmlns:content="http://purl.org/rss/1.0/modules/content/"
	xmlns:wfw="http://wellformedweb.org/CommentAPI/"
	xmlns:dc="http://purl.org/dc/elements/1.1/"
	xmlns:atom="http://www.w3.org/2005/Atom"
	xmlns:sy="http://purl.org/rss/1.0/modules/syndication/"
	xmlns:slash="http://purl.org/rss/1.0/modules/slash/"
	>

<channel>
	<title>The Blue Collar Investor </title>
	<atom:link href="https://www.thebluecollarinvestor.com/feed/" rel="self" type="application/rss+xml" />
	<link>https://www.thebluecollarinvestor.com</link>
	<description>Learn how to invest by selling stock options.</description>
	<lastBuildDate>Sat, 11 Jul 2026 11:03:45 +0000</lastBuildDate>
	<language>en-US</language>
	<sy:updatePeriod>
	hourly	</sy:updatePeriod>
	<sy:updateFrequency>
	1	</sy:updateFrequency>
	
	<item>
		<title>Rolling-Up 4 Cash-Secured Put Contracts: Debunking an Option Myth</title>
		<link>https://www.thebluecollarinvestor.com/rolling-up-4-cash-secured-put-contracts-debunking-an-option-myth/</link>
					<comments>https://www.thebluecollarinvestor.com/rolling-up-4-cash-secured-put-contracts-debunking-an-option-myth/#comments</comments>
		
		<dc:creator><![CDATA[Alan Ellman]]></dc:creator>
		<pubDate>Sat, 11 Jul 2026 11:03:45 +0000</pubDate>
				<category><![CDATA[Exit Strategies]]></category>
		<category><![CDATA[Investment Basics]]></category>
		<category><![CDATA[Option Trading Basics]]></category>
		<category><![CDATA[Options Calculations]]></category>
		<category><![CDATA[Options Trade Execution]]></category>
		<category><![CDATA[Put-selling]]></category>
		<category><![CDATA[Stock Option Strategies]]></category>
		<guid isPermaLink="false">https://www.thebluecollarinvestor.com/?p=213589</guid>

					<description><![CDATA[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 [&#8230;]]]></description>
										<content:encoded><![CDATA[<div style="float: right; border: none; line-height: .5pt; margin-bottom: 23px; margin-left: 33px;"><a href="#Featured"><img loading="lazy" decoding="async" style="border: none;" src="https://www.thebluecollarinvestor.com/wp-content/uploads/2023/09/icon_bci-FEATURED-PRODUCTS-SERVICES-V3b_09-20-23.jpg" alt="" width="124" height="104" /></a><br />
<center><span style="color: #808080; font-size: 9pt;">click ↑ 4 <i>Featured</i></span></center></div>
<p><em>It is not true that the maximum profit we can generate with a cash-secured put trade is the original put premium</em>. Blue Collar Investors have an arsenal of <a href="https://thebluecollarinvestor.com/minimembership/softcover-exit-strategies-for-covered-call-writing-and-selling-cash-secured-puts/">exit strategies</a> that allow us, not only to mitigate losses, but also to enhance gains. In this article, 4 put contracts with 2 different strikes will be analyzed to demonstrate this assertion. All trades are taken directly from one of my brokerage accounts.</p>
<p>&nbsp;</p>
<p><strong>Real-life example with</strong> <strong>Solaris Energy Infrastructure Inc. (NYSE: SEI)</strong></p>
<ul>
<li>1/20/2026: SEI trading at $55.77</li>
<li>1/20/2026: STO 2 x 2/20/2026 $42.50 puts at $1.16</li>
<li>1/20/2026: STO 2 x 2/20/2026 $37.50 puts at $0.58</li>
<li>2/13/2026: SEI trading at $59.50</li>
<li>2/13/2026: BTC 2 x 2/20/2026 $42.50 puts at $0.35</li>
<li>2/13/2026: STO 2 x 2/20/2026 $52.50 puts at $0.95 (rolled up)</li>
<li>2/13/2026: BTC 2 x 2/20/2026 $37.50 puts at $0.08</li>
<li>2/13/2026: STO 2 x 2/20/2026 $50.00 puts at $0.50 (rolled up)</li>
</ul>
<p>&nbsp;</p>
<p><strong>Comparison chart of SEI with the S&amp;P 500 prior to and during the put trades</strong></p>
<p><img loading="lazy" decoding="async" class="alignnone size-full wp-image-213590" src="https://www.thebluecollarinvestor.com/wp-content/uploads/2026/02/SEI_Roll-up_Chart_SP500.jpg" alt="" width="1600" height="656" srcset="https://www.thebluecollarinvestor.com/wp-content/uploads/2026/02/SEI_Roll-up_Chart_SP500.jpg 1600w, https://www.thebluecollarinvestor.com/wp-content/uploads/2026/02/SEI_Roll-up_Chart_SP500-1280x525.jpg 1280w, https://www.thebluecollarinvestor.com/wp-content/uploads/2026/02/SEI_Roll-up_Chart_SP500-980x402.jpg 980w, https://www.thebluecollarinvestor.com/wp-content/uploads/2026/02/SEI_Roll-up_Chart_SP500-480x197.jpg 480w" sizes="(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) and (max-width: 1280px) 1280px, (min-width: 1281px) 1600px, 100vw" /></p>
<p>&nbsp;</p>
<p><strong>Initial calculations prior to rolling up: The <a href="https://thebluecollarinvestor.com/minimembership/bci-trade-management-system/"><em>BCI Trade Management Calculator (TMC)</em></a></strong></p>
<p><img loading="lazy" decoding="async" class="alignnone size-full wp-image-213591" src="https://www.thebluecollarinvestor.com/wp-content/uploads/2026/02/SEI_Initial_Put_Trade_Calculations.jpg" alt="" width="1106" height="507" srcset="https://www.thebluecollarinvestor.com/wp-content/uploads/2026/02/SEI_Initial_Put_Trade_Calculations.jpg 1106w, https://www.thebluecollarinvestor.com/wp-content/uploads/2026/02/SEI_Initial_Put_Trade_Calculations-980x449.jpg 980w, https://www.thebluecollarinvestor.com/wp-content/uploads/2026/02/SEI_Initial_Put_Trade_Calculations-480x220.jpg 480w" sizes="(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1106px, 100vw" /></p>
<p>Both puts offered significant initial returns (brown &amp; pink cells) as well as substantial protection to breakeven (purple &amp; blue cells). The initial cash generated, $348.00 (green circle), was guaranteed as long as SEI remained above the associated strike prices.</p>
<p>&nbsp;</p>
<p><strong>Brokerage confirmation of the roll up trades</strong></p>
<p><img loading="lazy" decoding="async" class="alignnone size-full wp-image-213592" src="https://www.thebluecollarinvestor.com/wp-content/uploads/2026/02/SEI_Roll-up_4_Contracts.jpg" alt="" width="1293" height="383" srcset="https://www.thebluecollarinvestor.com/wp-content/uploads/2026/02/SEI_Roll-up_4_Contracts.jpg 1293w, https://www.thebluecollarinvestor.com/wp-content/uploads/2026/02/SEI_Roll-up_4_Contracts-1280x379.jpg 1280w, https://www.thebluecollarinvestor.com/wp-content/uploads/2026/02/SEI_Roll-up_4_Contracts-980x290.jpg 980w, https://www.thebluecollarinvestor.com/wp-content/uploads/2026/02/SEI_Roll-up_4_Contracts-480x142.jpg 480w" sizes="(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) and (max-width: 1280px) 1280px, (min-width: 1281px) 1293px, 100vw" /></p>
<p>The additional cash generated by rolling up these 4 contracts was $204.00. The final outcome of these trades is yet to be determined at the time of this writing. Since Monday is a market-recognized holiday (Presidents Day), there are 4 1/2 trading days remaining until contract expirations and I remain vigilant to execute additional exit strategy opportunities, should they present.</p>
<p>&nbsp;</p>
<p><strong>Discussion</strong></p>
<p>There are at least 10 different exit strategies available to us when selling cash-secured puts. These can be implemented to mitigate losses as well as to enhance profits. This article is an example of the latter, which then debunks the myth that the maximum gain for <a href="https://thebluecollarinvestor.com/minimembership/selling-cash-secured-puts-basic-and-advanced-principles-6-part-video-series-workbook/">cash-secured put trades</a> is the original put premium only.</p>
<p><strong>Trade update</strong></p>
<p><em>SEI dipped below the $50.00 put strike at expiration and I allowed exercise. I, then, sold OTM covered calls on 400 shares and ended up with &gt;120% realized annualized return for the 2-months of option-selling.</em></p>
<p>&nbsp;</p>
<p><code><a id="Featured"></a></code></p>
<hr />
<div class="et_pb_module et_pb_text et_pb_text_0 et_pb_text_align_center et_pb_bg_layout_light"></div>
<div class="et_pb_module et_pb_text et_pb_text_1 et_pb_text_align_center et_pb_bg_layout_light">
<div class="et_pb_text_inner">
<div class="et_pb_module et_pb_text et_pb_text_0 et_pb_text_align_center et_pb_bg_layout_light">
<div class="et_pb_text_inner"><strong>BCI Trade Management System: </strong><strong>Calculator, User Guide &amp; Exit Strategy Book Package</strong></div>
</div>
</div>
</div>
<div></div>
<div></div>
<p><img loading="lazy" decoding="async" class="alignnone size-full wp-image-213870" src="https://www.thebluecollarinvestor.com/wp-content/uploads/2026/07/TMC_Numbered.jpg" alt="" width="1029" height="522" srcset="https://www.thebluecollarinvestor.com/wp-content/uploads/2026/07/TMC_Numbered.jpg 1029w, https://www.thebluecollarinvestor.com/wp-content/uploads/2026/07/TMC_Numbered-980x497.jpg 980w, https://www.thebluecollarinvestor.com/wp-content/uploads/2026/07/TMC_Numbered-480x243.jpg 480w" sizes="(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1029px, 100vw" /></p>
<p>This is a unique tool that is used to manage covered call writing and selling cash-secured put trades from start-to-finish. To our knowledge, it’s the only one of its kind anywhere.</p>
<p>Both covered call writing and put-selling sections have a capital adjustment area to ensure the portfolio percent return accuracy when multiple exit strategies are executed in the same contract cycle with the same cash investment.</p>
<p><strong><a href="https://thebluecollarinvestor.com/minimembership/bci-trade-management-system/">Learn more here.</a></strong></p>
<p>&nbsp;</p>
<hr />
<p><strong>Your generous testimonials</strong></p>
<p><em>Over the years, the BCI community has been incredibly gracious by sending our BCI team email testimonials sharing stories as to what our educational content has meant to their families. Moving forward, we have decided to publish several of these testimonials in our blog articles. We will never use a last name unless given permission:</em></p>
<p>Hi Alan,</p>
<p>I’m now 11 months into my journey of trading covered calls.  I’m doing 99% weekly options and have been very pleased with my results.  Still learning each and every week and getting better at making a little extra each week using exit strategies.</p>
<p>Thank you.</p>
<p>Andrew</p>
<p>&nbsp;</p>
<div dir="auto" data-olk-copy-source="MessageBody">
<div data-olk-copy-source="MessageBody">
<div class="x_elementToProof" data-olk-copy-source="MessageBody">
<div class="x_elementToProof" data-olk-copy-source="MessageBody">
<div dir="ltr" data-setdir="false" data-olk-copy-source="MessageBody">
<div dir="auto" data-olk-copy-source="MessageBody">
<div class="x_elementToProof" data-olk-copy-source="MessageBody">
<div class="x_elementToProof" data-olk-copy-source="MessageBody">
<div dir="ltr" data-setdir="false" data-olk-copy-source="MessageBody">
<div dir="auto" data-olk-copy-source="MessageBody">
<div dir="auto" data-olk-copy-source="MessageBody">
<div dir="auto">
<div dir="auto">
<p><b><i>New Quasar Markets interview</i></b></p>
<p><a href="https://x.com/QuasarMarkets/status/2074524502114070602"><b>C</b><b>lic</b><b>k h</b><b>ere.</b></a></p>
</div>
<div dir="auto"></div>
</div>
</div>
</div>
</div>
</div>
</div>
<div>_____________________________________________________________________</div>
<div></div>
<div><strong>Upcoming events</strong></div>
</div>
</div>
</div>
</div>
</div>
</div>
<div></div>
<p><strong>1. MoneyShow Masters Symposium Las Vegas</strong></p>
<p>Tuesday July 21, 2026</p>
<p>Caesars Palace Hotel, Las Vegas</p>
<p><strong>Title</strong><strong>: The Put-Call-Put (PCP) or Wheel Strategy</strong></p>
<p><strong>Subtitle</strong><strong>: </strong><strong>Generating cash flow &amp; buying shares at a discount using covered call writing and cash-secured puts</strong><strong> </strong></p>
<p><strong>Description</strong><strong>:</strong></p>
<p>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 <em>covered call writing</em> and <em>selling cash-secured puts</em>. This presentation will detail how to incorporate both strategies into one multi-tiered option-selling strategy where we either generate cash-flow or buy stock at a discount. I refer to this as the <em>Put-Call-Put (PCP) Strategy</em>, also referred to as the<em> wheel strategy</em>.</p>
<p>The basics and pros and cons are discussed as well as a real-life example and introduction into the BCI Trade Management Calculator (TMC). This seminar is appropriate for those who look to generate modest, but repeatable, returns which will enable us to beat the market on a consistent basis while focusing on capital preservation.</p>
<p><a href="https://lasvegasmms.com/registration/?scode=067456"><strong> Register here.</strong></a></p>
<p><strong>2. Mad Hedge Investor Summit</strong></p>
<p>Wednesday September 16, 2026</p>
<p>12 PM ET – 1 PM ET</p>
<p><strong>The Collar Strategy: Covered Call Writing with Protective Puts</strong></p>
<p><em>Protecting covered call trades from catastrophic share loss</em><em> </em></p>
<p>Protect our covered call trades by purchasing protective puts. This results in lower risk transactions, with lower, but still significant option returns. This is the strategy Bernie Madoff pretended to use. He called it the <em>split strike conversion strategy</em>, but it was simply a <em>collar</em>. The covered call sets a max gain and the protective put guarantees a maximum loss.</p>
<p><strong><u>Topics discussed</u></strong></p>
<ul>
<li><em>What is the collar strategy?</em></li>
<li><em>Uses for the collar</em></li>
<li><em>Entering a collar trade</em></li>
<li><em>Option basics for calls</em></li>
<li><em>Option basics for puts</em></li>
<li><em>Real-life example with NVDA</em></li>
<li><em>What is an option-chain?</em></li>
<li><em>Real-life example using the BCI Trade Management Calculator (TMC)</em></li>
<li><em>Strategy pros &amp; cons</em></li>
<li><em>Event offer</em></li>
<li><em>Q&amp;A</em></li>
</ul>
<p>Registration link to follow.</p>
<p><strong>3. Toronto Money Show</strong></p>
<p>September 24 – 25, 2026</p>
<p>MaRS Center, Toronto Canada</p>
<p><strong>4. Orlando Money Show</strong></p>
<p>October 5 – 7, 2026</p>
<p>Hilton Orlando Lake Buena Vista</p>
<p>Details to follow.</p>
<p><strong>5. American Association of Individual Investors: NYC Chapter</strong></p>
<p>Date and time to be confirmed.</p>
<p><strong>6. Triple Edge Investing Summit: <em>Technical Analysis • Options Strategies • ETF Mastery</em></strong></p>
<p>Saturday January 23, 2027- All-day event</p>
<p>Zoom presentation</p>
<p>All-day paid event</p>
<p>All-day event hosted by 3 experts:</p>
<ul>
<li>Dr. Alan Ellman (options)</li>
<li>Dr. Eric Wish (technical analysis)</li>
<li>Les Masonson (ETFs)</li>
</ul>
<p>Hosted by <em>TraderLion University</em></p>
<p>Details to follow.</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<figure class="wp-block-image"><img loading="lazy" decoding="async" class="aligncenter size-large wp-image-212545" src="https://www.thebluecollarinvestor.com/wp-content/uploads/2024/11/ALL_Stars_Panel_Las_Vegas_2024-620x464.jpg" sizes="auto, (min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) 620px, 100vw" srcset="https://www.thebluecollarinvestor.com/wp-content/uploads/2024/11/ALL_Stars_Panel_Las_Vegas_2024-620x464.jpg 620w, https://www.thebluecollarinvestor.com/wp-content/uploads/2024/11/ALL_Stars_Panel_Las_Vegas_2024-480x359.jpg 480w" alt="" width="620" height="464" /><figcaption class="wp-element-caption">Alan speaking at <em>The All Stars of Options</em> event in Las Vegas</figcaption></figure>
]]></content:encoded>
					
