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 examples with NVDA and INTC
· What is an option-chain?
· Real-life examples using the BCI Trade Management Calculator (TMC)
· Introducing the BCI Collar Calculator
· Strategy pros & cons
· Educational products & discount coupon
· Q&A
- Selling cash-secured puts is a conservative optionselling strategy that can generate consistent weekly or monthly income—while providing opportunities to purchase quality stocks at discounted prices
- Whether your objective is generating cash flow, accumulating stock at favorable prices, or enhancing portfolio returns, this presentation will provide a practical, rules-based approach
More Coming Soon!
Have you owned quality stocks in a taxable account for many years? If so, chances are those holdings have appreciated significantly while also providing dividend income. But there is a third potential income stream that many long-term investors overlook—covered call writing.
In this practical, step-by-step presentation, renowned options educator and president of The Blue Collar Investor Corp. Alan Ellman explains how to implement “Portfolio Overwriting”—a powerful covered call strategy.
Specifically, he’ll teach you how to:
- Generate a third income stream from stocks you already own
- Increase portfolio cash flow while maintaining long-term equity ownership
The course is ideal for long-term investors, retirees, and pre-retirees seeking a disciplined, conservative approach to generating additional income from their existing stock portfolios.
*$169 per person if purchased by Sept. 21; $189 after Sept. 21.