Sep 15, 2012 | Investment Basics
When studying investment basics, I’m reminded of a quote from none other than Albert Einstein who called compounding “the greatest mathematical discovery of all time”. Stated differently, a dollar received today is worth more than a dollar received...
Aug 18, 2012 | Investment Basics, Option Trading Basics, Options Calculations
In last week’s article concerning option trading basics I highlighted the in-the-money strike in our covered call writing strategy. In this article I will expand our options calculations to all three types of strike prices. First, let’s review each of...
Jun 30, 2012 | Investment Basics, Options Trade Execution
Executing our stock and call option trades is fast and efficient. But what actually goes on behind the scenes after we enter market or limit orders? Once we type our order to the online discount broker there are a series of events that take place terminating in the...
Apr 28, 2012 | Investment Basics, Stock Investing
Successful covered call writing requires proper stock and option selection. With the significant increase in our premium membership subscriptions over the past several months we have received dozens of inquiries as to how best to incorporate the stocks on the...
Apr 14, 2012 | Investment Basics
When we defined the Greeks in a previous article concerning investment basics, it included a discussion of the price sensitivity of the option premium as it relates to the underlying equity, time and other factors. One of the rules was that (all other factors being...
Apr 7, 2012 | Investment Basics
Part of learning investment basics is to understand the relationship between interest rates and our investment decisions. That’s why it is important to educate ourselves about Yield Curves. These are lines that plot the interest rates of (most frequently)...
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