Financial Education & Training to Improve Your Retirement
Follow our blog for Snider Advisors' latest thoughts on the stock market, investing, and financial planning issues impacting our clients. You'll find a ton of great articles on options trading, covered calls, income investing, and more.
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 […]
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 […]
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 […]
Many individual investors wish to utilize options trading to generate income but are unsure of whether or not they can trade options in an IRA. Most individual retirement accounts (IRAs) are indeed capable of trading options, provided they request the right settings. This includes Traditional, Rollover, Roth, Simple, and SEP IRAs. Where most investors can’t trade […]
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. […]
Many retirement investors are interested in bonds because they are both safer and more predictable than the stock market. Bonds pay out interest payments on a regular basis, and if held to maturity, repay the principal amount. If you’re holding highly rated bonds, the default risk is minimal compared to equities. They are ideal for […]
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 […]
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 […]
Many investors fail to appreciate the substantial impact that dividends have on stock performance over time. According to Hartford Funds, more than 80 percent of the total return of the S&P 500 index between 1960 and 2016 is attributed to the compounding of reinvested dividends. The same study found that companies that grew or initiated dividends […]
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 […]
Bonds were a relatively uneventful asset class until the 2008 financial crisis when they quickly became a top performer. Over the course of the crisis, highly rated bonds posted a modest six percent return when stocks lost nearly 40 percent of their value. Deciding to invest in bonds could have saved a portfolio from catastrophe! […]
Covered calls have become one of the most widely used option strategies for generating income. While simpler than most option strategies, finding the right covered call opportunities can be challenging—especially when you’re trying to build a holistic portfolio with minimal risk. In this article, we will look at how to choose the right stocks and […]
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 […]
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 […]
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 […]
More Covered Call and Option Trading Education
We pride ourselves on empowering both beginner and experienced investors. As covered call advisors, we use our extensive knowledge to train our clients to write covered calls and boost the income from their portfolios.
