Are We In The Early Stages Of A Social Media Tech Bubble?

tech bubble

What’s up with all these social media companies filling for IPO’s lately? I guess the spark was lit with LinkedIn which went public just 2 weeks ago now. Since 2 other major social media tech companies have filed the paperwork for additional IPO’s – both Groupon and now Zynga. Coming Social Media Bubble? I hate…

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Are Wealthy Investors Always The Most Intelligent Investors?

Pretty heavy question here, but one that needs to be asked…Are wealthy or rich investors always the smartest or most intelligent investors? With the likes of Bernie Madoff these days who have wrecked lives, it would be hard to quickly answer YES. Sure it depends on what we are talking about here. I mean you…

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How Can A Call Option Decline In Value When A Stock Rises?

call option

I’m sure we have all traded a call option that declined in value when the stock was on the rise. I know I have done it many times before I started focusing mostly on option selling strategies. We all know that stocks and options are completely different investment vehicles. What’s hard about the question above is…

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Rebalancing Your Portfolio To Control Risk Exposure

rebalancing

Rebalancing your portfolio and adjusting it for risk and reward can be a daunting task for some traders. As with most things in trading, sometimes it just simply looks harder. To start there are many schools of thought with regard to rebalancing and allocating a portfolio – none of which are correct since they are…

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13 Stock Chart Patterns That You Can’t Afford To Forget

stock chart patterns

Stock chart patterns play an important role in any useful technical analysis and can be a powerful asset for any trader at any level. We all love patterns and naturally look for them in everything we do, that’s just part of human nature and using stock chart patterns is an essential part of your trading…

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Stock Price Gaps – Why The Happen And How To Trade Them

stock price gaps

Beginning traders were probably shocked the first time they experienced a stock price gap. I guess even the most experienced traders still get taken back when there is an unexpected stock price gap in a stock they are trading. Either way I wanted to cover once again why they happen and what you can do…

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Time To Dispel The Stupid Myth Of ‘Unlimited Losses’ In Naked Option Selling

naked option selling

I’m an option seller and I think we get a bad rap. When people first hear about naked option selling and option writing they immediately heard about “unlimited losses” and “unlimited risk”. This ignorance and lack of understanding is frustrating to say the least. It’s high time we bring this myth to an end! Frankly…

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19 Famous Quotes From Great Investors That You Can Still Rely On Today

famous investor quotes

I love reading trading books and learning from some of the great investors and traders. My personal preference is to learn from the “Old Guys” like Livermore, Buffett, Lynch and Graham. These guys laid the foundation for modern investing. They didn’t trade on technicals and always offer great insight. Here are 19 great quotes. Add…

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How To Correctly Use Beta When Building And Managing Your Portfolio

what is beta

Beta is a great trading and portfolio tool when used correctly – yes some people don’t use it correctly I’m afraid. Beta is another one of those crazy greeks that determines the association of a stock or a portfolio to overall markets. This is something that I haven’t covered in detail before and I apologize for…

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Warren Buffett’s Portfolio – Shocking Truth About How He Trades Options

warren buffetts portfolio

I’ve told people for years and years that Warren Buffett’s portfolio and Berkshire Hathaway company publicly discloses that they are naked put option sellers. More specifically they sell index put options, the exact same strategy we use here at Option Alpha. Why Is This So Shocking? Honestly I always get a weird response when I…

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