					<wfw:commentRss>https://www.thebluecollarinvestor.com/rolling-up-4-cash-secured-put-contracts-debunking-an-option-myth/feed/</wfw:commentRss>
			<slash:comments>1</slash:comments>
		
		
			</item>
		<item>
		<title>Ask Alan #244: Why Buy Back an Option for a Loss?</title>
		<link>https://www.thebluecollarinvestor.com/ask-alan-244-why-buy-back-an-option-for-a-loss/</link>
					<comments>https://www.thebluecollarinvestor.com/ask-alan-244-why-buy-back-an-option-for-a-loss/#respond</comments>
		
		<dc:creator><![CDATA[Alan Ellman]]></dc:creator>
		<pubDate>Wed, 08 Jul 2026 09:55:02 +0000</pubDate>
				<category><![CDATA[Ask Alan]]></category>
		<category><![CDATA[ask Alan]]></category>
		<category><![CDATA[BCI]]></category>
		<category><![CDATA[buy back options]]></category>
		<category><![CDATA[Covered Calls]]></category>
		<category><![CDATA[delta]]></category>
		<category><![CDATA[exercise risk]]></category>
		<category><![CDATA[expected price movement]]></category>
		<category><![CDATA[Expiration friday]]></category>
		<category><![CDATA[implied volatility]]></category>
		<category><![CDATA[IV]]></category>
		<category><![CDATA[low delta options]]></category>
		<category><![CDATA[NVDA options]]></category>
		<category><![CDATA[Nvidia covered calls]]></category>
		<category><![CDATA[option Greeks]]></category>
		<category><![CDATA[option premium]]></category>
		<category><![CDATA[options trading education]]></category>
		<category><![CDATA[out-of-the-money calls]]></category>
		<category><![CDATA[portfolio income]]></category>
		<category><![CDATA[Portfolio Overwriting]]></category>
		<category><![CDATA[risk tolerance]]></category>
		<category><![CDATA[standard deviation]]></category>
		<category><![CDATA[strike selection]]></category>
		<category><![CDATA[The Blue Collar Investor]]></category>
		<category><![CDATA[theta]]></category>
		<category><![CDATA[time value erosion]]></category>
		<category><![CDATA[trade management calculator]]></category>
		<category><![CDATA[vega]]></category>
		<guid isPermaLink="false">https://www.thebluecollarinvestor.com/?p=213873</guid>

