Jul 16, 2011 | Stock Option Strategies
Wait a minute! What if I buy a call option instead of the stock and then sell a call option on that option? I’ll be spending less money than outright purchase of the equity and still generate cash from the sale of the call option! This idea has come to many of you and...
Jul 9, 2011 | Option Trading Basics
I sell predominantly 1-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...
Jul 2, 2011 | Investment Basics
We’ve all heard the terms common and preferred stock. Are the common shares for retail, Blue Collar Investors while the preferred shares for the Wall Street insiders? Not exactly. They are both types of stock that a corporation may issue. Let’s clarify the difference....
Jun 25, 2011 | Fundamental Analysis
Years ago, investors, stock brokers and financial advisors wanted to know the “P/E” of the equity before making a buy-decision. A low P/E meant that the stock was cheap and market forces would lead to price appreciation. The opposite theory also was considered Wall...
Jun 4, 2011 | Investment Basics
One of the trading practices discussed in our “David vs. Goliath” analogy comparing Wall Street Insiders to average Blue Collar (retail) Investors is called flash trading. This article intends to explain flash trading and discuss the pros and cons of the...