In this guide, we’ll explain how covered calls work, the benefits of writing covered calls for income, and the risks you need to be aware of.
50/50 Chance We See This One Market-Moving Event in August
August is an odd month in the markets… Trading desks are thinly staffed, so there is less trading activity going on. But I’ve been called back to the trading desk many times in the prime back-to-school season. Looking at a chart of the S&P 500 and the 10-year bond… there’s a correlation to what the […]
What to Buy During the Next Big Down Day in the Market
Last Monday, July 19, 2021, the U.S. stock market dropped almost 950 points, or 2.7%, on the Dow Jones Industrial Average. While 2.7% doesn’t sound like a lot, the negative dollar figure was eye-opening when applied to a sizeable brokerage account. I received many subscriber emails asking what to buy, what to sell, what to […]
Options 101: The Importance of the “Greeks”
New options traders ask, “what are option Greeks?” Option Greeks are different factors affecting options contract prices. Option Greeks include: Delta (Δ) tells us how much an option price will move for every $1 gain in stock Gamma (Γ) tells us how much the delta can increase every time the stock moves Theta (Θ) is […]
Schwab, TD Ameritrade, or Fidelity Options Trading
If you want to trade options, you might consider using a broker. We’ll take a look at Schwab, TD Ameritrade, and Fidelity options trading.
TransMedics is Transforming Transplants
TransMedics (TMDX) is a very interesting company that is reimagining traditional transplant therapy for end-stage organ failure and several diseases. Its Organ Care System (OCS) is a novel concept that works better than current standards as its replicates natural living and functioning of an organ outside of the body. The technology keeps donor organs, such […]
What Is The Option Chain?
If you’re new to options, one of the key things to understand is the option chain. This is where you’ll find available options contracts for calls and puts for most stocks, as well as the strike prices and pricing information. As Robinhood explains it: An option chain is like a restaurant menu. It tells you […]
Using Options To Juice Your Fixed Income Returns
The Federal Reserve’s ultra-low interest rate policy and quantitative easing programs are regularly debated among economists, armchair analysts, and everyone in between. Monetary policy can be pretty complex, with hundreds of variables to consider. So, it’s not a huge surprise that there’s so much disagreement on policy. Most studies have shown that the Fed’s increasingly […]
A Guide to Cash-Secured Puts: Get Income or Buy Stocks Cheap
Cash-secured puts are an advanced options trading strategy. We explain how they work for sellers and buyers, and how you can make a profit.
Flash Crash Fundamentals
Last Monday, a stock market “mini-crash” scared a lot of investors, with many questioning whether this was the start of the next big market drop. Fortunately, it was just a one-day scare, but a day like last Monday helps reinforce some lessons for long-term investors. To start, despite the myriad reasons floated by the financial […]
