The Blue Collar Investor WeBlog

What makes some options premiums worth so much more than others? Let’s say we have two stocks, A and B. Both are trading @ $25/share. We look to sell the same month A-T-M $25 strike and one (stock A) returns 2% and the other (stock B) 4%. WHY? The answer lies predominently in the mysterious world of implied [...]

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You turn on CNBC early one morning:
The S&P Futures are UP 5 points…..GREAT!!!!!!!!!!
Fair Value is + 10…….what’s that mean?
The market is expected to open DOWN…….ughhhh……why?
To understand how this works, we need to first understand the relationship between a financial index (in this case the S&P 500) and its index futures:
The S&P 500 Index- An index [...]

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If you had a $1000.00 more today than you did yesterday, is your net worth +$1000.00 or does it depend where that cash came from (this is not one of my trick questions). What if you earned it at your job? Investment income? Found it on the street? Gift from grandma? Got lucky at the [...]

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The first time I looked at an options chain it reminded me of the first examination I took in Organic Chemistry…..I thought I was prepared for it but boy was I wrong! However, like most challenges (except perhaps organic chemistry), these hurdles can be overcome by simply doing your due-diligence and via repetition. For many experienced [...]

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What is the single most important factor in determining whether you should buy a particular stock? If you posed this question to a room full of investors you would get a myriad of different responses. The fundamentals. The technicals. The uniqueness of the product or service. Research and development. The management team and on and [...]

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