Nov 26, 2011 | Options Calculations
I sell predominantly one-month options. This decision was NOT based on anything I read or was told, but rather on experience and common sense. Most stocks with options have at least four expiration cycles affiliated with them at any point in time…the current...
Nov 19, 2011 | Investment Basics
I’ll bet that each and every one of you has received an email that went something like this: IMAGINE IF YOU HAD THE CHANCE TO BUY A WAL-MART FRANCHISE IN MEXICO RIGHT WHEN IT FIRST OPENED ITS DOORS, AND ALL YOU NEEDED WAS A SMALL STAKE TO GET IN. HURRY, WE SEE THIS...
Nov 12, 2011 | Covered Call Exit Strategies
With one week remaining before the expiration of the November option contracts I thought I’d use this week’s blog article to review the process of the rolling exit strategies. I will use a real-life example taken from our Weekly Stock Screen and Watch...
Nov 5, 2011 | Investment Basics
What’s going on here? Stock prices are historically inexpensive. Bond yields need a magnifying glass to detect. Earnings reports have been positively surprising for eleven consecutive quarters. There are trillions of institutional and retail investor dollars...
Oct 29, 2011 | Investment Basics
We just can’t sell our losers! Some will actually buy more shares to average down the cost basis. Why is that? If sticking your index finger into an outlet resulted in an uncomfortable shock would you then try it with your other fingers? After you dipped your hand in...