Mar 11, 2017 | Investment Basics, Option Trading Basics, Options Calculations, Put-selling, Stock Option Strategies
Whether I am selling call or put options I prefer to use a cash account. That’s where we invest and utilize only our own cash to purchase stock and secure put trades. More aggressive investors may want to magnify their returns by leveraging margin accounts. This...
Oct 22, 2016 | Exchange-Traded Funds, Investment Basics, Option Trading Basics, Stock Option Strategies
Covered call writing results can be enhanced through the use of leveraged ETFs and margin accounts. However, so too is the risk elevated. In this article, the pros and cons of these strategies are examined. Definitions Leveraged ETF: An exchange-traded fund...
Jan 3, 2015 | Investment Basics, Option Trading Basics, Options Trade Execution, Stock Investing, Stock Option Strategies
Covered call writing and selling cash-secured puts are conservative strategies for risk-averse retail investors. This is why I feel most of us should be trading in cash accounts (no borrowing) and sheltered accounts whenever possible. For those of us who have higher...
Feb 7, 2013 | Investment Basics, Option Trading Basics, Options Calculations, Stock Investing
Can covered call writing profits be leveraged to even higher levels using margin accounts? In real estate investing, the concept of leveraged investing is well known and documented in such best-sellers as Robert G. Allen’s Nothing Down for the 2000s and Michael A....
Jul 30, 2011 | Investment Basics
In real estate investing, the concept of leveraged investing is well known and documented in such best-sellers as Robert G. Allen’s Nothing Down for the 2000s and Michael A. Lechter’s OPM (Other People’s Money). The idea of generating profit while using little or none...