Portfolio overwriting is a form of covered call writing where share retention is an additional requirement for the strategy goals. The option Greeks are financial metrics that measure the risk and pricing sensitivity of our option contracts. This article will analyze how the Greeks can assist us by enhancing our portfolio overwriting results. A real-life example with NVDIA Corp. (Nasdaq: NVDA) will be used.

What are the 5 option Greeks?

• Delta
• Gamma- 2nd generation Delta, the “Delta” of “Deltas”
• Theta
• Vega
• Rho- not a major Greek

Delta Defined & Applications

• Delta is the amount an option price will change for every $1.00 change in share price
  • –How to use the 20%/10% exit strategy guidelines
  • –Which strikes to use as stock surrogates (The Poor Man’s Covered Call, for example)
• Delta is the equivalent number of shares represented by the options position
  • –More for high-wealth portfolio managers
  • –Delta-neutral portfolios
• Delta is the percentage likelihood that, upon expiration, the option will expire in-the-money or with intrinsic value (subject to exercise)
  • Portfolio overwriting- avoid exercise of low-cost-basis shares
  • Deep OTM puts- avoid having shares “put” to us
  • Deep ITM calls- avoid stock price dropping below breakeven price point

Theta Defined & Applications

• Estimate of how much the theoretical value of an option will decline with the passage of 1 calendar day
• Assists us in determining when to enter our trades
• Assist us in the most appropriate exit strategies to use
  • 20%/10% BTC-GTC limit orders
  • “Hitting a Double” versus “rolling-down”

Vega Defined & Applications

• Amount an option price changes with a 1% change in implied volatility of the underlying security
• Extremely important to integrate implied volatility into our option trading decisions
• IV can also be used to determine an expected trading range for a specific contract
• Greater implied volatility = larger premiums = greater risk to the downside
• IV is inherent in our option time-value components
• Our initial time-value return goal range can be used to measure the risk of our trades
  • 2% – 4%/month, for me
  • 1/4th that amount for weekly expirations
  • Much lower for portfolio overwriting

How to use Delta for portfolio overwriting: Use low deltas to decrease the risk of exercise (expiring ITM): NVDA option chain

With NVDA trading at $174.88, the $195.00 OTM call strike has a delta (risk of expiring ITM and subject to exercise) of 9.5% (yellow cell) and a bid price of $0.58 (brown cell).

Delta calculations for NVDA (9.5% risk of exercise w/o exit strategies)

• This 25-day trade, shows an annualized return of 4.84% (brown cell) with an opportunity of an additional 11.51% of share appreciation potential (purple cell)
• Calculations accomplished with the BCI Trade Management Calculator (TMC)

How to use Theta for portfolio overwriting: Graphic representation of time-value decay

• The theta (time-value) decay starts slowly (yellow field)
• As expiration approaches, the rate of time-value decay accelerates dramatically (brown field)
• Since we are selling short-term options (weekly and monthly), theta guides us to entering the trades early in the contract cycle

How to use Vega for portfolio overwriting: Can guide us to appropriate strike selection

• Implied volatility (IV) is based on an annualized basis and 1 standard deviation (SD- falls in the calculated range 68% of the time; 16% on the high end and 16% on the low end)
• The high end of the range represents a 16% risk of expiring ITM and subject to exercise
• The BCI Expected Price Movement Calculator has a conversion formula to convert the IV from the annualized stat to one reflecting the specific contract in question
• The price movement is calculated using the at-the-money (ATM) IV
• If we wanted to take less risk of exercise, we could use 2 SDs by doubling the calculated price movement and incur a 2.5% risk of expiring ITM and subject to exercise
• ***We could always buy back the option prior to expiration and prevent exercise if there is substantial share price acceleration

The BCI Expected Price Movement Calculator: NVDA has an ATM IV of 36%

• For a 16% risk factor, we would select a strike near $191.00
• For a 2.5% risk factor (2 SDs), we would double $16.48 and select a strike near $208.00
• Always check the annualized return to make sure it aligns with our pre-stated initial time-value return goal range

Discussion

The option Greeks (mainly, Delta, Theta and Vega) are critical to understanding how best to structure our portfolio overwriting trades. Since these metrics are readily available, we should take advantage of them to create opportunities to elevate our returns to the highest possible levels.