					<description><![CDATA[﻿﻿ Alan, Using your covered call video example, the ITM premium is $8.05, but that is made up of $7.30 of intrinsic value and $0.75 of time value. So, if [&#8230;]]]></description>
										<content:encoded><![CDATA[<p><iframe loading="lazy" title="YouTube video player" src="https://www.youtube.com/embed/LtPVOHEGKqs" width="560" height="315" frameborder="0" allowfullscreen="allowfullscreen"><span style="display: inline-block; width: 0px; overflow: hidden; line-height: 0;" data-mce-type="bookmark" class="mce_SELRES_start">﻿</span><span style="display: inline-block; width: 0px; overflow: hidden; line-height: 0;" data-mce-type="bookmark" class="mce_SELRES_start">﻿</span></iframe></p>
<hr />
<p>Alan,</p>
<p>Using your covered call video example, the ITM premium is $8.05, but that is made up of $7.30 of intrinsic value and $0.75 of time value. So, if we buy back the option when its price falls to $1.60 (20% BTC) that $1.60 consists of all time value or upside in the transaction ($0.75) and the remaining $0.85 in intrinsic value. So, if we&#8217;re trading 5 contracts, we lock in a $425 loss (500 shares X $0.85).</p>
<p>Do I have this right or is there something I&#8217;m not seeing? If my understanding is correct, are you accepting a $425 loss because it is superior to possibly incurring a larger loss later?</p>
<p>Thanks,</p>
<p>John</p>
<p>&nbsp;</p>
<p><b>Free Resources:</b><br />
<a href="https://thebluecollarinvestor.com/minimembership/bci-free-resources/">https://thebluecollarinvestor.com/minimembership/bci-free-resources/</a></p>
<p><b>Premium Membership:</b><br />
⁠<a href="https://thebluecollarinvestor.com/minimembership/premium-membership/">https://thebluecollarinvestor.com/minimembership/premium-membership/</a></p>
<p><b>Best Discounted Packages:</b></p>
<p style="padding-left: 40px;">1. BCI Package, our Best and most Comprehensive Investment package:<br />
⁠<a href="https://thebluecollarinvestor.com/minimembership/bci-investor-program/">https://thebluecollarinvestor.com/minimembership/bci-investor-program/</a></p>
<p style="padding-left: 40px;">2. TCM Package &#8211; BCI Trade Management System:<br />
⁠<a href="https://thebluecollarinvestor.com/minimembership/bci-trade-management-system/">https://thebluecollarinvestor.com/minimembership/bci-trade-management-system/</a></p>
<p style="padding-left: 40px;">3. CEO Package &#8211; Includes TMC Package:<br />
⁠<a href="https://thebluecollarinvestor.com/minimembership/ceo-package/">https://thebluecollarinvestor.com/minimembership/ceo-package/</a></p>
<p style="padding-left: 40px;">4. Credit Spread Management System<br />
<a href="https://www.thebluecollarinvestor.com/the-bci-credit-spread-management-system/">https://www.thebluecollarinvestor.com/the-bci-credit-spread-management-system/</a></p>
<hr />
<p>More Videos:</p>
<ul>
<li><a href="/beginners-corner/">For those new to Alan&#8217;s system of Covered Call Writing, be sure to take the Free Beginners Corner Series</a></li>
<li><a href="/free-training/">Free Training Videos Archive</a></li>
<li><a href="/category/ask-alan/">Ask Alan Video Q &amp; A Archive</a></li>
<li><a href="http://www.youtube.com/user/BlueCollarInvestor">Subscribe to our YouTube Channel</a></li>
</ul>
<hr />
<p>To enter your questions to &#8220;Ask Alan&#8221;, fill out the form on the <a href="/contact/">contact page</a>. Be sure to begin your message with &#8220;ASK ALAN&#8221;</p>
]]></content:encoded>
					
					<wfw:commentRss>https://www.thebluecollarinvestor.com/ask-alan-244-why-buy-back-an-option-for-a-loss/feed/</wfw:commentRss>
			<slash:comments>0</slash:comments>
		
		
			</item>
		<item>
		<title>Managing Multiple Put Trades with Multiple Expirations Using the Trade Management Calculator</title>
		<link>https://www.thebluecollarinvestor.com/managing-multiple-put-trades-with-multiple-expirations-using-the-trade-management-calculator/</link>
					<comments>https://www.thebluecollarinvestor.com/managing-multiple-put-trades-with-multiple-expirations-using-the-trade-management-calculator/#comments</comments>
		
		<dc:creator><![CDATA[Alan Ellman]]></dc:creator>
		<pubDate>Sat, 04 Jul 2026 10:54:49 +0000</pubDate>
				<category><![CDATA[Exit Strategies]]></category>
		<category><![CDATA[Investment Basics]]></category>
		<category><![CDATA[Option Trading Basics]]></category>
		<category><![CDATA[Options Calculations]]></category>
		<category><![CDATA[Options Trade Execution]]></category>
		<category><![CDATA[Put-selling]]></category>
		<category><![CDATA[Stock Option Strategies]]></category>
		<guid isPermaLink="false">https://www.thebluecollarinvestor.com/?p=213580</guid>

