Thursday, November 14, 2024
One thing that I’ve learned in the many years that I’ve traded options is that most investors hate hedging. It’s not the idea of hedging (i.e., protecting a portfolio’s downside) that’s the issue. It’s the cost. Hedging can be expensive over time. Investors generally are not fans of things that are meant to lose money […]
Sometimes, a useful method for finding good trades to make is looking at what other people are doing. For instance, we can easily search for large covered call trades in order to get trade ideas. One interesting covered call trade in iShares MSCI Emerging Markets ETF (EEM) will boost the return from holding the ETF […]
Recently, Seeking Alpha put out a list of low-valuation ETFs with strong performance year-to-date for 2021 – and I noticed one very familiar name on the list… The short discussion pointed out how investors may benefit from a shift away from high-valuation growth investments, to those with lower valuations that are also out of favor […]
In a flurry of bad news coming out about the company Facebook (FB) has announced a name change to Meta. For this article we’ll use the name Facebook, at least until they fully rebrand. Thanks to earnings, and an ad spending warning from Snap, Facebook shares slipped from about $342 to $312. Plus, if you […]
What are puts and calls, and how do options work? Keep reading for these answers and to understand the basic terminology you need to know.
Covered calls are one of my favorite strategies. They’re safe… Simple to make (once you get the hang of them)… And can create double-digit yields on stocks that don’t pay any dividends. The thing is, getting started with covered calls can be tricky. Especially if you’re new to options. That’s where today’s ETF comes in. […]
Global leaders want millions of EVs on the roads by 2030, sending electric vehicle stocks accelerating. These goals have been set in effort to reduce vehicle emissions. The U.S. for example, wants to cut emissions by as much as 50% by 2030. President Biden signed an executive order that would make half of all new […]
The “buy now, pay later” market has become popular for consumers who are strapped for cash, or want to make monthly payments, without the prolonged effect of compounding interest. One of the emerging leaders in this niche market is Affirm Holdings (AFRM). Affirm Holdings made its stock debut in mid-January following its initial public offering. […]
One of the more intriguing aspects of 2021 has been the relatively high levels of expected volatility in the equities markets. The VIX, a widely-used barometer of broad market volatility, has been consistently higher throughout the year compared to its long-term median. Despite the high levels of anticipated volatility, the market hasn’t yet seen that […]
Dear Reader, The official numbers finally show what we’ve all felt in our wallets for months if not years: Inflation is here. No wonder – 40% of U.S. dollars in circulation were printed in the last 12 months. Whether that inflation is here to stay or not, we as investors have to adapt. That’s why […]
