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The Process of the Tender Offer
The stock market is a place where buyers and sellers congregate to trade. Usually, when you sell shares, you can just click sell and the broker will match a buyer on the other side and vice versa when you buy shares. However, there may be a special occasion where a buyer will contact you directly […]
How and When to File for Social Security
Most people look forward to retirement and plan on Social Security to cover at least some of their retirement expenses. Before you decide to join the nearly three-quarters of Americans that opt for early benefits at age 62, consider that many Americans are better off delaying benefits to maximize their income during retirement and the […]
How a Covered Call Advisor Can Help You Trade Options
Covered calls are an excellent way to generate income from a long stock portfolio, but options trading can be intimidating to those without experience. While you’re unlikely to lose your shirt trading covered calls, those looking to generate a steady income stream could benefit from a covered call advisor to help construct an optimal portfolio […]
How to Screen for Options with optionDash
Covered calls are a popular way to generate income from an equity portfolio. But, of course, the challenge is finding stocks that offer the right balance of safety, yield, and upside potential. Fortunately, covered call screeners can simplify the process by automatically generating a list of ideas from a given set of criteria. Let’s look […]
5 Habits of Savvy Investors-Part 1
Have you ever wondered how great investors think or what they’re doing that the rest of the world isn’t doing? What makes them tick? In this multi-part series, 5 Habits of Savvy Investors, we’ will uncover the investment secrets of some of the most successful investors of the last century. Different Strokes for Different Folks Most […]
Covered Call Funds vs. Do-It-Yourself Covered Calls
Covered calls can be an excellent way to generate monthly cash flow while reducing your risk investing in the stock market. While covered calls have been available to individual investors for a long time, covered call funds, (also known as buy-write funds) have become increasingly popular over the past decade. These funds enable investors to […]
Selling Call Options: Popular Strategies & Alternatives
Stock options may be risky and unfamiliar for many traditional investors. For example, they may be uncomfortable with the idea of losing their entire investment or be unsure of how to find opportunities in the options market. Both of these concerns are valid for many option traders, but some strategies are far less risky and […]
What Are the Components of Asset Allocation?
It’s easy to see that many financial assets are highly correlated — especially large assets. If there is a new sign of an economic slowdown, investors expect the entire S&P 500 index to move lower in response. Similarly, if interest rates rise, investors expected all fixed income investments to fall. The individual stock or bond […]
Can I Trade Options on an Index
Passive investing has exploded in recent years. Investing in broad-market indexes has surged in popularity and costs less than ever before. You can take this approach to the next level by incorporating option trading in addition to index investing. The easiest way to trade options on an index is with the use of Exchange-Traded Funds […]
Regulation T: What It Is and How It Impacts Margin Accounts
Margin accounts let investors borrow money from their broker to purchase stock. This leverage enables them to realize higher returns, but the same leverage increases risk. If the equity in an account falls below a certain threshold, brokers may issue a margin call or liquidate stock positions to protect their lent money with little or no notice. […]
Emotions are an investor’s worst enemy
We are hardwired to seek out predators and react to warning signals. While this innate behavior may have helped keep our ancestors alive, it also makes it almost impossible to make good investment decisions. Few things make us as emotional as the prospect of losing money. That’s why investing is a continual struggle between logic and […]
Are Buy-Write Funds a Good Hedge Against Volatility?
There are many different ways to minimize volatility in a portfolio, including diversification into multiple asset classes, but buy-write funds have become a popular alternative for stock investors looking to reduce volatility and generate income. Most investors are concerned with two things when it comes to building a retirement portfolio, risk and return, and it’s […]
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 […]
The Risk of Covered Calls: What You Need to Know Before Trading Options
Covered calls are one of the most popular options strategies for generating extra income. But while they’re less risky than other option strategies, they aren’t risk-free. It is critical to understand the risk of covered calls and the steps you can take to mitigate it before using them as part of your investment strategy. Let’s […]
How Do Cash-Secured Puts Work?
Options may be notorious for their speculative use, but many investors use them to generate income or achieve other goals. For example, cash-secured puts provide you with an alternative way to delay stock purchases and buy stock below its current price. You earn a cash premium that you can keep whether or not the option […]