					<description><![CDATA[click ↑ 4 Featured Calculating initial returns for our covered call writing &#38; cash-secured put trades is intuitive and straightforward. For puts, we divide the premium by the difference between [&#8230;]]]></description>
										<content:encoded><![CDATA[<div style="float: right; border: none; line-height: .5pt; margin-bottom: 23px; margin-left: 33px;"><a href="#Featured"><img loading="lazy" decoding="async" style="border: none;" src="https://www.thebluecollarinvestor.com/wp-content/uploads/2023/09/icon_bci-FEATURED-PRODUCTS-SERVICES-V3b_09-20-23.jpg" alt="" width="124" height="104" /></a><br />
<center><span style="color: #808080; font-size: 9pt;">click ↑ 4 <i>Featured</i></span></center></div>
<p>Calculating initial returns for our covered call writing &amp; cash-secured put trades is intuitive and straightforward. For puts, we divide the premium by the difference between the put strike and the put premium:</p>
<p><em><strong>% initial put return = [(put premium/ (put strike &#8211; put premium)]</strong></em></p>
<p>When trade adjustment opportunities (exit strategies) are implemented, the accurate archiving and calculations of the trades can be somewhat challenging. Enter the <strong><a href="https://thebluecollarinvestor.com/minimembership/bci-trade-management-system/"><em>BCI Trade Management Calculator (TMC)</em></a></strong>. In this article, a real-life example with Howmet Aerospace Inc. (NYSE: HWM) will be analyzed demonstrating a series of put trades involving 2 exit strategies with 2 expiration dates. This trade was shared with me by a premium member.</p>
<p>&nbsp;</p>
<p><strong>Real-life example with HWM </strong></p>
<ul>
<li>1/22/2026: HWM trading at $221.00</li>
<li>1/22/2026: STO 1 x 1/30/2026 $210.00 put at $1.49 (9-day trade)</li>
<li>1/30/2026: HWM trading at $208.08, leaving the $210.00 strike now ITM</li>
<li>1/30/2026: BTC the 1/30/2026 $210.00 put strike at $2.00</li>
<li>1/30/2026: STO 1 x 2/6/2026 $207.50 put strike at $3.49 (roll-down)</li>
<li>2/6/2026: The $207.50 strike remains OTM and is closed at $0.04</li>
</ul>
<p>&nbsp;</p>
<p><strong>Implementing the Trade Management Calculator (TMC) with Multiple Expiration Dates</strong></p>
<p>The TMC can be utilized in a myriad of ways. Here’s how I do it:</p>
<p>When using multiple exit strategies with multiple expiration dates, we can use more than 1 TMC spreadsheet. The first spreadsheet is for the 1/30 expiration and the 2nd for the 2/6 expiration. Each contract expiration has 1 STO &amp; 1 BTC. You will note that the 1st shows a net debit of $51.00; the 2nd, a net credit of $345.00, resulting in a net credit of $294.00. More on this later.</p>
<p>&nbsp;</p>
<p><strong>TMC Spreadsheet for the 1/30/2026 Expiration</strong></p>
<p><img loading="lazy" decoding="async" class="alignnone size-full wp-image-213581" src="https://www.thebluecollarinvestor.com/wp-content/uploads/2026/02/HWM_1-30-2026_Put_Expiration.jpg" alt="" width="1351" height="811" srcset="https://www.thebluecollarinvestor.com/wp-content/uploads/2026/02/HWM_1-30-2026_Put_Expiration.jpg 1351w, https://www.thebluecollarinvestor.com/wp-content/uploads/2026/02/HWM_1-30-2026_Put_Expiration-1280x768.jpg 1280w, https://www.thebluecollarinvestor.com/wp-content/uploads/2026/02/HWM_1-30-2026_Put_Expiration-980x588.jpg 980w, https://www.thebluecollarinvestor.com/wp-content/uploads/2026/02/HWM_1-30-2026_Put_Expiration-480x288.jpg 480w" sizes="(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) and (max-width: 1280px) 1280px, (min-width: 1281px) 1351px, 100vw" /></p>
<ul>
<li>Red circle: This is a 9-day trade if taken through contract expiration</li>
<li>Yellow cell: The breakeven price point (BE) is $208.51</li>
<li>Brown cells: The initial 9-day return is 0.71%, 28.98% annualized</li>
<li>Purple cell: If HWM drops below the $210.00 strike and the put is not bought back (closed), shares will be purchased at a 5.65% discount (the BE price)</li>
<li>Pink cells: After closing the option at $2.00, there is a net option loss of $51.00 or 0.24%</li>
</ul>
<p>&nbsp;</p>
<p><strong>TMC Spreadsheet for the 2/6/2026 Expiration: <i>HWM closes at $222.60</i></strong></p>
<p><img loading="lazy" decoding="async" class="alignnone size-full wp-image-213583" src="https://www.thebluecollarinvestor.com/wp-content/uploads/2026/02/HWM_Trade_Journal.jpg" alt="" width="1107" height="445" srcset="https://www.thebluecollarinvestor.com/wp-content/uploads/2026/02/HWM_Trade_Journal.jpg 1107w, https://www.thebluecollarinvestor.com/wp-content/uploads/2026/02/HWM_Trade_Journal-980x394.jpg 980w, https://www.thebluecollarinvestor.com/wp-content/uploads/2026/02/HWM_Trade_Journal-480x193.jpg 480w" sizes="(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1107px, 100vw" /></p>
<ul>
<li>Red circle: This is an 8-day trade if taken through contract expiration</li>
<li>Yellow cell: The breakeven price point (BE) is $204.01</li>
<li>Brown cells: The initial 8-day return is 1.71%, 78.05% annualized</li>
<li>Purple cell: If HWM drops below the $207.50 strike and the put is not bought back (closed), shares will be purchased at a 1.96% discount (the BE price)</li>
<li>Green cells: After closing the option at $0.04, there is a net option gain of $345.00 or 1.69%</li>
<li>Note that the current TMC does not include an exit strategy to close an OTM strike, something we are considering, even if this is rarely used. As an alternative, we can make a notation in the Trade Journal, as shown on the right side of the screenshot</li>
</ul>
<p>&nbsp;</p>
<p><strong>Final Combined 16-Day Returns</strong></p>
<ul>
<li>Net credit = $345.00 &#8211; $51.00 = $294</li>
<li>Cost basis: $210.00 &#8211; $1.49 = $208.51</li>
<li>% 16-day return = 1.41%</li>
<li>Annualized return = 32.17%</li>
<li><em>Note: There was no need to close the deep OTM $207.50 contract on 2/6/2026. But costs only $0.04, so no harm</em></li>
</ul>
<p>&nbsp;</p>
<p><strong>Discussion</strong></p>
<p>There are many ways the TMC can be utilized, based on your trading style and needs. One way is to identify each TMC spreadsheet by contract expiration date. The Trade Journal can be utilized to make notations that will be helpful when reviewing trades. The <i>BCI Trade Management Calculator (TMC), </i>calculates initial returns, allows for trade adjustments and is a fantastic learning tool</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p><code><a id="Featured"></a></code></p>
<hr />
<h1 class="et_pb_module_heading"><strong>The New BCI Credit Spread Management System</strong></h1>
<p><img loading="lazy" decoding="async" class="alignnone size-full wp-image-213851" src="https://www.thebluecollarinvestor.com/wp-content/uploads/2026/06/CSC_Promo_Image.jpg" alt="" width="1080" height="515" srcset="https://www.thebluecollarinvestor.com/wp-content/uploads/2026/06/CSC_Promo_Image.jpg 1080w, https://www.thebluecollarinvestor.com/wp-content/uploads/2026/06/CSC_Promo_Image-980x467.jpg 980w, https://www.thebluecollarinvestor.com/wp-content/uploads/2026/06/CSC_Promo_Image-480x229.jpg 480w" sizes="(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1080px, 100vw" /></p>
<p>6-Tab calculator with context-sensitive help and the new BCI book, “The Blue Collar Investor Guide to Conservative Credit Spread Trading”</p>
<p>&nbsp;</p>
<p><strong><a href="https://www.thebluecollarinvestor.com/the-bci-credit-spread-management-system/">Click here for more.</a></strong></p>
<hr />
<p><strong>Your generous testimonials</strong></p>
<p><em>Over the years, the BCI community has been incredibly gracious by sending our BCI team email testimonials sharing stories as to what our educational content has meant to their families. Moving forward, we have decided to publish several of these testimonials in our blog articles. We will never use a last name unless given permission:</em></p>
<div dir="auto" data-olk-copy-source="MessageBody">
<div data-olk-copy-source="MessageBody">
<div class="x_elementToProof" data-olk-copy-source="MessageBody">
<div class="x_elementToProof" data-olk-copy-source="MessageBody">
<div dir="ltr" data-setdir="false" data-olk-copy-source="MessageBody">
<div dir="auto" data-olk-copy-source="MessageBody">
<div class="x_elementToProof" data-olk-copy-source="MessageBody">
<div class="x_elementToProof" data-olk-copy-source="MessageBody">
<div dir="ltr" data-setdir="false" data-olk-copy-source="MessageBody">
<div dir="auto" data-olk-copy-source="MessageBody">
<div dir="auto" data-olk-copy-source="MessageBody">
<div dir="ltr" data-setdir="false" data-olk-copy-source="MessageBody">
<div dir="ltr" data-setdir="false" data-olk-copy-source="MessageBody">
<div data-olk-copy-source="MessageBody">
<div dir="ltr" data-olk-copy-source="MessageBody">
<div dir="ltr" data-olk-copy-source="MessageBody">
<div data-olk-copy-source="MessageBody">
<div data-olk-copy-source="MessageBody">
<p class="x_MsoNormal">Hello Alan,</p>
</div>
<p><span data-olk-copy-source="MessageBody">I am a retired orthodontist and have read I think 3 of your books several times. In the last 10+ years I have been doing only PCP except for 5 months doing spreads. I had 100% of my money in tax free bonds at retirement. As interest rates fell, I was getting called a lot. I had lunch with my accountant and asked Joe what to do. He told me he was selling covered calls. I did not know what that was. I am now up 1,050,000$ at the end of last year. </span></p>
<p><span data-olk-copy-source="MessageBody">Thank you so much!!</span></p>
<p>Woody</p>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
<div dir="ltr" data-setdir="false" data-olk-copy-source="MessageBody">
<div dir="auto">_____________________________________________________________________</div>
<div dir="auto" data-olk-copy-source="MessageBody">
<div dir="auto" data-olk-copy-source="MessageBody">
<div dir="auto">
<div dir="auto">
<p><b><i>Sample trade video with ANET</i></b></p>
<p><a href="https://youtu.be/m2cRpcT6bjg"><b>C</b><b>lic</b><b>k h</b><b>ere.</b></a></p>
</div>
<div dir="auto"></div>
</div>
</div>
</div>
</div>
</div>
</div>
<div>_____________________________________________________________________</div>
<div></div>
<div><strong>Upcoming events</strong></div>
</div>
</div>
</div>
</div>
</div>
</div>
<div></div>
<p><strong>1. MoneyShow Masters Symposium Las Vegas</strong></p>
<p>Tuesday July 21, 2026</p>
<p>Caesars Palace Hotel, Las Vegas</p>
<p><strong>Title</strong><strong>: The Put-Call-Put (PCP) or Wheel Strategy</strong></p>
<p><strong>Subtitle</strong><strong>: </strong><strong>Generating cash flow &amp; buying shares at a discount using covered call writing and cash-secured puts</strong><strong> </strong></p>
<p><strong>Description</strong><strong>:</strong></p>
<p>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 <em>covered call writing</em> and <em>selling cash-secured puts</em>. This presentation will detail how to incorporate both strategies into one multi-tiered option-selling strategy where we either generate cash-flow or buy stock at a discount. I refer to this as the <em>Put-Call-Put (PCP) Strategy</em>, also referred to as the<em> wheel strategy</em>.</p>
<p>The basics and pros and cons are discussed as well as a real-life example and introduction into the BCI Trade Management Calculator (TMC). This seminar is appropriate for those who look to generate modest, but repeatable, returns which will enable us to beat the market on a consistent basis while focusing on capital preservation.</p>
<p><a href="https://lasvegasmms.com/registration/?scode=067456"><strong> Register here.</strong></a></p>
<p><strong>2. Mad Hedge Investor Summit</strong></p>
<p>Wednesday September 16, 2026</p>
<p>12 PM ET – 1 PM ET</p>
<p><strong>The Collar Strategy: Covered Call Writing with Protective Puts</strong></p>
<p><em>Protecting covered call trades from catastrophic share loss</em><em> </em></p>
<p>Protect our covered call trades by purchasing protective puts. This results in lower risk transactions, with lower, but still significant option returns. This is the strategy Bernie Madoff pretended to use. He called it the <em>split strike conversion strategy</em>, but it was simply a <em>collar</em>. The covered call sets a max gain and the protective put guarantees a maximum loss.</p>
<p><strong><u>Topics discussed</u></strong></p>
<ul>
<li><em>What is the collar strategy?</em></li>
<li><em>Uses for the collar</em></li>
<li><em>Entering a collar trade</em></li>
<li><em>Option basics for calls</em></li>
<li><em>Option basics for puts</em></li>
<li><em>Real-life example with NVDA</em></li>
<li><em>What is an option-chain?</em></li>
<li><em>Real-life example using the BCI Trade Management Calculator (TMC)</em></li>
<li><em>Strategy pros &amp; cons</em></li>
<li><em>Event offer</em></li>
<li><em>Q&amp;A</em></li>
</ul>
<p>Registration link to follow.</p>
<p><strong>3. Toronto Money Show</strong></p>
<p>September 24 – 25, 2026</p>
<p>MaRS Center, Toronto Canada</p>
<p><strong>4. Orlando Money Show</strong></p>
<p>October 5 – 7, 2026</p>
<p>Hilton Orlando Lake Buena Vista</p>
<p>Details to follow.</p>
<p><strong>5. American Association of Individual Investors: NYC Chapter</strong></p>
<p>Date and time to be confirmed.</p>
<p><strong>6. Triple Edge Investing Summit: <em>Technical Analysis • Options Strategies • ETF Mastery</em></strong></p>
<p>Saturday January 23, 2027</p>
<p>Zoom presentation</p>
<p>All-day paid event</p>
<p>All-day event hosted by 3 experts:</p>
<ul>
<li>Dr. Alan Ellman (options)</li>
<li>Dr. Eric Wish (technical analysis)</li>
<li>Les Masonson (ETFs)</li>
</ul>
<p>Hosted by <em>TraderLion University</em></p>
<p>Details to follow.</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<figure class="wp-block-image"><img loading="lazy" decoding="async" class="aligncenter size-large wp-image-212545" src="https://www.thebluecollarinvestor.com/wp-content/uploads/2024/11/ALL_Stars_Panel_Las_Vegas_2024-620x464.jpg" sizes="auto, (min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) 620px, 100vw" srcset="https://www.thebluecollarinvestor.com/wp-content/uploads/2024/11/ALL_Stars_Panel_Las_Vegas_2024-620x464.jpg 620w, https://www.thebluecollarinvestor.com/wp-content/uploads/2024/11/ALL_Stars_Panel_Las_Vegas_2024-480x359.jpg 480w" alt="" width="620" height="464" /><figcaption class="wp-element-caption">Alan speaking at <em>The All Stars of Options</em> event in Las Vegas</figcaption></figure>
<p>Begin additional segments text here (like testimonials, events, etc.)</p>
]]></content:encoded>
					
					<wfw:commentRss>https://www.thebluecollarinvestor.com/managing-multiple-put-trades-with-multiple-expirations-using-the-trade-management-calculator/feed/</wfw:commentRss>
			<slash:comments>4</slash:comments>
		