Covered Call Writing Alternative Strategies

Covered call writing is a cash-generating strategy that lowers our cost basis thereby improving our opportunities for successful investments. One of the many benefits of incorporating this strategy into our investment portfolios is that the system can be crafted to meet our trading style, market assessment, portfolio net worth and personal risk tolerance. This book details three such covered call writing-like strategies:

Portfolio Overwriting- using stocks in buy-and-hold portfolios
The Collar Strategy- using protective puts
The Poor Man’s Covered Call- using LEAPS options

Click here to learn more.

Your generous testimonials

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:

From an attorney who hired Alan as an expert consultant & witness in a multi-million-dollar options trial:

Alan,

1. Mad Hedge Investor Summit

Wednesday September 16, 2026

12 PM ET – 1 PM ET

The Collar Strategy: Covered Call Writing with Protective Puts

Protecting covered call trades from catastrophic share loss 

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 split strike conversion strategy, but it was simply a collar. The covered call sets a max gain and the protective put guarantees a maximum loss.

Topics discussed

• What is the collar strategy?
• Uses for the collar
• Entering a collar trade
• Option basics for calls
• Option basics for puts
• Real-life example with NVDA
• What is an option-chain?
• Real-life example using the BCI Trade Management Calculator (TMC)
• Strategy pros & cons
• Event offer
• Q&A

Registration link to follow.

2. Toronto Money Show

September 24 – 25, 2026

MaRS Center, Toronto Canada

Generating a 3rd Income Stream in Existing Stock Portfolios

Details to follow.

3. Orlando Money Show

October 5 – 7, 2026

Hilton Orlando Lake Buena Vista

3 presentations:

• Portfolio Overwriting (2-hour Master Class)
• Setting Up High-Performance Option Portfolios
• Selling Cash-Secured Puts: The 2 Outcomes

Details to follow.

4. American Association of Individual Investors: NYC Chapter

Date and time to be confirmed.

5. Triple Edge Investing Summit: Technical Analysis • Options Strategies • ETF Mastery

Saturday January 23, 2027- All-day event

Zoom presentation

All-day paid event

All-day event hosted by 3 experts:

• Dr. Alan Ellman (options)
• Dr. Eric Wish (technical analysis)
• Les Masonson (ETFs)

Hosted by TraderLion University

Details to follow.

Combining covered call writing and selling cash-secured puts into one multi-tiered option-selling strategy is known as the Put-Call-Put (PCP) or “Wheel” strategy. In this article, a 68-day series of such trades will be analyzed, showing how a 160% annualized return was realized.

Graphic representation of the PCP (Wheel) strategy

• 1: Sell OTM cash-secured puts
• 2: If exercised, by shares at a discount
• 3: Sell covered calls on shares “put” to us
• 4: If exercised and shares are sold, use the cash to secured new put trades

Real-Life Example with Solaris Energy Infrastructure Inc. (NYSE: SEI): Initial put leg + rolling-up

• 1/20/2026: SEI trading at $55.77
• 1/20/2026: STO 2 x 2/20/2026 $42.50 puts at $1.16
• 1/20/2026: STO 2 x 2/20/2026 $37.50 puts at $0.58
• 2/13/2026: SEI trading at $59.50
• 2/13/2026: BTC 2 x 2/20/2026 $42.50 puts at $0.35
• 2/13/2026: STO 2 x 2/20/2026 $52.50 puts at $0.95 (rolled up)
• 2/13/2026: BTC 2 x 2/20/2026 $37.50 puts at $0.08
• 2/13/2026: STO 2 x 2/20/2026 $50.00 puts at $0.50 (rolled up)

Expiration Friday: 2/20/2026

• SEI closed at $49.24
• 4 contracts expiring ITM
• “Allowed exercise”
• History of earnings beats
• Held through 2/24 ER

