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How to Construct a Collar Option
Covered calls are a popular way to generate income from an existing stock position, but they aren’t the best choice for every situation. For instance, covered calls have significant downside risk and don’t protect you from large losses or help you lock in profits. Fortunately, there are hundreds of different options strategies out there to […]
Best Option Trading Strategy for a Portfolio Paycheck
There’s an option trading strategy that’s practically a hidden reservoir of monthly income generation lying in your own investment portfolio’s proverbial ‘backyard.’ Becoming aware of this strategy and learning how to use it empowers you to start generating real income from your portfolio, quickly. While you may not have known about this great opportunity to put […]
Generate Portfolio Income in Retirement
In an ideal world, retirees would have so much money saved before retirement that they could hang up their hat without having to work for another dollar. However, portfolio income in retirement is a huge challenge for many retirees. Unfortunately, for most people, having a nest egg – even a decent sized one – isn’t […]
Generating Income with Cash Secured Puts
Options are often seen as speculative instruments for traders, but many investors use them to generate income. In fact, the most sophisticated option traders use them to reduce risk, limit downside and boost the income on a stock portfolio. While covered calls are the most popular income strategy, there are several others that investors should […]
5 Sources of Retirement Income in 2022
Earning retirement income during uncertain economic times requires some creativity and optimism. With stock market volatility, a “set it and forget it” approach to retirement strategy likely won’t result in much extra income. Every investor is different and the right strategy for you reflects on your investment goals and interests. A blended approach can be […]
How to Protect Gains with Options
Most investors are happy with unrealized gains, but there’s always a risk of loss until they sell. Fortunately, there are a couple of options strategies that you can use to protect gains by locking in profits without immediately selling your stock. The key is finding the strategy that provides the right level of protection, upside […]
Using Covered Calls to Generate Retirement Income
Many retirees draw down their portfolios to finance their retirement, but generating income can help stretch your savings much longer. While dividend stocks and bonds are popular income investments, covered calls can provide an extra boost (and some downside protection). As a result, they may be a worthwhile addition to your retirement plan. In this […]
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 to Write Covered Calls on ETFs
Writing covered calls on stocks is a popular way to generate an income from a portfolio of stocks, but you can also use covered calls on ETFs (Exchange-Traded Funds) and other securities. While the mechanics of setting up a covered call position are the same, there are some crucial differences between stocks and ETFs that […]
How to Find Covered Call Opportunities
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 […]
Is running out of retirement money a fate worse than death?
Imagine this – the year is 2040. You are 80 years old, in reasonably good health, and you have just spent your last penny of retirement savings. You have no other sources of income. For the rest of your life, you will rely on government handouts and the charity of others. Sit with that image […]
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 […]
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 […]
Add Covered Calls to Your Dividend Strategy
Many investors have turned to a dividend strategy as a way to generate income in today’s low interest rate environment. Unfortunately, most high-dividend strategies are relegated to specific sectors, such as utilities or real estate, which limits diversification and access to high-growth opportunities in tech and other sectors that tend to pay low or no […]
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 […]