		
			</item>
		<item>
		<title>BCI PODCAST 175: Using Implied Volatility to Determine Safe Strikes for Portfolio Overwriting</title>
		<link>https://www.thebluecollarinvestor.com/bci-podcast-175-using-implied-volatility-to-determine-safe-strikes-for-portfolio-overwriting/</link>
					<comments>https://www.thebluecollarinvestor.com/bci-podcast-175-using-implied-volatility-to-determine-safe-strikes-for-portfolio-overwriting/#respond</comments>
		
		<dc:creator><![CDATA[Alan Ellman]]></dc:creator>
		<pubDate>Thu, 02 Jul 2026 09:55:04 +0000</pubDate>
				<category><![CDATA[Podcasts]]></category>
		<category><![CDATA[325 strike]]></category>
		<category><![CDATA[330 strike]]></category>
		<category><![CDATA[Alan Ellman]]></category>
		<category><![CDATA[annualized return]]></category>
		<category><![CDATA[at-the-money IV]]></category>
		<category><![CDATA[BCI podcast]]></category>
		<category><![CDATA[Blue Collar investor]]></category>
		<category><![CDATA[covered call strategy]]></category>
		<category><![CDATA[covered call writing]]></category>
		<category><![CDATA[expected price movement]]></category>
		<category><![CDATA[implied volatility]]></category>
		<category><![CDATA[IV]]></category>
		<category><![CDATA[long-term buy and hold]]></category>
		<category><![CDATA[low cost basis]]></category>
		<category><![CDATA[non-sheltered accounts]]></category>
		<category><![CDATA[one standard deviation]]></category>
		<category><![CDATA[option chain]]></category>
		<category><![CDATA[option-selling]]></category>
		<category><![CDATA[options income]]></category>
		<category><![CDATA[out of the money covered calls]]></category>
		<category><![CDATA[PayPal PYPL]]></category>
		<category><![CDATA[Portfolio Overwriting]]></category>
		<category><![CDATA[retain shares]]></category>
		<category><![CDATA[safe strike selection]]></category>
		<category><![CDATA[trade management calculator]]></category>
		<category><![CDATA[trading range calculator]]></category>
		<guid isPermaLink="false">https://www.thebluecollarinvestor.com/?p=213853</guid>

					<description><![CDATA[﻿ Portfolio overwriting is a covered call writing-like strategy where we seek to generate additional portfolio income by selling deep OTM call options, unlikely to expire in-the-money. This podcast will [&#8230;]]]></description>
										<content:encoded><![CDATA[<p><iframe loading="lazy" title="YouTube video player" src="https://www.youtube.com/embed/TuOdEJetqZM" width="560" height="315" frameborder="0" allowfullscreen="allowfullscreen"><span style="display: inline-block; width: 0px; overflow: hidden; line-height: 0;" data-mce-type="bookmark" class="mce_SELRES_start">﻿</span><br />
</iframe></p>
<p>Portfolio overwriting is a covered call writing-like strategy where we seek to generate additional portfolio income by selling deep OTM call options, unlikely to expire in-the-money.</p>
<p>This podcast will analyze a strategy using implied volatility and the BCI Expected Price Movement Calculator to select strikes that have approximately an 84% probability of success (not expiring in-the-money).</p>
<p>&nbsp;</p>
<p><b>Free Resources:</b><br />
<a href="https://thebluecollarinvestor.com/minimembership/bci-free-resources/">https://thebluecollarinvestor.com/minimembership/bci-free-resources/</a></p>
<p><b>Premium Membership:</b><br />
⁠<a href="https://thebluecollarinvestor.com/minimembership/premium-membership/">https://thebluecollarinvestor.com/minimembership/premium-membership/</a></p>
<p><b>Best Discounted Packages:</b></p>
<p style="padding-left: 40px;">1. BCI Package, our Best and most Comprehensive Investment package:<br />
⁠<a href="https://thebluecollarinvestor.com/minimembership/bci-investor-program/">https://thebluecollarinvestor.com/minimembership/bci-investor-program/</a></p>
<p style="padding-left: 40px;">2. TCM Package &#8211; BCI Trade Management System:<br />
⁠<a href="https://thebluecollarinvestor.com/minimembership/bci-trade-management-system/">https://thebluecollarinvestor.com/minimembership/bci-trade-management-system/</a></p>
<p style="padding-left: 40px;">3. CEO Package &#8211; Includes TMC Package:<br />
⁠<a href="https://thebluecollarinvestor.com/minimembership/ceo-package/">https://thebluecollarinvestor.com/minimembership/ceo-package/</a></p>
<p style="padding-left: 40px;">4. Credit Spread Management System<br />
<a href="https://www.thebluecollarinvestor.com/the-bci-credit-spread-management-system/">https://www.thebluecollarinvestor.com/the-bci-credit-spread-management-system/</a></p>
<p style="padding-left: 40px;">
]]></content:encoded>
					
					<wfw:commentRss>https://www.thebluecollarinvestor.com/bci-podcast-175-using-implied-volatility-to-determine-safe-strikes-for-portfolio-overwriting/feed/</wfw:commentRss>
			<slash:comments>0</slash:comments>
		
		
			</item>
		<item>
		<title>Shorter-Dated Options Generate the Highest Annualized Returns</title>
		<link>https://www.thebluecollarinvestor.com/shorter-dated-options-generate-the-highest-annualized-returns/</link>
					<comments>https://www.thebluecollarinvestor.com/shorter-dated-options-generate-the-highest-annualized-returns/#comments</comments>
		
		<dc:creator><![CDATA[Alan Ellman]]></dc:creator>
		<pubDate>Sat, 27 Jun 2026 10:59:36 +0000</pubDate>
				<category><![CDATA[Exit Strategies]]></category>
		<category><![CDATA[Investment Basics]]></category>
		<category><![CDATA[Option Trading Basics]]></category>
		<category><![CDATA[Options Calculations]]></category>
		<category><![CDATA[Options Trade Execution]]></category>
		<category><![CDATA[Stock Option Strategies]]></category>
		<guid isPermaLink="false">https://www.thebluecollarinvestor.com/?p=213575</guid>

