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Texas Tomorrow: Understanding the Texas Tuition Promise Fund
Many times when we meet with clients, the topic of how to pay for their children’s college is on the forefront. There are really two main choices when deciding on a college education fund in Texas, a traditional qualified 529 savings plan or the Texas Tuition Promise Fund. Texas has a traditional qualified 529 savings plan which is managed by a […]
The Evolved Investor: Why Behavioral Finance Matters
Few things make us as emotional as the prospect of losing money. Wouldn’t investing be easier if you were a robot? Imagine the market crashes and yet, there you are, cool as a cucumber. But unfortunately, behavioral finance research proves that’s not how it works. As humans, we are hardwired to avoid pain and pursue […]
How to Write Covered Calls With Better Yields
With traditional investing, you buy stocks, hoping the price goes up, so that when you eventually sell you can make a profit. While this type of investing can make you money, it doesn’t always have a payout, and even when it does, you don’t always have a livable income from that payout. There are other […]
Top 5 Covered Call ETFs (2022)
Exchange-traded funds (ETFs) have become a popular way for investors to access countless strategies, including covered calls. From smart beta to actively managed funds, there are many different ways for investors to generate an income above and beyond dividends. However, there are also several drawbacks to consider before using ETFs. Let’s look at the top […]
How to Calculate Covered Call Outcomes
Covered calls are one of the most popular option strategies used by both short-term traders and long-term investors. In fact, The Snider Investment Method uses covered calls at its core to generate consistent cash flow. The strategy is more conservative than most option strategies and is relatively simple to execute—the key is understanding how to calculate covered […]
Transfers, IRA Rollovers, and 60-Day Rollovers
A while back, one of our clients called to inquire about our thoughts on the article, IRA Rollovers Ruling Stuns Advisers and Savers. After reading it, I can certainly understand how the terminology in the article can be very confusing for the average person, so let’s clarify a few of things regarding this. What is the […]
Tips for Managing Covered Call Positions
A covered call position is a great way to generate extra income from a stock portfolio. While the strategy is fairly straightforward, there are many nuances that can make managing a covered call position challenging—especially when the stock pays dividends or if the price is approaching the strike price near expiration. In this article, we […]
How Dividends Impact Option Pricing
Dividend stocks are a popular way to generate income, but they also impact several other investment strategies. For example, dividends impact option pricing. Let's say that an investor that’s selling call options to generate an income should be aware of how option prices behave when a company announces and pays a dividend to avoid any […]
How to Choose the Right Covered Call Expirations
Covered calls are a popular strategy for generating income from a portfolio of stocks. While the strategy may seem straightforward, investors must decide between various strike prices and expiration dates that influence the risk of selling stock, as well as premium income and capital gains. In this article, we will take a look at how […]
Can Option Trading Really Give You Safer Retirement Income?
Option trading may sound like a risky endeavor, but like most investments, it’s only as risky as you make it. After all, stock investing can be incredibly risky if you’re investing in penny stocks, but few financial advisors would argue against a diversified blue-chip stock portfolio. The key to building income for retirement is using […]
How to Invest an Inherited IRA
Receiving an inheritance can cause a mix of emotions, and depending on the amount of assets, could have a significant impact on your lifestyle. While it may be tempting to withdraw the money, it’s important to step back and take the time to understand the financial implications of your decisions. In this article, we will […]
What are House Margin Requirements?
When buying shares of a stock, you may occasionally receive an alert that reads something like this: “You are attempting to purchase a security that may be held to a higher house margin requirement than most securities. If you have a Margin Account, this will be reflected in your Buying Power. Please Place Order to […]
How to Select a Broker for Covered Calls
Covered calls are a great low-risk strategy to generate a predictable income from an existing portfolio. By selling call options against stocks that you own, you can generate an income above and beyond equity dividends and recoup some losses if the stock declines in value. The only “cost” is opportunity cost if the stock rises […]
Should You Trade Covered Calls Around Earnings?
Covered calls are a great strategy for investors looking to generate an income from a stock portfolio—such as retirement investors living on a fixed income. By selling the right to buy a stock that you own, you can collect option premiums and you are only required to sell if the stock hits the (higher) strike […]
The Importance of Asset Allocation
Most people are familiar with asset allocation even if they don’t recognize the term. For example, the SEC’s Beginners’ Guide to Asset Allocation uses the example of a street vendor selling both sunglasses and umbrellas. The street vendor would never sell both items at the same time but having both in stock helps even out their revenue regardless of […]