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Are Covered Calls Good in a Bear Market?
You’re approaching retirement and suddenly the market moves sharply lower. More than ten percent of your portfolio has disappeared over the past month and you’re concerned that the bear market could worsen over the next couple of months. You’re starting to worry that you may have to adjust your retirement income expectations if nothing changes. […]
How & Why to Sell Options During a Recession
Recessions often lead to a drop in stock prices, as slowing revenue lowers valuations. While some investors choose to ride it out or shift their portfolio into cash or bonds, choosing to sell options during a recession can help you stay in the market, hedge against downside risk, and generate income. In particular, covered calls […]
5 Signals to Predict a Bear Market (and Why It’s So Hard)
Bear markets occur when a market index falls more than 20% from recent highs. While it would be great to predict a bear market and sell immediately before it occurs, timing the market is impossible to do consistently. In fact, that’s a huge reason why actively-managed funds tend to underperform passive funds. However, watching bear […]