					<description><![CDATA[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 [&#8230;]]]></description>
										<content:encoded><![CDATA[<div style="float: right; border: none; line-height: .5pt; margin-bottom: 23px; margin-left: 33px;"><a href="#Featured"><img loading="lazy" decoding="async" style="border: none;" src="https://www.thebluecollarinvestor.com/wp-content/uploads/2023/09/icon_bci-FEATURED-PRODUCTS-SERVICES-V3b_09-20-23.jpg" alt="" width="124" height="104" /></a><br />
<center><span style="color: #808080; font-size: 9pt;">click ↑ 4 <i>Featured</i></span></center></div>
<p>When selling <a href="https://thebluecollarinvestor.com/minimembership/selling-cash-secured-puts-basic-and-advanced-principles-6-part-video-series-workbook/">cash-secured puts</a> (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 that $17.00 premium? Before you answer &#8220;yes, of course&#8221;, don&#8217;t forget to factor in the time to expiration. <em>Typically, shorter-dated options generate the highest annualized returns</em>. In this article, a real-life example with <a href="https://www.thebluecollarinvestor.com/comparing-nasdaq-100-etfs-real-life-examples-with-qqq-qqqm/">Invesco QQQ Trust (Nasdaq: QQQ)</a> will be analyzed to confirm this principle.</p>
<p><strong>Real-life example with QQQ</strong></p>
<ul>
<li>2/6/2026: QQQ trading at 602.28</li>
<li>2/6/2026: The 3/13/2026 $590.00 put shows a bid price of $11.71</li>
<li>2/6/2026: The 4/17/2026 $590.00 put shows a bid price of $17.10</li>
<li>2/6/2026: The 5/15/2026 $590.00 put shows a bid price of $20.67</li>
<li>Are these listed worst-to-best or best-to-worst? Let&#8217;s see.</li>
</ul>
<p>&nbsp;</p>
<p><strong>QQQ put calculations using the BCI Trade Management Calculator (TMC)</strong></p>
<p><img loading="lazy" decoding="async" class="alignnone size-full wp-image-213576" src="https://www.thebluecollarinvestor.com/wp-content/uploads/2026/02/QQQ_Annualized_Return_Calc.jpg" alt="" width="1600" height="350" srcset="https://www.thebluecollarinvestor.com/wp-content/uploads/2026/02/QQQ_Annualized_Return_Calc.jpg 1600w, https://www.thebluecollarinvestor.com/wp-content/uploads/2026/02/QQQ_Annualized_Return_Calc-1280x280.jpg 1280w, https://www.thebluecollarinvestor.com/wp-content/uploads/2026/02/QQQ_Annualized_Return_Calc-980x214.jpg 980w, https://www.thebluecollarinvestor.com/wp-content/uploads/2026/02/QQQ_Annualized_Return_Calc-480x105.jpg 480w" sizes="(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) and (max-width: 1280px) 1280px, (min-width: 1281px) 1600px, 100vw" /></p>
<ul>
<li>Red oval: Days-to-expiration (DTE) for each contract</li>
<li>Yellow field: Breakeven (BE) price points: larger premiums have the lowest BE prices</li>
<li>Brown field: Initial returns: Shorter dated options have the lowest initial returns, before annualizing</li>
<li>Pink field: Initial annualized returns: Shorter-dated options typically have the highest annualized returns</li>
</ul>
<p>&nbsp;</p>
<p><strong>Discussion</strong></p>
<p>When evaluating option premium returns, in addition to the premium dollar amount, we must also factor in time-to-expiration. The best way to accomplish this is to annualize our returns. This will allow us to compare &#8220;apples-to-apples&#8221; when making our trade decisions. Our <a href="https://thebluecollarinvestor.com/minimembership/bci-trade-management-system/">BCI Trade Management Calculator (TMC)</a> will simplify and achieve these computations for us.</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p><code><a id="Featured"></a></code></p>
<hr />
<h3>The Blue Collar Investor’s Guide to:</h3>
<p><strong>Exit Strategies for Covered Call Writing and Selling Cash-Secured Puts</strong></p>
<p><img loading="lazy" decoding="async" class="alignnone size-full wp-image-213837" src="https://www.thebluecollarinvestor.com/wp-content/uploads/2026/06/Excit_Strategies_Book_Cover_Image.jpg" alt="" width="440" height="634" srcset="https://www.thebluecollarinvestor.com/wp-content/uploads/2026/06/Excit_Strategies_Book_Cover_Image.jpg 440w, https://www.thebluecollarinvestor.com/wp-content/uploads/2026/06/Excit_Strategies_Book_Cover_Image-208x300.jpg 208w, https://www.thebluecollarinvestor.com/wp-content/uploads/2026/06/Excit_Strategies_Book_Cover_Image-430x620.jpg 430w, https://www.thebluecollarinvestor.com/wp-content/uploads/2026/06/Excit_Strategies_Book_Cover_Image-17x24.jpg 17w, https://www.thebluecollarinvestor.com/wp-content/uploads/2026/06/Excit_Strategies_Book_Cover_Image-25x36.jpg 25w, https://www.thebluecollarinvestor.com/wp-content/uploads/2026/06/Excit_Strategies_Book_Cover_Image-33x48.jpg 33w" sizes="(max-width: 440px) 100vw, 440px" /></p>
<p>This book will detail how to enter, manage and calculate trade adjustments for all market conditions. After we select the underlying security and sell the corresponding option, we immediately move into position management mode. There are over 20 exit strategies defined, as well and when and how to implement these plans.</p>
<p><a href="https://thebluecollarinvestor.com/minimembership/softcover-exit-strategies-for-covered-call-writing-and-selling-cash-secured-puts/"><strong>Click here to learn more.</strong></a></p>
<hr />
<p><strong>Your generous testimonials</strong></p>
<p><em>Over the years, the BCI community has been incredibly gracious by sending our BCI team email testimonials sharing stories as to what our educational content has meant to their families. Moving forward, we have decided to publish several of these testimonials in our blog articles. We will never use a last name unless given permission:</em></p>
<div dir="auto" data-olk-copy-source="MessageBody">
<div data-olk-copy-source="MessageBody">
<div class="x_elementToProof" data-olk-copy-source="MessageBody">
<div class="x_elementToProof" data-olk-copy-source="MessageBody">
<div dir="ltr" data-setdir="false" data-olk-copy-source="MessageBody">
<div dir="auto" data-olk-copy-source="MessageBody">
<div class="x_elementToProof" data-olk-copy-source="MessageBody">
<div class="x_elementToProof" data-olk-copy-source="MessageBody">
<div dir="ltr" data-setdir="false" data-olk-copy-source="MessageBody">
<div dir="auto" data-olk-copy-source="MessageBody">
<div dir="auto" data-olk-copy-source="MessageBody">
<div dir="ltr" data-setdir="false" data-olk-copy-source="MessageBody">
<div dir="ltr" data-setdir="false" data-olk-copy-source="MessageBody">
<div data-olk-copy-source="MessageBody">
<div dir="ltr" data-olk-copy-source="MessageBody">
<div dir="ltr" data-olk-copy-source="MessageBody">
<div data-olk-copy-source="MessageBody">
<div data-olk-copy-source="MessageBody">
<p class="x_MsoNormal">Alan &amp; Barry,</p>
<p class="x_MsoNormal">Loved last week’s PCP (Wheel) Strategy lessons.</p>
<div>Joe K</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
<div dir="ltr" data-setdir="false" data-olk-copy-source="MessageBody">
<div dir="auto">_____________________________________________________________________</div>
<div dir="auto" data-olk-copy-source="MessageBody">
<div dir="auto" data-olk-copy-source="MessageBody">
<div dir="auto">
<div dir="auto">
<p><b><i>Alan interviewed on the Financial H.E.A.T podcast</i></b></p>
<p><a href="https://www.youtube.com/watch?v=l0B2I67Ljlk"><b>C</b><b>lic</b><b>k h</b><b>ere.</b></a></p>
</div>
<div dir="auto"></div>
</div>
</div>
</div>
</div>
</div>
</div>
<div>_____________________________________________________________________</div>
<div></div>
<div><strong>Upcoming events</strong></div>
</div>
</div>
</div>
</div>
</div>
</div>
<div></div>
<p><strong>1. MoneyShow Masters Symposium Las Vegas</strong></p>
<p>Tuesday July 21, 2026</p>
<p>Caesars Palace Hotel, Las Vegas</p>
<p><strong>Title</strong><strong>: The Put-Call-Put (PCP) or Wheel Strategy</strong></p>
<p><strong>Subtitle</strong><strong>: </strong><strong>Generating cash flow &amp; buying shares at a discount using covered call writing and cash-secured puts</strong><strong> </strong></p>
<p><strong>Description</strong><strong>:</strong></p>
<p>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 <em>covered call writing</em> and <em>selling cash-secured puts</em>. This presentation will detail how to incorporate both strategies into one multi-tiered option-selling strategy where we either generate cash-flow or buy stock at a discount. I refer to this as the <em>Put-Call-Put (PCP) Strategy</em>, also referred to as the<em> wheel strategy</em>.</p>
<p>The basics and pros and cons are discussed as well as a real-life example and introduction into the BCI Trade Management Calculator (TMC). This seminar is appropriate for those who look to generate modest, but repeatable, returns which will enable us to beat the market on a consistent basis while focusing on capital preservation.</p>
<p><a href="https://lasvegasmms.com/registration/?scode=067456"><strong> Register here.</strong></a></p>
<p><strong>2. Mad Hedge Investor Summit</strong></p>
<p>Wednesday September 16, 2026</p>
<p>12 PM ET – 1 PM ET</p>
<p><strong>The Collar Strategy: Covered Call Writing with Protective Puts</strong></p>
<p><em>Protecting covered call trades from catastrophic share loss</em><em> </em></p>
<p>Protect our covered call trades by purchasing protective puts. This results in lower risk transactions, with lower, but still significant option returns. This is the strategy Bernie Madoff pretended to use. He called it the <em>split strike conversion strategy</em>, but it was simply a <em>collar</em>. The covered call sets a max gain and the protective put guarantees a maximum loss.</p>
<p><strong><u>Topics discussed</u></strong></p>
<ul>
<li><em>What is the collar strategy?</em></li>
<li><em>Uses for the collar</em></li>
<li><em>Entering a collar trade</em></li>
<li><em>Option basics for calls</em></li>
<li><em>Option basics for puts</em></li>
<li><em>Real-life example with NVDA</em></li>
<li><em>What is an option-chain?</em></li>
<li><em>Real-life example using the BCI Trade Management Calculator (TMC)</em></li>
<li><em>Strategy pros &amp; cons</em></li>
<li><em>Event offer</em></li>
<li><em>Q&amp;A</em></li>
</ul>
<p>Registration link to follow.</p>
<p><strong>3. Toronto Money Show</strong></p>
<p>September 24 – 25, 2026</p>
<p>MaRS Center, Toronto Canada</p>
<p><strong>4. Orlando Money Show</strong></p>
<p>October 5 – 7, 2026</p>
<p>Hilton Orlando Lake Buena Vista</p>
<p>Details to follow.</p>
<p><strong>5. American Association of Individual Investors: NYC Chapter</strong></p>
<p>Date and time to be confirmed.</p>
<p><strong>6. Triple Edge Investing Summit: <em>Technical Analysis • Options Strategies • ETF Mastery</em></strong></p>
<p>Saturday January 23, 2027</p>
<p>Zoom presentation</p>
<p>All-day paid event</p>
<p>All-day event hosted by 3 experts:</p>
<ul>
<li>Dr. Alan Ellman (options)</li>
<li>Dr. Eric Wish (technical analysis)</li>
<li>Les Masonson (ETFs)</li>
</ul>
<p>Hosted by <em>TraderLion University</em></p>
<p>Details to follow.</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<figure class="wp-block-image"><img loading="lazy" decoding="async" class="aligncenter size-large wp-image-212545" src="https://www.thebluecollarinvestor.com/wp-content/uploads/2024/11/ALL_Stars_Panel_Las_Vegas_2024-620x464.jpg" sizes="auto, (min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) 620px, 100vw" srcset="https://www.thebluecollarinvestor.com/wp-content/uploads/2024/11/ALL_Stars_Panel_Las_Vegas_2024-620x464.jpg 620w, https://www.thebluecollarinvestor.com/wp-content/uploads/2024/11/ALL_Stars_Panel_Las_Vegas_2024-480x359.jpg 480w" alt="" width="620" height="464" /><figcaption class="wp-element-caption">Alan speaking at <em>The All Stars of Options</em> event in Las Vegas</figcaption></figure>
<p>Begin additional segments text here (like testimonials, events, etc.)</p>
]]></content:encoded>
					
					<wfw:commentRss>https://www.thebluecollarinvestor.com/shorter-dated-options-generate-the-highest-annualized-returns/feed/</wfw:commentRss>
			<slash:comments>2</slash:comments>
		
		
			</item>
		<item>
		<title>From In-The-Money (ITM) to Out-Of-The-Money (OTM) Covered Calls: Mitigating Losing Trades</title>
		<link>https://www.thebluecollarinvestor.com/from-in-the-money-itm-to-out-of-the-money-otm-covered-calls/</link>
					<comments>https://www.thebluecollarinvestor.com/from-in-the-money-itm-to-out-of-the-money-otm-covered-calls/#comments</comments>
		
		<dc:creator><![CDATA[Alan Ellman]]></dc:creator>
		<pubDate>Sat, 20 Jun 2026 11:20:28 +0000</pubDate>
				<category><![CDATA[Covered Call Exit Strategies]]></category>
		<category><![CDATA[Fundamental Analysis]]></category>
		<category><![CDATA[Investment Basics]]></category>
		<category><![CDATA[Option Trading Basics]]></category>
		<category><![CDATA[Options Calculations]]></category>
		<category><![CDATA[Options Trade Execution]]></category>
		<category><![CDATA[Stock Option Strategies]]></category>
		<guid isPermaLink="false">https://www.thebluecollarinvestor.com/?p=213569</guid>

