covering knots in stained wood

You are perfectly correct.

Use B-I-N - it is a great shellac. Only apply this over the knots - not the whole surface - B-I-N is not designed to be a large surface primer.

Once the B-I-N has dried (give it a few hours)- apply your topcoat of stain - and you should be all set!

Mr. Paint

I spoke to the BIN folks directly as I want to cover the knots on my board and batten before I apply a full cover stain (Arborcoat by Benjamin Moore). The said that the stain will not fully penetrate the knots that have had BIN applied which I wondered about; therefore the knots will not be fully covered.

It seems that if I do the full cover stain....it won't fully cover...hence my dilemma - your opinions most welcome.

S

Sorry, but shellac, stain-blocking primer, nor oil prime will last. After as little as a year, the knot's resin will return.
The one and only solution I've been happy with is to first cut out the knot and fill it with the exterior wood filler WoodEpox, manufactured by Abatron. It's expensive, but it's truly durable.