PCP or Wheel Strategy with SEI: Call leg on 2/25/2026

• STO 4 x 3/20/2026 $60.00 calls at $3.51
• SEI trading at $55.22 (appreciated after the 2/24/2026 earnings release)
• Place a BTC/GTC limit order at $0.70 (20% guideline)
• 3/9/2026: Change BTC/GTC limit order to $0.35 (10% guideline)
• 3/20/2026: SEI closed at $61.81, and exercise and sale of the shares were “allowed”
• 3/23/2026: 400 shares of SEI sold at $60.00

Graphic representation of the 68-day trades

The PCP or Wheel Strategy: Realized results from 1/20/2026 – 3/20/2026

Discussion

Mastering both covered call writing and selling cash-secured puts will provide opportunities for greater returns by invoking the PCP (Wheel) strategy. It results in prospects of generating cash flow as well as buying shares at a discount. In this real-life example, an annualized 160% return was realized.

Selling Cash-Secured Puts: Softcover

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.

Click here to learn more.

Your generous testimonials

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:

From an attorney who hired Alan as an expert consultant & witness in a multi-million-dollar options trial:

Alan,

1. Mad Hedge Investor Summit

Wednesday September 16, 2026

12 PM ET – 1 PM ET

The Collar Strategy: Covered Call Writing with Protective Puts

Protecting covered call trades from catastrophic share loss 

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 split strike conversion strategy, but it was simply a collar. The covered call sets a max gain and the protective put guarantees a maximum loss.

Topics discussed

• What is the collar strategy?
• Uses for the collar
• Entering a collar trade
• Option basics for calls
• Option basics for puts
• Real-life example with NVDA
• What is an option-chain?
• Real-life example using the BCI Trade Management Calculator (TMC)
• Strategy pros & cons
• Event offer
• Q&A

Registration link to follow.

2. Toronto Money Show

September 24 – 25, 2026

MaRS Center, Toronto Canada

Generating a 3rd Income Stream in Existing Stock Portfolios

Details to follow.

3. Orlando Money Show

October 5 – 7, 2026

Hilton Orlando Lake Buena Vista

3 presentations:

• Portfolio Overwriting (2-hour Master Class)
• Setting Up High-Performance Option Portfolios
• Selling Cash-Secured Puts: The 2 Outcomes

Details to follow.

4. American Association of Individual Investors: NYC Chapter

Date and time to be confirmed.

5. Triple Edge Investing Summit: Technical Analysis • Options Strategies • ETF Mastery

Saturday January 23, 2027- All-day event

Zoom presentation

All-day paid event

All-day event hosted by 3 experts:

• Dr. Alan Ellman (options)
• Dr. Eric Wish (technical analysis)
• Les Masonson (ETFs)

Hosted by TraderLion University

Details to follow.

The Poor Man’s Covered Call (PMCC) is a covered call writing-like strategy where deep in-the-money LEAPS options (1–2-year expirations) are purchased and short-term out-of-the-calls are sold against the long calls. It is a low-cost way to enter a covered call trade, but it is so much more than simply “covered call writing, but cheaper”.

Technical term

• Long call diagonal debit spread
• Simultaneous purchase and sale of an equal number of call contracts on the same stock but with different strikes and expiration dates
• Goal is to generate income as we reduce the cost-basis

Pros & Cons of the PMCC

***Screenshot from the book, Covered Call Writing Alternative Strategies.

Real-Life Example: Intel Corp. (NASDAQ: INTC): $43.34 on 3/9/2026:

Buy the $37.00 1/21/2028 LEAPS at $17.85

INTC: Short Call Selection

 STO 4/10/2026 $55.00 call at $0.58

INTC Calculations with the BCI PMCC Calculator

• The red bold “YES” means that, if the trade is closed early due to significant share price appreciation, it will be closed at a profit
• The initial 32-day return is 3.25%, 65.32% annualized
• The upside potential is 68.57%
• The max annualized return is 782.14%
• The breakeven price is $54.27
• The max loss is $17.27

Discussion

• The PMCC is a covered call writing-like strategy with pros and cons
• Must master all the “moving parts” and then decide if this is an appropriate strategy for our goals and personal risk-tolerances
• Like traditional covered call writing, mastering the 3-required skills (stock selection, option selection & position management) is essential to generate the highest long-term returns

Stock Investing for Students: A Plan to Get Rich Slowly and Retire Young

Self-investing starting at a young age can ensure a successful financial future and an early and comfortable retirement. So why is nobody doing this? The answer includes such factors as the social pressures facing our youth, certain pre-conceived ideas regarding our ability to successfully self-invest and the education or lack thereof needed to motivate our youth to undertake such a long-term project.

