Exit Strategies for Covered Call Writing

[BlueCollarInvestor]

Your comment is much appreciated. Thanks for taking the time.

[rambetter]

Alan I love your videos, thanks a lot.

[BlueCollarInvestor]

CC writing is not for everyone. It is a conservative strategy that requires a learning and time commitment. I never tell anyone what to do, but rather what I am doing. It has led to my financial freedom. Those interested should educate themselves and decide. Our gov't allows us to use this strategy in IRA accounts and that speaks louder than any comments posted here. I thank those who made constructive comments but will not address or delete those that are mean-spirited. Alan

[1509dyna]

I couldn't disagree more with davecir123. I have been a premium member with Alan for a month and I have been following him for a couple. I have learned a ton from him and have made more money from his education than you would believe. I naturally learn from numerous other sources but find that Alan and I have the same conservative approach. The web has many crooks but Alan is not one of them. Phil

[rlpitts52]

Hi Alan,

I am just starting to educate myself on options , covered calls, etc.. I must say I find your videos very informative. I just retired from the City of Atlanta's IT department and I am expecting a significant sum of money in a few weeks.

I would like to test / simulate your strategy to learn more before I move into live trading. Any thoughts on how to accomplish this?

Take care and keep up the good work....

Rockie

[pravben]

Hi,

Research a lot befoe plunge in. Because there is more money made in Covered Call Education than money actually made by these so called Gurus. Become a CC Educator like Allan and make money. If I truly make a lot of money in CC I would not try to sell my book/tools via pathetic youtube post. That should raise the alarm bell. Even look at his example, it is so pathetic. Stec crashed overnight from 22 to 12.75 last week. That is almost $10. Money is in education not in trading.

[davecir123]

save your money and your retirement! this man is here to fatten his wallet on newbies by selling his book and dvd's for ridiculous amounts of money for the most simple strategy out there. educate yourself for free by searching for all the free stuff out on the 'net.  for a normal person seeing his videos, alarm bells should be ringing! this guy is out to take money away from the dreamers, don't be a dreamer.

[2R1P]

I am gonna take Alans side here and i don't know him and have never spoke with him. Covered call writing is a very low risk way to make money. I personally like to collar my trades with a leap put. Alan would probably say that kills alot of my profit, but i like the idea of limited risk. However i don't think people should disgard his product. I myself am gonna buy his book. Maybe not the cd's yet but atleast the book. For $25 this seems well worth it to anyone serious about trading

[BlueCollarInvestor]

Covered call writing caught my attention 10 years ago when I learned that the government considers this strategy so safe, it allows you to use it in your self-directed IRAs.

I have worked on perfecting cc writing via education and intelliegnt, non-emotional decisions. It has changed my life!

Only you can decide if this strategy is right for you, not me or anyone else.

[davecir123]

Yes, hitting a triple is rare, so you do this consistantly? I doubt it.  This is a strike out stategy!! LOOK AT THE RISK GRAPH! People watching this video, save your money, if you want to learn how to trade options there's plenty of free education online, start with this question, 'how much money could I lose?' and learn to manage your risk.

[BlueCollarInvestor]

When a stocks market value is priced above the strike, I view it as downside protection of my option premium. Buying back the option and selling the stock will result in a loss of income due to the time value of the buy-to-close premium and commissions.

[shutterpointer]

Thats a great way to make money. However, if the stock in priced above the heavy volume strike price its might be a signal to execute the option and sell the stock too.