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Interest Rates and our Stock Market Investments

A few weeks ago, I wrote an article pertaining to The Yield Curve which describes a graph of the interest rates of short, intermediate and long term treasury debt securities. This sparked dozens of questions and comments from our readers on this subject so I thought I’d follow-up with some basic economic information on the impact that […]

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Types of Customer Orders plus Industry in the Spotlight

When instructing our online discount broker as to the actions we want taken, we submit a customer order. These orders can take several different forms depending on our investment strategies and objectives. We can buy or sell; request a specific price or simply the best available price; we can stipulate an action given a particular […]

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Technical Market Theories:More Tools for the Technical Analyst plus Industry in the Spotlight

Chapter 8 in Cashing in on Covered Calls is devoted to technical analysis. This is a method of predicting future stock price movements based on observation of historical stock price movements. We use it to identify trends and for our buy/sell decisions.  The parameters I chose for my system include moving averages, MACD, stochastics and […]

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Using Leading Economic Indicators in our Covered Call Decisions

Here’s my take on the economy and how it influences our covered call decisions: In a healthy economy, stocks are more likely to appreciate in value and we can then take a more aggressive posture with our investments. This means selling more O-T-M strikes and generating even higher investment returns. If we are experiencing economic woes […]

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Using Covered Call Options to Increase the Value of Your Stock

If you had a $1000.00 more today than you did yesterday, is your net worth +$1000.00 or does it depend where that cash came from (this is not one of my trick questions). What if you earned it at your job? Investment income? Found it on the street? Gift from grandma? Got lucky at the […]

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Beware of Leveraged ETFs; The Changing Face of Exchange-Traded Funds

How would you feel if your best friend and next door neighbor was metamorphasizing into a monster? A Dr. Jekyll and Mr. Hyde if you will. Could that be happening to our old friend, the Exchange Traded Fund? The historical definition of an ETF is a security that tracks an index, a commodity or a basket […]

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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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