					<description><![CDATA[click ↑ 4 Featured Selling ITM covered calls is a defensive approach to the strategy; selling OTM covered calls is a more traditional or aggressive perspective. In this article, a [&#8230;]]]></description>
										<content:encoded><![CDATA[<div style="float: right; border: none; line-height: .5pt; margin-bottom: 23px; margin-left: 33px;"><a href="#Featured"><img loading="lazy" decoding="async" style="border: none;" src="https://www.thebluecollarinvestor.com/wp-content/uploads/2023/09/icon_bci-FEATURED-PRODUCTS-SERVICES-V3b_09-20-23.jpg" alt="" width="124" height="104" /></a><br />
<center><span style="color: #808080; font-size: 9pt;">click ↑ 4 <i>Featured</i></span></center></div>
<p>Selling ITM covered calls is a defensive approach to the strategy; selling OTM covered calls is a more traditional or aggressive perspective. In this article, a series of trades I executed with Wheaton Precious Metals Corp. (NYSE: WPM) are analyzed. The initial trades were defensive in nature (ITM) and for the next contract expiration I moved to a traditional approach (OTM).</p>
<p><strong>Real-life example with WPM (3 ITM strikes)</strong></p>
<ul>
<li>1/26/2026: WPM trading at $152.79</li>
<li>1/26/2026: STO 1 x 1/30/2026 $146.00 call at $8.13</li>
<li>1/26/2026: STO 1 x 1/30/2026 $144.00 calls at $9.70</li>
<li>1/26/2026: STO 1 x 1/30/2026: $142.00 call at $11.00</li>
<li>1/30/2026: <em>All precious metal stocks crashed as a reaction to the nomination of the new Fed Chair</em></li>
<li>1/30/2026: WPM closed below all ITM strikes; all expired worthless and 300 shares were retained at a cost basis of $143.11 (ouch)</li>
<li>2/2/2026: I still liked WPM; considered Friday an over-reaction</li>
<li>2/2/2026: WPM trading at $131.87</li>
<li>2/2/2026: STO 3 x 2/6/2026 $140.00 calls (OTM) at $1.06</li>
</ul>
<p>&nbsp;</p>
<p><strong>WPM OTM call calculations</strong></p>
<p><img loading="lazy" decoding="async" class="alignnone size-full wp-image-213570" src="https://www.thebluecollarinvestor.com/wp-content/uploads/2026/02/WPM_OTM_CALL_CALC.jpg" alt="" width="930" height="306" srcset="https://www.thebluecollarinvestor.com/wp-content/uploads/2026/02/WPM_OTM_CALL_CALC.jpg 930w, https://www.thebluecollarinvestor.com/wp-content/uploads/2026/02/WPM_OTM_CALL_CALC-480x158.jpg 480w" sizes="(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) 930px, 100vw" /></p>
<ul>
<li>Red circle: 5-day trade</li>
<li>Yellow cell: Breakeven price points (at the time of the latest trade)</li>
<li>Brown cell: Initial 5-day returns</li>
<li>Green cell: Annualized initial returns</li>
<li>Purple cell: Upside potential, if shares move up to or beyond the $140.00 call strike))</li>
<li>Pink cell: Dollar amount of premium collected</li>
<li>Red cell: $ amount of upside potential</li>
</ul>
<p>&nbsp;</p>
<p><strong>Final OTM results after expiration of the 2/6/2026 contracts</strong></p>
<p>WPM closed on expiration Friday at $135.98. Here are the final results using the <a href="https://thebluecollarinvestor.com/minimembership/bci-trade-management-system/"><em>BCI Trade Management Calculator (TMC):</em></a></p>
<p><img loading="lazy" decoding="async" class="alignnone size-full wp-image-213577" src="https://www.thebluecollarinvestor.com/wp-content/uploads/2026/02/WPM_ITM_OTM_FINAL_RESULTS.jpg" alt="" width="1532" height="620" srcset="https://www.thebluecollarinvestor.com/wp-content/uploads/2026/02/WPM_ITM_OTM_FINAL_RESULTS.jpg 1532w, https://www.thebluecollarinvestor.com/wp-content/uploads/2026/02/WPM_ITM_OTM_FINAL_RESULTS-1280x518.jpg 1280w, https://www.thebluecollarinvestor.com/wp-content/uploads/2026/02/WPM_ITM_OTM_FINAL_RESULTS-980x397.jpg 980w, https://www.thebluecollarinvestor.com/wp-content/uploads/2026/02/WPM_ITM_OTM_FINAL_RESULTS-480x194.jpg 480w" sizes="(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) and (max-width: 1280px) 1280px, (min-width: 1281px) 1532px, 100vw" /></p>
<ul>
<li>Red arrow: Exit strategy selected</li>
<li>Blue arrow: Price of WPM at expiration</li>
<li>Green cells: Final realized option profit per-share, for 300 shares and % return</li>
<li>Brown cells: Final unrealized share gain per-share, for 300 shares and % return</li>
<li>Pink cells: Combined realized &amp; unrealized total dollar profit and total % return</li>
</ul>
<p>&nbsp;</p>
<p><strong>Discussion</strong></p>
<p>The unexpected market reaction to the Fed Chair nomination resulted in an unrealized ITM loss. The ensuing OTM covered call trade resulted in an unrealized (shares not yet sold) gain. My plan is to continue writing covered calls, since the next <a href="https://www.thebluecollarinvestor.com/circumventing-earnings-reports-with-weekly-options/">earnings report</a> is scheduled for 3/16/2026 and will not interfere with continuing cash flow from these trades. <em>Not all trades will be winning ones. Understanding the reason(s) for losses and knowing how to mitigate will, ultimately, result in superior trading results.</em></p>
<p>________________________________________________________________________________________________________________</p>
<p><strong>***For 19 years I have been fulfilling my promise to share losing, as well as winning trades. These trades are examples of how to mitigate trades that turn against us. Not all trades will be winners. By mastering all aspects of option trading, there will be substantially more winners than losers, especially when losers are reduced and winners are enhanced.</strong></p>
<p>_________________________________________________________________________________________________________________</p>
<p>&nbsp;</p>
<p><code><a id="Featured"></a></code></p>
<hr />
<h1 class="main_title"><strong>Alan Ellman’s Complete Encyclopedia For Covered Call Writing- Classic Edition</strong></h1>
<p><img loading="lazy" decoding="async" class="alignnone size-full wp-image-213834" src="https://www.thebluecollarinvestor.com/wp-content/uploads/2026/06/Complete_Encyclopedia_Cover.jpg" alt="" width="364" height="514" srcset="https://www.thebluecollarinvestor.com/wp-content/uploads/2026/06/Complete_Encyclopedia_Cover.jpg 364w, https://www.thebluecollarinvestor.com/wp-content/uploads/2026/06/Complete_Encyclopedia_Cover-212x300.jpg 212w, https://www.thebluecollarinvestor.com/wp-content/uploads/2026/06/Complete_Encyclopedia_Cover-17x24.jpg 17w, https://www.thebluecollarinvestor.com/wp-content/uploads/2026/06/Complete_Encyclopedia_Cover-25x36.jpg 25w, https://www.thebluecollarinvestor.com/wp-content/uploads/2026/06/Complete_Encyclopedia_Cover-34x48.jpg 34w" sizes="(max-width: 364px) 100vw, 364px" /></p>
<p>Over 500 pages packed with solid information, no useless filler material<br />
151 charts and graphs most of which are in color for better visualization<br />
Chapter outlines to summarize the material located in each chapter.</p>
<p><a href="https://thebluecollarinvestor.com/minimembership/register/softcover-alan-ellmans-complete-encyclopedia-for-covered-call-writing-classic-edition/"><strong>Click here to learn more.</strong></a></p>
<hr />
<p><strong>Your generous testimonials</strong></p>
<p><em>Over the years, the BCI community has been incredibly gracious by sending our BCI team email testimonials sharing stories as to what our educational content has meant to their families. Moving forward, we have decided to publish several of these testimonials in our blog articles. We will never use a last name unless given permission:</em></p>
<div dir="auto" data-olk-copy-source="MessageBody">
<div data-olk-copy-source="MessageBody">
<div class="x_elementToProof" data-olk-copy-source="MessageBody">
<div class="x_elementToProof" data-olk-copy-source="MessageBody">
<div dir="ltr" data-setdir="false" data-olk-copy-source="MessageBody">
<div dir="auto" data-olk-copy-source="MessageBody">
<div class="x_elementToProof" data-olk-copy-source="MessageBody">
<div class="x_elementToProof" data-olk-copy-source="MessageBody">
<div dir="ltr" data-setdir="false" data-olk-copy-source="MessageBody">
<div dir="auto" data-olk-copy-source="MessageBody">
<div dir="auto" data-olk-copy-source="MessageBody">
<div dir="ltr" data-setdir="false" data-olk-copy-source="MessageBody">
<div dir="ltr" data-setdir="false" data-olk-copy-source="MessageBody">
<div data-olk-copy-source="MessageBody">
<div dir="ltr" data-olk-copy-source="MessageBody">
<div dir="ltr" data-olk-copy-source="MessageBody">
<div data-olk-copy-source="MessageBody">
<div data-olk-copy-source="MessageBody">
<p class="x_MsoNormal"><span data-olk-copy-source="MessageBody">Hi Alan,</span></p>
<p class="x_MsoNormal">Thanks for your presentation yesterday, you and Barry did a fantastic job. As an FYI, I am currently based in Australia so another big thank you for running the show in your evening/my morning. Much better than my trading in the very small hours of the Aussie day!</p>
<p class="x_MsoNormal">I have already benefited from the educational books on CCW and CSP’s plus paid for the calculators etc. I’m keen to receive your stock/ETF weekly/monthly reports via the annual premium membership.</p>
<p class="x_MsoNormal">Many thanks.</p>
<p class="x_MsoNormal">Lawrence, Sydney, Down-under</p>
<p class="x_MsoNormal">
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
<div dir="ltr" data-setdir="false" data-olk-copy-source="MessageBody">
<div dir="auto">_____________________________________________________________________</div>
<div dir="auto" data-olk-copy-source="MessageBody">
<div dir="auto" data-olk-copy-source="MessageBody">
<div dir="auto">
<div dir="auto">
<p><b><i>New Quasar Markets video</i></b></p>
<p><a href="https://x.com/QuasarMarkets/status/2066967445349556316"><b>C</b><b>lic</b><b>k h</b><b>ere.</b></a></p>
</div>
<div dir="auto"></div>
</div>
</div>
</div>
</div>
</div>
</div>
<div>_____________________________________________________________________</div>
<div></div>
<div><strong>Upcoming events</strong></div>
</div>
</div>
</div>
</div>
</div>
</div>
<div></div>
<p><strong>1. MoneyShow Masters Symposium Las Vegas</strong></p>
<p>Tuesday July 21, 2026</p>
<p>Caesars Palace Hotel, Las Vegas</p>
<p><strong>Title</strong><strong>: The Put-Call-Put (PCP) or Wheel Strategy</strong></p>
<p><strong>Subtitle</strong><strong>: </strong><strong>Generating cash flow &amp; buying shares at a discount using covered call writing and cash-secured puts</strong><strong> </strong></p>
<p><strong>Description</strong><strong>:</strong></p>
<p>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 <em>covered call writing</em> and <em>selling cash-secured puts</em>. This presentation will detail how to incorporate both strategies into one multi-tiered option-selling strategy where we either generate cash-flow or buy stock at a discount. I refer to this as the <em>Put-Call-Put (PCP) Strategy</em>, also referred to as the<em> wheel strategy</em>.</p>
<p>The basics and pros and cons are discussed as well as a real-life example and introduction into the BCI Trade Management Calculator (TMC). This seminar is appropriate for those who look to generate modest, but repeatable, returns which will enable us to beat the market on a consistent basis while focusing on capital preservation.</p>
<p><a href="https://lasvegasmms.com/registration/?scode=067456"><strong> Register here.</strong></a></p>
<p><strong>2. Mad Hedge Investor Summit</strong></p>
<p>Wednesday September 16, 2026</p>
<p>12 PM ET &#8211; 1 PM ET</p>
<p><strong>The Collar Strategy: Covered Call Writing with Protective Puts</strong></p>
<p><em>Protecting covered call trades from catastrophic share loss</em><em> </em></p>
<p>Protect our covered call trades by purchasing protective puts. This results in lower risk transactions, with lower, but still significant option returns. This is the strategy Bernie Madoff pretended to use. He called it the <em>split strike conversion strategy</em>, but it was simply a <em>collar</em>. The covered call sets a max gain and the protective put guarantees a maximum loss.</p>
<p><strong><u>Topics discussed</u></strong></p>
<ul>
<li><em>What is the collar strategy?</em></li>
<li><em>Uses for the collar</em></li>
<li><em>Entering a collar trade</em></li>
<li><em>Option basics for calls</em></li>
<li><em>Option basics for puts</em></li>
<li><em>Real-life example with NVDA</em></li>
<li><em>What is an option-chain?</em></li>
<li><em>Real-life example using the BCI Trade Management Calculator (TMC)</em></li>
<li><em>Strategy pros &amp; cons</em></li>
<li><em>Event offer</em></li>
<li><em>Q&amp;A</em></li>
</ul>
<p>Registration link to follow.</p>
<p><strong>3. Toronto Money Show</strong></p>
<p>September 24 – 25, 2026</p>
<p>MaRS Center, Toronto Canada</p>
<p><strong>4. Orlando Money Show</strong></p>
<p>October 5 – 7, 2026</p>
<p>Hilton Orlando Lake Buena Vista</p>
<p>Details to follow.</p>
<p><strong>5. American Association of Individual Investors: NYC Chapter</strong></p>
<p>Date and time to be confirmed.</p>
<p><strong>6. Triple Edge Investing Summit: <em>Technical Analysis • Options Strategies • ETF Mastery</em></strong></p>
<p>Saturday January 23, 2027</p>
<p>Zoom presentation</p>
<p>All-day paid event</p>
<p>All-day event hosted by 3 experts:</p>
<ul>
<li>Dr. Alan Ellman (options)</li>
<li>Dr. Eric Wish (technical analysis)</li>
<li>Les Masonson (ETFs)</li>
</ul>
<p>Hosted by <em>TraderLion University</em></p>
<p>Details to follow.</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<figure class="wp-block-image"><img loading="lazy" decoding="async" class="aligncenter size-large wp-image-212545" src="https://www.thebluecollarinvestor.com/wp-content/uploads/2024/11/ALL_Stars_Panel_Las_Vegas_2024-620x464.jpg" sizes="auto, (min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) 620px, 100vw" srcset="https://www.thebluecollarinvestor.com/wp-content/uploads/2024/11/ALL_Stars_Panel_Las_Vegas_2024-620x464.jpg 620w, https://www.thebluecollarinvestor.com/wp-content/uploads/2024/11/ALL_Stars_Panel_Las_Vegas_2024-480x359.jpg 480w" alt="" width="620" height="464" /><figcaption class="wp-element-caption">Alan speaking at <em>The All Stars of Options</em> event in Las Vegas</figcaption></figure>
<p>Begin additional segments text here (like testimonials, events, etc.)</p>
]]></content:encoded>
					