Learn more.

Your generous testimonials

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:

Alan,

1. MoneyShow Masters Symposium Las Vegas

Tuesday July 21, 2026

Caesars Palace Hotel, Las Vegas

Title: The Put-Call-Put (PCP) or Wheel Strategy

Subtitle: Generating cash flow & buying shares at a discount using covered call writing and cash-secured puts 

Description:

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 stock at a discount. I refer to this as the Put-Call-Put (PCP) Strategy, also referred to as the wheel strategy.

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.

 Register here.

2. Mad Hedge Investor Summit

Wednesday September 16, 2026

12 PM ET – 1 PM ET

The Collar Strategy: Covered Call Writing with Protective Puts

Protecting covered call trades from catastrophic share loss 

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 split strike conversion strategy, but it was simply a collar. The covered call sets a max gain and the protective put guarantees a maximum loss.

Topics discussed

• What is the collar strategy?
• Uses for the collar
• Entering a collar trade
• Option basics for calls
• Option basics for puts
• Real-life example with NVDA
• What is an option-chain?
• Real-life example using the BCI Trade Management Calculator (TMC)
• Strategy pros & cons
• Event offer
• Q&A

Registration link to follow.

3. Toronto Money Show

September 24 – 25, 2026

MaRS Center, Toronto Canada

4. Orlando Money Show

October 5 – 7, 2026

Hilton Orlando Lake Buena Vista

Details to follow.

5. American Association of Individual Investors: NYC Chapter

Date and time to be confirmed.

6. Triple Edge Investing Summit: Technical Analysis • Options Strategies • ETF Mastery

Saturday January 23, 2027- All-day event

Zoom presentation

All-day paid event

All-day event hosted by 3 experts:

• Dr. Alan Ellman (options)
• Dr. Eric Wish (technical analysis)
• Les Masonson (ETFs)

Hosted by TraderLion University

Details to follow.

When we roll our covered call options forward, we can roll-out to an in-the-money, at-the-money or out-of-the-money strike. Real-life examples using QQQQ will be detailed for rolling-out and rolling-out-and-up.

The “What Now” worksheet tab of the BCI Trade Management Calculator (TMC) is used to demonstrate these calculations which help guide us to oiur best trade decisions.

Free Resources:
https://thebluecollarinvestor.com/minimembership/bci-free-resources/

Premium Membership:
⁠https://thebluecollarinvestor.com/minimembership/premium-membership/

Best Discounted Packages:

1. BCI Package, our Best and most Comprehensive Investment package:
⁠https://thebluecollarinvestor.com/minimembership/bci-investor-program/

2. TCM Package – BCI Trade Management System:
⁠https://thebluecollarinvestor.com/minimembership/bci-trade-management-system/

3. CEO Package – Includes TMC Package:
⁠https://thebluecollarinvestor.com/minimembership/ceo-package/

4. Credit Spread Management System
https://www.thebluecollarinvestor.com/the-bci-credit-spread-management-system/

]]> https://www.thebluecollarinvestor.com/bci-podcast-176-rolling-out-and-up-to-itm-and-otm-call-strikes-2/feed/ 0 https://www.thebluecollarinvestor.com/rolling-up-4-cash-secured-put-contracts-debunking-an-option-myth/ https://www.thebluecollarinvestor.com/rolling-up-4-cash-secured-put-contracts-debunking-an-option-myth/#comments Sat, 11 Jul 2026 11:03:45 +0000 https://www.thebluecollarinvestor.com/?p=213589

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

Real-life example with Solaris Energy Infrastructure Inc. (NYSE: SEI)

