I have always preferred playing put options to other strategies. The main reasons are as follows.
The market moves fast when in a downward trend.
Most downward trends occur when support is broken
Put options don’t suffer time decay like call options can in a slow uptrend. this is because selling is always fast and furious.
Even in an [...]
Comments Off | Read full story »
This is technically described as “selling a call (or calls) at a lower strike and buying a greater number of calls at a higher strike price”. Ideally, this trade is initiated for a minimal debit or possibly a small credit. This way, if the stock heads south, you won’t lose much.
So basically, you buy [...]
Comments Off | Read full story »
Imagine an investment offering returns “Above market rates at no risk”. Why would we take this risky plunge? Would you invest? Even though most of us know that high returns mean high risk, most people would invest their money. The main reason that this occurs is that people fail to understand the risk involved in [...]
Comments Off | Read full story »
Most people these days have a home computer and access to the internet. Decisions made about investments can be made by utilising this tool and taking full advantage of its power. Let’s take a look at some examples of just how a computer can make your decisions much quicker and easier.
Rates fees and charges
All these [...]
Comments Off | Read full story »
Beta is the sensitivity of a stock’s returns to the returns on some market index (e.g., S&P 500).
Beta values can be roughly characterized as follows:
Beta less than 0 – Negative beta is possible but not likely. People thought gold stocks should have negative betas but that hasn’t been true.
Beta equal to 0 – Cash under your mattress, [...]
Comments Off | Read full story »
Subscribe to our feed to get the latest happenings delivered directly to you.