Jul 20, 2008 | Option Trading Basics
So you sold an options contract for $380 and generated a 3.5% 1-month return. Did you ever wonder how the market determined the value of that contract to be $380? The simple equation that most of us know and understand is the following: Option premium = Intrinsic...
Jun 26, 2008 | Investment Basics
I was about to ask Linda to marry me. My knowledge of diamond rings was one level below my awareness of the cast of Sex in the City (a show I have never watched). How many of us take our hard-earned money into a mall jewelry store and purchase an engagement ring from...
May 17, 2008 | Investment Basics
This is the third and final article in this trilogy of writings regarding generating income via stock options to erase a negative cash flow situation. In part I, our strategy was developed. Capital preservation was of utmost importance since we needed to maintain our...
Apr 29, 2008 | Investment Basics
Make money so you don’t lose money. No, this is not a quote from Yogi Berra! It’s me, Alan, speaking and I make no apologies for this seemingly sophomoric statement. On April 12, 2008, I wrote an article wherein I described a negative cash flow property I...
Apr 12, 2008 | Investment Basics
The light bulb went on! I have a property in Florida that is negatively cash flowing. I also have a skill generating cash by selling stock options. This is a marriage made in heaven! When I started trading stock options, the cash was used to pay for my son’s...
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