I sell predominantly 1-month options. This decision was NOT based on anything I read or was told, but rather on experience and common sense. Most stocks with options have at […]
Common Stock vs. Preferred Stock
We’ve all heard the terms common and preferred stock. Are the common shares for retail, Blue Collar Investors while the preferred shares for the Wall Street insiders? Not exactly. They […]
Fundamental Ratios: P/E, PEG and PEGY
Years ago, investors, stock brokers and financial advisors wanted to know the “P/E” of the equity before making a buy-decision. A low P/E meant that the stock was cheap and […]
Flash Trading- The Pros and the Cons
One of the trading practices discussed in our “David vs. Goliath” analogy comparing Wall Street Insiders to average Blue Collar (retail) Investors is called flash trading. This article intends […]
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 […]
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 […]
The New Stock Market- Algorithmic and High Speed Trading
Quick! Name the four largest US Stock Exchanges. The New York Stock Exchange, the Nasdaq Exchange, uhhhhhhhhh. There are more? Okay can’t answer that one, how about this question Mr. […]
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 […]
The Out-Of-The-Money Strike- Pros and Cons
Whenever a study is performed on covered call writing a stock is selected and the nearest out-of-the-money (O-T-M) strike is sold. This is repeated over and over and then the […]
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