We’ve made it through another quarter in the market. To be honest, I can’t wait for this quarter to be over as it’s been nothing but boring. From start to finish stocks have traded completely sideways. Let’s hope that the summer month kick off some changes in the market. I decided to change things up ...…
Other investors sell puts in order to collect a premium. This person is much like the insurance underwriter. He is not expecting the stock to take a plunge, but is expecting the stock to rise in price or at least retain its current value. Stock XYZ is trading a $47.50 the investor sells a $45 ...…
Another important use for put options is insurance on stocks that you own. If you own a stock and you have a forecast that the stock may fall, you can purchase a put option to help as protection against the decline. If the stock does fall, then the option goes up in value and offsets ...…
For those investors holding a portfolio of mixed stocks who have unrealized profits to protect, an index collar might be an appropriate strategy to consider. Purchasing index put options with a given strike price for downside protection can, at least in part, be financed by the simultaneous sale of the same number of calls with ...…
For those who expect a move up or down in an underlying index over a given timeframe, buying an index straddle might be an appropriate strategy to consider. If expectations of an index move come true, an investor is positioned to profit on either the upside by owning a call or the downside by owning ...…
Make no mistake, the 4th of July is my favorite holiday. Call me crazy but there is something about the whole spirit of American Independence that gives me the chills. Our family has big plans as usual and I hope everyone else out there does too! Now, given that we are knee deep into the ...…
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Well, that was completely a wasteful day in the markets. I mean we did nothing as far as any significant movements. I’m sure you all felt the same way by mid-day and decided to go out and enjoy the wonderful day – at least that’s what I did with my family. Regarding the post headline. ...…
When the futures markets kicked off the morning they were rallying hard. The /ES was up to 908 literally in the blink of an eye. Now however, following some very weak jobs numbers, they have fallen out of bed – the /ES is now trading at 892! Talk about a huge reversal in sentiment within ...…
Huh? Futures opened higher before the bell, followed by a mini-crash at the open, and now we are trading higher by 1%+ on the day? Doesn’t make any sense really at all – check out the chart below with today’s action in blue. Honestly, I think this is just another fake-out and manipulation by some of ...…
Another Fed day is here and ready to shake the markets after Uncle Ben speaks. Typically investors and traders alike will wait for the decision at 2:15 EST – but futures rallied early following some durable-goods data. We also have some fairly important data on New Home Sales coming out today earlier on. These two big components ...…
Options writing and option spreads can play a critical role in any portfolio looking to reduce risk. Even if you only commit a small amount of capital to our strategy, options can smooth out your returns and reduce the volatility of your overall portfolio. For example, let’s take any three-month period where the NASDAQ lost 3% of its value. If you had ...…
You have come to the right place if you want to generate monthly income - that’s what we are all about. As our Strategy page explains, the goal of our strategy isn’t to hit home-runs every time we trade – instead, we make a lot of base hits that add up and compound over time. This is ...…
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