• 1/20/2026: SEI trading at $55.77
• 1/20/2026: STO 2 x 2/20/2026 $42.50 puts at $1.16
• 1/20/2026: STO 2 x 2/20/2026 $37.50 puts at $0.58
• 2/13/2026: SEI trading at $59.50
• 2/13/2026: BTC 2 x 2/20/2026 $42.50 puts at $0.35
• 2/13/2026: STO 2 x 2/20/2026 $52.50 puts at $0.95 (rolled up)
• 2/13/2026: BTC 2 x 2/20/2026 $37.50 puts at $0.08
• 2/13/2026: STO 2 x 2/20/2026 $50.00 puts at $0.50 (rolled up)

Comparison chart of SEI with the S&P 500 prior to and during the put trades

Initial calculations prior to rolling up: The BCI Trade Management Calculator (TMC)

Both puts offered significant initial returns (brown & pink cells) as well as substantial protection to breakeven (purple & blue cells). The initial cash generated, $348.00 (green circle), was guaranteed as long as SEI remained above the associated strike prices.

Brokerage confirmation of the roll up trades

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.

Discussion

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 cash-secured put trades is the original put premium only.

Trade update

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 >120% realized annualized return for the 2-months of option-selling.

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.

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.

Learn more here.

Your generous testimonials

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:

Hi Alan,

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.

Thank you.

Andrew

1. MoneyShow Masters Symposium Las Vegas

Tuesday July 21, 2026

Caesars Palace Hotel, Las Vegas

Title: The Put-Call-Put (PCP) or Wheel Strategy

Subtitle: Generating cash flow & buying shares at a discount using covered call writing and cash-secured puts 

Description:

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 stock at a discount. I refer to this as the Put-Call-Put (PCP) Strategy, also referred to as the wheel strategy.

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.

 Register here.

2. Mad Hedge Investor Summit

Wednesday September 16, 2026

12 PM ET – 1 PM ET

The Collar Strategy: Covered Call Writing with Protective Puts

Protecting covered call trades from catastrophic share loss 

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 split strike conversion strategy, but it was simply a collar. The covered call sets a max gain and the protective put guarantees a maximum loss.

Topics discussed

• What is the collar strategy?
• Uses for the collar
• Entering a collar trade
• Option basics for calls
• Option basics for puts
• Real-life example with NVDA
• What is an option-chain?
• Real-life example using the BCI Trade Management Calculator (TMC)
• Strategy pros & cons
• Event offer
• Q&A

Registration link to follow.

3. Toronto Money Show

September 24 – 25, 2026

MaRS Center, Toronto Canada

4. Orlando Money Show

October 5 – 7, 2026

Hilton Orlando Lake Buena Vista

Details to follow.

5. American Association of Individual Investors: NYC Chapter

Date and time to be confirmed.

6. Triple Edge Investing Summit: Technical Analysis • Options Strategies • ETF Mastery

Saturday January 23, 2027- All-day event

Zoom presentation

All-day paid event

All-day event hosted by 3 experts:

• Dr. Alan Ellman (options)
• Dr. Eric Wish (technical analysis)
• Les Masonson (ETFs)

Hosted by TraderLion University

Details to follow.

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 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’re trading 5 contracts, we lock in a $425 loss (500 shares X $0.85).

Do I have this right or is there something I’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?

Thanks,

John

Free Resources:
https://thebluecollarinvestor.com/minimembership/bci-free-resources/

Premium Membership:
⁠https://thebluecollarinvestor.com/minimembership/premium-membership/

Best Discounted Packages:

1. BCI Package, our Best and most Comprehensive Investment package:
⁠https://thebluecollarinvestor.com/minimembership/bci-investor-program/

2. TCM Package – BCI Trade Management System:
⁠https://thebluecollarinvestor.com/minimembership/bci-trade-management-system/

3. CEO Package – Includes TMC Package:
⁠https://thebluecollarinvestor.com/minimembership/ceo-package/

4. Credit Spread Management System
https://www.thebluecollarinvestor.com/the-bci-credit-spread-management-system/

More Videos:

• For those new to Alan’s system of Covered Call Writing, be sure to take the Free Beginners Corner Series
• Free Training Videos Archive
• Ask Alan Video Q & A Archive
• Subscribe to our YouTube Channel

To enter your questions to “Ask Alan”, fill out the form on the contact page. Be sure to begin your message with “ASK ALAN”

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

% initial put return = [(put premium/ (put strike – put premium)]

When trade adjustment opportunities (exit strategies) are implemented, the accurate archiving and calculations of the trades can be somewhat challenging. Enter the BCI Trade Management Calculator (TMC). 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.

