Ask Alan – Calculating the Target Price of a Stock

Ask Alan – Calculating the Target Price of a Stock

Alan answers a question coming from Dana of Ocala, FL. Dana writes… "My friend said that to compute the target price for Apple Computer you should multiply it by the forward P/E ratio of 11.57 and the earnings per share of 44.16, and that will leave us with...
Ask Alan – Calculating the Target Price of a Stock

Ask Alan – When to Enter Your Covered Call Trades

Alan answers a question coming from Ron of Milwaukie, OR. Ron writes… "Will you enter a position when the market is in general decline, or when the futures are down and you know that the market will gap down at open? In other words, will you enter a...
Ask Alan – Calculating the Target Price of a Stock

Ask Alan – Strike Selection and Covered Call Writing

Alan answers a question coming from Dan of Toronto, Canada. Dan writes… "I’ve only used out-of-the-money strikes when selling covered call options, but I see you use in-the-money strike prices as well. How do you determine which is the nest strike...