Stocks

Ask Alan 227: How Do I Enter 2 Covered Call Exit Strategies into the Trade Management Calculator?

Byaea2ede5_admin February 12, 2025

———-
In this video, Alan Ellman reviews multiple covered call trades and demonstrates how to enter them into the Trade Management Calculator (TMC). He discusses Jim’s scenario of rolling down from a 55 to a 50 call on STNG stocks, including buy-sell strategies and the final results despite a drop in stock price. The video emphasizes the importance of correctly entering trades and calculating final returns. Alan also highlights the educational resources available for mastering covered calls and other option selling strategies.

Key Points:

Rolling down covered calls
Alan explains how Jim successfully rolled down his covered call option from a $55 strike to a $50 strike while managing his STNG stock. By doing this, Jim was able to generate additional cash into his portfolio, which is an essential strategy when stock prices decline.

Use of the Trade Management Calculator
The video walks through how to accurately enter and manage trades in the Trade Management Calculator. Alan details how to integrate various exit strategies seamlessly within the TMC, even when multiple adjustments are made to a single trade.

Final trade results
Despite a significant drop in the stock price (from $53 to $49.60), Jim ended up with a slight profit (a return of 0.85%) due to the covered call strategies employed. This outcome demonstrates that with effective option-selling strategies, traders can mitigate losses and create profits even in adverse market conditions.

Educational resources offered
Alan concludes the video by promoting various educational packages that include comprehensive training on covered calls and cash-secured puts. These packages offer tools such as spreadsheets, online courses, and eBooks designed to aid investors in mastering the BCI methodology.

Links mentioned in the video:

Best BCI Package:
https://thebluecollarinvestor.com/minimembership/bci-investor-program/

The trade management system:
https://thebluecollarinvestor.com/minimembership/bci-trade-management-system/

The CEO Package:
https://thebluecollarinvestor.com/minimembership/ceo-package/

FIND BCI ON AMAZON
https://amzn.to/Nx2Zqk