Enhancing Gains with the Mid-Contract Unwind Exit Strategy: The BCI Trade Management Calculator in Action + Free Webinar Registration Link


After entering our covered call trades and share price rises substantially, there are often opportunities to generate a 2nd inc0me stream by closing both legs of the original trade and entering a new one with a different underlying security. In the BCI methodology, this is known as the Mid-Contract Unwind (MCU) exit strategy. This article will highlight an example of this strategy using Nucor Corp. (NYSE: NUE). The BCI Trade Management Calculator will show trade entry, initial calculations, trade adjustments and final results.


MCU trade overview

  • 7/25/2021: Buy 100 x NUE at $96.87
  • 7/25/2021: STO the 8/20/2021 $95.00 ITM call at $4.90
  • 8/6/2021: BTC the 8/20/2021 $95.00 call at $9.70
  • 8/6/2021: Sell 100 x NUE at $104.28
  • 8/6/2021: With 14 days remaining to contract expiration, the cash available from selling the NUE shares is now available for a 2nd income stream in the same contract cycle


BCI Trade Management Calculator: NUE trade entry


NUE: Initial Trade Entries


BCI Trade Management Calculator: NUE initial calculations


NUE: Initial Covered Call Calculations


The spreadsheet shows an initial time-value return of 3.20%. Since the option sold was in-the-money, no additional profit can be gleaned from share appreciation.


BCI Trade Management Calculator: NUE adjustment entries


NUE: MCU Trade Adjustment Entries


BCI Trade Management Calculator: NUE final results


NUE: Final Returns After Trade Adjustments

The final trade result after trade adjustments is 2.75%



The MCU exit strategy resulted in a time-value cost-to-close of 0.45% (3.20% – 2.75%). We use this exit strategy when we can generate at least 1% more than this time-value cost-to-close or 1.45% or higher, thereby initiating a 2nd income stream with a similar cash investment. Note that we must have cash available in our portfolios to close our short option positions when exit strategy opportunities are available.


Information on the BCI Trade Management Calculator


Premium membership video updated with all benefits


Your generous testimonials

Over the years, the BCI community has been incredibly gracious by sending our BCI teaemail testimonials sharing stories as to what our educational content has meant to their families. Moving forward, we have decided to share some of these testimonials in our blog articles. We will never use a last name unless given permission:

Dear Alan,

I have bought a lot of different items … books, calculators etc. from you and your fine organization … learned a lot. In my opinion, you’re the best in the business … congratulations.



Upcoming events

1. Wealth365 Summit

Tuesday July 12th, 2022

4 PM ET – 5 PM ET

Selling Cash-Secured Puts 

Exit Strategy Choices After Exercise of Cash-Secured Puts 

Selling cash-secured puts is a low-risk option-selling strategy which generates weekly or monthly cash flow by agreeing to buy shares at a price we determine, by a date we determine. In return for undertaking this obligation, we are paid a cash premium. We only sell puts on shares we would otherwise want to own and, if exercised, and shares are put to us, they are purchased at a discount from the price when the put trade was initiated.

This presentation includes an introduction to option basics, defines selling cash-secured puts and provides real-life examples. The focus of the webinar details the steps available to put sellers should the put be exercised, and we now own the discounted stock or ETF shares. The seminar includes a discussion of the PCP (put-call-put or wheel) Strategy and the Stock Repair Strategy among other exit strategy opportunities.

Register for free here


2. Money Show Orlando live event

October 30th – November 1st, 2022


Visit Alan, Barry and members of the BCI team at Booth # 415

Masters Class

Comprehensive Course on Selling Cash-Secured Puts

Detailed start-to-finish 6-part program

This presentation will provide all the information, with real-life examples, necessary to master the strategy of selling cash-secured puts. The program is divided into 6 sections:

  • Section I:
  • Section II
  • Section III
  • Section IV
  • Section V
    • Ultra-low-risk put/Delta strategy
  • Section VI

This presentation was developed to benefit both beginner and experienced option traders and will provide all the information needed to initiate the strategy and elevate returns to the highest possible levels.

45-minute presentation

Covered Call Writing: Multiple Applications Based on Current Market Conditions

Real-life examples with Invesco QQQ Trust (Nasdaq: QQQ)

Covered call writing is a low-risk option-selling strategy geared to generating cash flow with capital preservation a key requirement. This presentation will demonstrate how the strategy can be crafted to benefit in all market environments. Market situations highlighted are:

  • Normal to bull markets
  • Bear and volatile markets
  • Low interest-rate environments

A popular large-cap technology exchange-traded fund, Invesco QQQ Trust, will be used to establish rules and guidelines to benefit in these market circumstances.

Registration link and more details to follow.


Alan speaking at a Money Show event


Market tone data is now located on page 1 of our premium member stock reports and page 1 of our mid-week ETF reports.



Image and article originally from www.thebluecollarinvestor.com. Read the original article here.