Real-life example with HWM 

• 1/22/2026: HWM trading at $221.00
• 1/22/2026: STO 1 x 1/30/2026 $210.00 put at $1.49 (9-day trade)
• 1/30/2026: HWM trading at $208.08, leaving the $210.00 strike now ITM
• 1/30/2026: BTC the 1/30/2026 $210.00 put strike at $2.00
• 1/30/2026: STO 1 x 2/6/2026 $207.50 put strike at $3.49 (roll-down)
• 2/6/2026: The $207.50 strike remains OTM and is closed at $0.04

Implementing the Trade Management Calculator (TMC) with Multiple Expiration Dates

The TMC can be utilized in a myriad of ways. Here’s how I do it:

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 & 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.

TMC Spreadsheet for the 1/30/2026 Expiration

• Red circle: This is a 9-day trade if taken through contract expiration
• Yellow cell: The breakeven price point (BE) is $208.51
• Brown cells: The initial 9-day return is 0.71%, 28.98% annualized
• 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)
• Pink cells: After closing the option at $2.00, there is a net option loss of $51.00 or 0.24%

TMC Spreadsheet for the 2/6/2026 Expiration: HWM closes at $222.60

• Red circle: This is an 8-day trade if taken through contract expiration
• Yellow cell: The breakeven price point (BE) is $204.01
• Brown cells: The initial 8-day return is 1.71%, 78.05% annualized
• 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)
• Green cells: After closing the option at $0.04, there is a net option gain of $345.00 or 1.69%
• 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

Final Combined 16-Day Returns

• Net credit = $345.00 – $51.00 = $294
• Cost basis: $210.00 – $1.49 = $208.51
• % 16-day return = 1.41%
• Annualized return = 32.17%
• 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

Discussion

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 BCI Trade Management Calculator (TMC), calculates initial returns, allows for trade adjustments and is a fantastic learning tool

The New BCI Credit Spread Management System

6-Tab calculator with context-sensitive help and the new BCI book, “The Blue Collar Investor Guide to Conservative Credit Spread Trading”

Click here for more.

Your generous testimonials

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:

1. MoneyShow Masters Symposium Las Vegas

Tuesday July 21, 2026

Caesars Palace Hotel, Las Vegas

Title: The Put-Call-Put (PCP) or Wheel Strategy

Subtitle: Generating cash flow & buying shares at a discount using covered call writing and cash-secured puts 

Description:

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 stock at a discount. I refer to this as the Put-Call-Put (PCP) Strategy, also referred to as the wheel strategy.

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.

 Register here.

2. Mad Hedge Investor Summit

Wednesday September 16, 2026

12 PM ET – 1 PM ET

The Collar Strategy: Covered Call Writing with Protective Puts

Protecting covered call trades from catastrophic share loss 

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 split strike conversion strategy, but it was simply a collar. The covered call sets a max gain and the protective put guarantees a maximum loss.

Topics discussed

• What is the collar strategy?
• Uses for the collar
• Entering a collar trade
• Option basics for calls
• Option basics for puts
• Real-life example with NVDA
• What is an option-chain?
• Real-life example using the BCI Trade Management Calculator (TMC)
• Strategy pros & cons
• Event offer
• Q&A

Registration link to follow.

3. Toronto Money Show

September 24 – 25, 2026

MaRS Center, Toronto Canada

4. Orlando Money Show

October 5 – 7, 2026

Hilton Orlando Lake Buena Vista

Details to follow.

5. American Association of Individual Investors: NYC Chapter

Date and time to be confirmed.

6. Triple Edge Investing Summit: Technical Analysis • Options Strategies • ETF Mastery

Saturday January 23, 2027

Zoom presentation

All-day paid event

All-day event hosted by 3 experts:

• Dr. Alan Ellman (options)
• Dr. Eric Wish (technical analysis)
• Les Masonson (ETFs)

Hosted by TraderLion University

Details to follow.

Begin additional segments text here (like testimonials, events, etc.)