ALAN ELLMANN GAVE A PRESENTATION TO OVER 120 MEMBERS OF OUR EASTERN MICHIGAN AAII CHAPTER ON 4/23/2020. TO SAY THAT IT WAS EXCEPTIONAL WOULD BE AN UNDERSTATEMENT. I HEARD FROM MANY ATTENDEES THAT “’ IT WAS THE BEST PRESENTATION ON COVERED CALLS THEY HAD EVER SEEN.” THE SLIDES WERE EASY TO FOLLOW. THERE WERE EXAMPLES OF WHAT STOCK TO CHOOSE, WHEN AND ALL THE NECESSARY INFO TO MAKE ONE A SUCCESSFUL INVESTOR. WHY YOU USE A STOCK RATHER THAN AN ETF AND MORE. A VERITABLE WEALTH OF ACTIONABLE INFORMATION. I HAVE NEVER USED OPTIONS AND SPECIFICALLY COVERED CALLS, BUT I AM INCLINED TO USE THEM AFTER THIS PRESENTATION. A WINNER IN MY BOOK. !!
First of all, Thank you!
I believe you have proposed and elaborated a way for a normal person (such as myself) a way of taking over and making my own way in this confused world (possibly made difficult on purpose?).
I have tinkered w/ Covered Calls w/ other information, and yet did not feel confident. I have ordered one of your books, and moving slowly, but am about ready to step away at 63 from working for a major Telco, but only because I have the means (several 100K of 401k) and the knowledge (assisted by you and Barry) to make my wife’s and my dream a reality.
I am not greedy, 2% is all I need. Anything additional is going first to the “bank” and then to charity as I get more confident. I have already saved several $$ as I have learned your exit strategies. What I find most encouraging is your matter of fact approach. It is quite well done.
thanks to you. So far I am at the “dangerous novice” stage, but am growing quickly!
Hello Dr. Ellman,
An update for you…
I switched from TDAmeritrade to Schwab this summer – early July. StreetSmart Edge has proven to be much easier to use than Think or Swim for me at least. In one month with an account just south of $200.000.00 and most of it tied up in other investments at that(!), we are up over 14%.
Your “common sense” leg has proven to be invaluable; watching out for earnings dates – irreplaceable; and getting to know the stocks you are in – wise.
AAPL, WTW, SRPT, MU have been workhorses in this success. Except…AAPL has not been with CCW. I have one $200 strike for October (for premium) that is now ITM, but I let the other 100 shares uncovered. With earnings coming up, I thought it would be better to ride it out – although I did buy an inexpensive Put for some insurance.
I’m learning by doing, but you have given me wonderful tools to use and I am grateful.
Bless you, sir.
Thank you so much
to sell on another stock, Trade had 0 open interest and yet its ask-bid spread was terrific! nevertheless, I didn’t dare to violate the open interest rules. So thinking that things would settle down Tuesday, I decided to wait till today to sell most of my contracts (even though I had bought all the 5 stocks on Monday). That presents me with a question regarding the cost basis for the option calculations in the Ellman calculator. Because I sold the contracts on a different day than when I bought the stocks. I don’t know if that is a problem in your mind? My broker, Vanguard doesn’t have the option of buy-write for us or at least I haven’t seen it.
In any event I entered my positions today and I am very hopeful that I can be successful in this. Your BCI methodology is so intelligent and scientific (I hope you don’t mind me saying this) and it gives us the blue collar investors the tools to succeed. I realize that nobody can predict the stock market but with your methodology we have the science to make intelligent decisions. I look forward to reading your book the classic edition of the Encyclopedia.
Thank you again for your responses, I certainly appreciate the correspondence.
When Rolling the short call in a PMCC are you required to adhere to the same rules you apply when initially structuring the trade, namely that the difference in the strikes plus the short premium must be greater than the cost of the LEAPS, and also that the EV of the short call must be greater than that of the LEAPS?
By the way, I have absent from the fold for a couple a years pursuing other options pipe-dreams. The only thing I’ve learned is that there are no other option strategies that are as dependable as those that you and your BCI team advocate. And there is no better educator on all this option stuff than you.
Dear Dr. Alan,
My son’s, John, and my impressions from attending your presentation are: You are a genius and honest man. Thank you very much. If you visit San Diego, please let’s know. We will welcome you. We’ll purchase the whole package.
Good morning Alan,
My name is FRANCESCO GUERINI, italian national, living in the UAE, commercial airline pilot, 34 years old.
I have been following your blogs and videos for some time and I have been really really impressed, thank you so much for your work! The feedback I have seen on BCI is truly amazing!
I have a basic understanding of options and strategies thanks to Tastytrade, I have an account at Tastyworks already funded (about 200K $ in it).
I would like to get started on your covered call and cash secured puts writing strategy on that account.
What books/videos/dvds would you recommend from your vast and comprehensive library? (I’d prefer mostly ebooks if possible due to the worldwide travelling nature of my job)
Since I live outside the US I would like to order everything I need in one go so I can ship them to the UAE to lower my shipping costs associated to the purchase.
Thank you very much for your kind help, it would be a honour to meet you some day!
I have just become a BCI investor. 2 weeks ago I purchased the stock TEAM and sold an Apr 18th call. At the time there was no earnings report date set. In the the last newsletter TEAM has an earnings report due on the 18th Apr.
Does the BCI methodology recommend immediately closing the position or is it ok to hold until the day before the earnings report is due. I was thinking that I would hold the position open until 1 day before the report date.
My first month using BCI has been awesome. I have already generated $2300 in selling calls and currently have $1600 in stock appreciation. I am trading with $53000, so the returns are amazing. This more than covers the subscription cost for the year. I have been trading for 15 years and your methodology is by far the best I have seen.
Thank you so much for your response! I have benefitted greatly from your training. I have been steadily increasing my efforts and knowledge in this approach since 2015, and it is truly a viable long term retirement strategy. I will continue to be your student!
It’s been a while since we talked, but I have to say you are one of the few people in my later life that have helped this retired dentist enjoying his retirement. Writing calls on good stocks in my portfolio has allowed me to
A weekly income around $2000/ weekly. Sometimes more! I’m conservative but the BCI guidelines and how you’ve laid the groundwork have helped immensely.
Thank you my brother, and God Bless!
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