beginners corner
Archive | Fundamental Analysis RSS feed for this section

The 10 Most Common Mistakes Made By Covered Call Writers And How To Avoid Them

Your neighbor bursts into your house and exclaims “I just read this article…You buy a stock and sell an option and cash flows into your account instantly. It’s a miracle! I’m getting started tomorrow”  If you are a good neighbor and knowledgeable about covered call writing you will immediately tie him to a chair, put tape over […]

11 Comments Continue Reading →

Covered Call Writing: Managing Stocks That Have Gapped Down

Every once in a while, when using our covered call writing strategy a stock will gap up or down. A gap is a break between prices on a chart that occurs when the price of a stock makes a sharp move up or down with no trading occurring in between. Gaps can be created by factors such as […]

21 Comments Continue Reading →

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 market forces would lead to price appreciation. The opposite theory also was considered Wall Street Fact: A high P/E represents an over-valued stock and one […]

30 Comments Continue Reading →