Jul 16, 2011 | Stock Option Strategies
Wait a minute! What if I buy a call option instead of the stock and then sell a call option on that option? I’ll be spending less money than outright purchase of the equity and still generate cash from the sale of the call option! This idea has come to many of you and...
Dec 18, 2010 | Stock Option Strategies
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 results are compared to the overall market performance. The usual conclusion is that covered...
Oct 23, 2010 | Stock Option Strategies
As safe a strategy that covered call writing is, there is some risk…the risk is in the stock, not in selling the option. That is why some investors who utilize this strategy buy protective puts to alleviate some of the risk. Definition of a protective put: A put...
Jul 5, 2009 | Stock Option Strategies
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?...
Jan 18, 2009 | Stock Option Strategies
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...
Dec 21, 2008 | Stock Option Strategies
_________________________________________________________ Blue Collar Mission Statement 1- Become CEO of your own money 2- Become financially independent ___________________________________________________________ Never before have the convictions of the Blue Collar...