					<wfw:commentRss>https://www.thebluecollarinvestor.com/from-in-the-money-itm-to-out-of-the-money-otm-covered-calls/feed/</wfw:commentRss>
			<slash:comments>4</slash:comments>
		
		
			</item>
		<item>
		<title>BCI PODCAST 174: Rolling-Up a Covered Call Trade in the Same Contract Month</title>
		<link>https://www.thebluecollarinvestor.com/bci-podcast-174-rolling-up-a-covered-call-trade-in-the-same-contract-month/</link>
					<comments>https://www.thebluecollarinvestor.com/bci-podcast-174-rolling-up-a-covered-call-trade-in-the-same-contract-month/#respond</comments>
		
		<dc:creator><![CDATA[Alan Ellman]]></dc:creator>
		<pubDate>Thu, 18 Jun 2026 09:55:39 +0000</pubDate>
				<category><![CDATA[Podcasts]]></category>
		<category><![CDATA[Alan Ellman]]></category>
		<category><![CDATA[BCI podcast]]></category>
		<category><![CDATA[Blue Collar investor]]></category>
		<category><![CDATA[Cash-secured puts]]></category>
		<category><![CDATA[conservative investing]]></category>
		<category><![CDATA[covered call exit strategy]]></category>
		<category><![CDATA[covered call trade management]]></category>
		<category><![CDATA[covered call writing]]></category>
		<category><![CDATA[Ford Motor Company]]></category>
		<category><![CDATA[Ford stock options]]></category>
		<category><![CDATA[in the money calls]]></category>
		<category><![CDATA[intrinsic value]]></category>
		<category><![CDATA[option premium]]></category>
		<category><![CDATA[option-selling]]></category>
		<category><![CDATA[options education]]></category>
		<category><![CDATA[options income]]></category>
		<category><![CDATA[options trading]]></category>
		<category><![CDATA[rolling up covered calls]]></category>
		<category><![CDATA[rolling up options]]></category>
		<category><![CDATA[same contract month]]></category>
		<category><![CDATA[short call adjustment]]></category>
		<category><![CDATA[stock options]]></category>
		<category><![CDATA[ticker F]]></category>
		<category><![CDATA[time value]]></category>
		<category><![CDATA[trade management calculator]]></category>
		<guid isPermaLink="false">https://www.thebluecollarinvestor.com/?p=213835</guid>

					<description><![CDATA[﻿ Rolling up is an exit strategy available to covered call writers when share appreciation occurs. This podcast will analyze and calculate the pros &#038; cons of rolling up a [&#8230;]]]></description>
										<content:encoded><![CDATA[<p><iframe loading="lazy" title="YouTube video player" src="https://www.youtube.com/embed/IKzvGctFPds" width="560" height="315" frameborder="0" allowfullscreen="allowfullscreen"><span style="display: inline-block; width: 0px; overflow: hidden; line-height: 0;" data-mce-type="bookmark" class="mce_SELRES_start">﻿</span><br />
</iframe></p>
<p>Rolling up is an exit strategy available to covered call writers when share appreciation occurs. This podcast will analyze and calculate the pros &#038; cons of rolling up a 6-month covered call trade and make suggestions regarding how to improve an already successful trade.</p>
<p>&nbsp;</p>
<p><b>Free Resources:</b><br />
<a href="https://thebluecollarinvestor.com/minimembership/bci-free-resources/">https://thebluecollarinvestor.com/minimembership/bci-free-resources/</a></p>
<p><b>Premium Membership:</b><br />
⁠<a href="https://thebluecollarinvestor.com/minimembership/premium-membership/">https://thebluecollarinvestor.com/minimembership/premium-membership/</a></p>
<p><b>Best Discounted Packages:</b></p>
<p style="padding-left: 40px;">1. BCI Package, our Best and most Comprehensive Investment package:<br />
⁠<a href="https://thebluecollarinvestor.com/minimembership/bci-investor-program/">https://thebluecollarinvestor.com/minimembership/bci-investor-program/</a></p>
<p style="padding-left: 40px;">2. TCM Package &#8211; BCI Trade Management System:<br />
⁠<a href="https://thebluecollarinvestor.com/minimembership/bci-trade-management-system/">https://thebluecollarinvestor.com/minimembership/bci-trade-management-system/</a></p>
<p style="padding-left: 40px;">3. CEO Package &#8211; Includes TMC Package:<br />
⁠<a href="https://thebluecollarinvestor.com/minimembership/ceo-package/">https://thebluecollarinvestor.com/minimembership/ceo-package/</a></p>
<p style="padding-left: 40px;">4. Credit Spread Management System<br />
<a href="https://www.thebluecollarinvestor.com/the-bci-credit-spread-management-system/">https://www.thebluecollarinvestor.com/the-bci-credit-spread-management-system/</a></p>
<p style="padding-left: 40px;">
]]></content:encoded>
					
					<wfw:commentRss>https://www.thebluecollarinvestor.com/bci-podcast-174-rolling-up-a-covered-call-trade-in-the-same-contract-month/feed/</wfw:commentRss>
			<slash:comments>0</slash:comments>
		
		
			</item>
	</channel>
</rss>
