What is Our Edge? Plus Stock Chart of the Week

On May 12, 2011, the Wall Street Journal published an article on the Galleon Verdict, the guilty verdict of hedge fund manager Raj Rajaratnam (henceforth referred to as “Raj”). A hedge fund is an unregulated private investment partnership limited to...

Bernie Madoff Revisited

Oh no, not another Bernie article! Sorry folks, I couldn’t resist. I have such an interest in this story on so many levels. Madoff was claiming to use a strategy related to covered call writing. The Madoff whistleblower, Harry Markopolos, was involved with a...

Short Selling: Positives and Negatives

Short selling are transactions in which investors sell borrowed securities in anticipation of a price decline and are then required to return an equal number of shares at some point in the future. Let’s assume you are bearish on a stock that is currently trading at...

The Risk-Reward Profile for Covered Call Writing

(I am writing this article because I have had feedback in the past from investors who reject covered call writing based solely on the theoretical risk-rewrad profile.) A risk reward profile is a chart of the theoretical maximum profit or loss a particular investment...