Investing materials are loaded with acronyms for unconventional opportunities, and if you’ve ever grimaced and thought to yourself, “What’s the BDC meaning?” you aren’t alone. A quick search to find out what BDC means can net you all sorts of answers: Business Development Council, Business Development Center, even Bottom Dead Council, whatever that is … […]
Dr. Strangelove, the Delta Variant, and Buying the Dip
During the first half of 2021, stocks climbed higher in a very linear fashion. It was a great time to watch your investment account balances, but not so good if you like to “buy the dip,” since there never seemed to be a dip. Now in the waning days of summer, fears of a broader […]
How to Choose an Online Brokerage for Options Trading
Unsure, confused, and lost when it comes time to choose a brokerage, many folks simply choose the brokerage one with the hottest offer available at the time they’re looking. We’ve all been there. But it’s the wrong way to think. When it comes to choosing an online brokerage for your needs, there are quite a […]
An Alternative Way to Use Covered Calls for Higher Returns
Covered calls are popular and powerful trading strategies for many reasons. Above all else, an overwriting system can work in just about any type of market. There aren’t many strategies that offer a benefit in most market environments. As a reminder, investors make covered calls when they buy a stock (in blocks of 100 shares) […]
Sonos Proving to be a Sound Investment
Sonos (SONO) is a relatively new company that has only been trading on the major exchanges for a few years. In August 2018, the company priced its initial public offering at $15 a share, below the expected range of $17–$19. SONO made a splashy debut on the market, zooming 32% in its first day of […]
Dividend Yield Ratio: The Metric Every Investor Should Know
Keep reading to learn all about dividend yield ratio, including how to calculate it and how it can help you evaluate dividend stocks.
Three High-Yield Stocks Paying Extra Dividends
The pandemic-triggered shutdown of a large portion of the global economy forced many companies to cut dividend payments, or at least stop growing their dividend rates, for most of the last year and a half. Although we now seem to be in a reopening phase, I sense a reluctance from Boards of Directors to bring […]
Trade of the Week: MRNA
Two of the big COVID vaccine producers, Moderna (MRNA) and Pfizer (PFE), saw a significant amount of options activity last week. On one day, with MRNA down nearly 6%, its options traded 4x the normal volume. Most of the activity was still on the call side of things though, which tends to be a bullish […]
How to Maximize Your Returns with Oversold Options
Some of the best options trading opportunities can be found in wildly oversold stocks. Look at Activision Blizzard (ATVI), for example. ATVI gapped from a high of $91.40 to a low of $78 on fears of litigation and a potential Chinese crackdown on video games. To me, that pullback was overkill—especially at a time when […]
Option Premiums and Their Impact on Options Trading
An option premium is the money you earn for selling an option. Read on for a better understanding of premiums and what drives their pricing.