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EARNINGS REPORTS ARE TELLING US TO BUY STOCKS!

Avoid Earnings Reports like the plague! That’s what I promote in my book and DVD Series, Cashing in on Covered Calls. I stand by that premise for many reasons, the most important is the one that relates to the great returns I have been getting. But ERs do give us information regarding the overall economy, industires, […]

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THE FACTORS THAT DETERMINE THE VALUE OF YOUR OPTION PREMIUM plus Our Readers Pick their Favorite Stocks

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 Value + Time Value To review, let me […]

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BEING CEO OF YOUR OWN MONEY MEANS MAKING INFORMED DECISIONS plus Industry in the Spotlight

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 “some person” . […]

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USING STOCK OPTIONS TO NEUTRALIZE NEGATIVE CASH FLOW PROPERTIES/ PART III- Evaluating our Investment

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 initial investment to continue to generate our monthly returns. Compounding of […]

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USING STOCK OPTIONS TO NEUTRALIZE NEGATIVE CASH FLOW PROPERTIES / PART II – Real Life Example

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 own in Florida. I was losing $800 per […]

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USING STOCK OPTIONS TO NEUTRALIZE NEGATIVE CASH FLOW PROPERTIES

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 college education, the purchase of my […]

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RECESSION AND STAGFLATION- How do we respond?

You can’t open a financial newspaper or watch a financial program without hearing the latest buzz-words recession and stagflation. There has been much banter lately as to whether or not we are in a recession, approaching one or simply in an economic slowdown. I just love it when the experts can’t agree with each other […]

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DEALING WITH VOLATILE MARKETS-The Media Experts vs. The Blue Collar Investor

WOW! For the last six weeks I have written articles that I’ve had to put on the backburners for future publication. This is due to the inordinate amount of market volatility. That’s all I’ve been thinking of, so I assume that most of you have been consumed with the same issue. Many media experts have […]

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HOW A BLUE COLLAR INVESTOR MANAGES A VOLITILE MARKET

WOW! It looks like we’re in the midst of another 10% market correction from its recent highs. This can drive the average investor crazy, but not us. First and foremost we must remember our commitment to the system: – GoldenRule #1: We must be willing to accept a certain amount of risk. We understand that […]

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BEWARE OF WINDOW DRESSING!

The Sarbanes-Oxley Act of 2002 stiffened the requirements of all mutual funds to disclose their holdings on a quarterly basis. This was done in an effort to increase the fund’s transparency so as to protect Blue Collar Investors like ourselves. As a result, fund managers were exposed to the possibility of being found to hold certain poorly performing […]

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