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Dark Pool Liquidity- Secrets of the Institutional Investors

What is the single most important factor in determining whether you should buy a particular stock? If you posed this question to a room full of investors you would get a myriad of different responses. The fundamentals. The technicals. The uniqueness of the product or service. Research and development. The management team and on and […]

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Exchange Traded Funds (ETFs) and Covered Call Writing

Would you like a quick, easy, inexpensive and still safe way to invest with covered call writing? If so, why not consider using exchange traded funds? In chapter 14 of my first book, Cashing in on Covered Calls, I discuss diversification and dollar cost averaging as an investment strategy and how that approach can be utilized when […]

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Reverse Stock Splits and How they Effect our Option Contracts

In a filing with the SEC last week, Citigroup said it is considering a reverse stock split as part of its effort to convert preferred shares (take priority over common shares on earnings and assets in the event of liquidation) to common shares. What is a reverse stock split?: It is a reduction in the […]

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Tax Treatment of Covered Call Writing in Non-Sheltered Accounts

President Obama has brought to the forefront the issue of taxes as a major part of his economic stimulus package. With that in mind, I thought it appropriate to discuss some of the tax issues that face covered call writers. First and foremost, let me state the obvious: I am not a tax expert. However, I […]

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The Blue Collar Stock Market Meets the S&P 500

With all the negativity surrounding our economy, with the stock market testing its November lows and with consumer confidence on life support, this author is about to write a positive column. Am I insane? The re-incarnation of Crazy Eddie perhaps (remember him?). As I sit here in my home office typing away, I can just […]

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Triple Witching Friday- Coming to YOUR Portfolio on March 20th! plus Industry in the Spotlight

Triple Witching Friday…..what a scary term! Is it the day after Halloween? NO. Is it a hazing ritual for a college fraternity? Not even close. Well then, what is it ? It is an event that takes place when stock index futures, stock index options and stock options all expire on the same day. Triple […]

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The Option Buyer or the Option Seller: Which should you be?

You walk into your local stationery store and pull out a $20 bill. “Give me 20 state lottery tickets, please.” You can’t help but dream of all the riches that $20 investment will provide to you. After all, the grand prize is up to $25 million dollars. You even go so far as to compute […]

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Stop Loss Orders- Should We Use Them When Selling Covered Calls?

I am continually finding myself impressed with the level of knowledge of my fellow Blue Collar Investors. One question that has been coming up lately relates to the use of stop loss orders when selling covered call options. This is an order to sell (or buy) a security once the price has dropped below ( or risen […]

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The Basics of the Call Option plus a Current Real Life Example

Definitions: Implicit in the term covered call writing is the fact that we are selling call options. They are covered because we first own the underlying equities prior to selling the option. Since this is my first article of the new year and given the fact that we have so many new members of the […]

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The Bernie Madoff Ponzi Scheme: A Validation of our Blue Collar Philosophy plus Tony C. checks in on Cramer

_________________________________________________________ Blue Collar Mission Statement 1– Become CEO of your own money 2- Become financially independent ___________________________________________________________ Never before have the convictions of the Blue Collar philosophy become more meaningful as they have this past week with the arrest of Bernie Madoff for what may become the biggest fraud in the history of Wall Street. Madoff, […]

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