The expression “you can’t squeeze blood out of a turnip” refers to not being able to get something out of someone that they don’t have. Stock option trading can often feel like trying to squeeze blood from a turnip. However, with a little effort and some patience it is possible to squeeze blood from the stock option market.
Month: August 2009
iPhone, iPod, Kindle and Textbook and Ways to Invest with Stock Options
E-books are here to stay, as evidenced by the proliferation of e-book readers, apps for the iPod and iPhone, and even email subscriptions to books. As more and more books become available in electronic form, it’s only logical that textbooks would follow suit. On June 8, 2009 California governor Arnold Schwarzenegger announced an ambitious plan to implement digital textbooks in all California schools. Phase one begins this fall, using e-textbooks for high school math and science classes. Northwest Missouri State plans to go completely digital and has been running pilot programs since fall 2008. These early adopters believe e-textbooks are superior to print textbooks.
GM Selling Cars on eBay and How to Profit with Stock Options
Can the automobile industry become successful at selling new cars, online on EBay (EBAY), like other successful industries and individuals? The American iconic company General Motors (MTLQQ.PK) is changing its business model to include an online sales venue for new cars. The salespeople or really a web site will be there to help customers, 24/7, but customers won’t be able to kick the tires or take a test drive.
Make More Money with Covered Calls and With Less Risk
Mention covered calls and many investors think limited upside and big exposure to the downside. But, it’s possible to make more money with covered calls and do it with less risk. Covered calls investing involves selling a call option against an existing or purchased stock. The inherent nature of covered calls provides less risk than simply owing the stock outright, as a covered call investing position has downside protection and a stock does not. The initial time value and the amount a covered call investing position is in-the-money determine how much downside protection a call option provides. The larger the time value and the more the covered call investing position is in-the-money, the more downside protection provided.
Rolling Iron Condor Stock Options for More Return
Investors often consider the maximum potential return for an iron condor stock options position to be capped or limited, however, potential returns for iron condors can be increased after initial entry through rolling.
Pitfalls of Leveraged ETFs and How to Take Advantage of Them with Stock Options
Brokers are placing limitations on leveraged ETFs (Exchange Traded Funds) sales and in some cases stopping them completely. The Financial Industry Regulatory Authority (FINRA) has also weighed in, reminding brokers this past June to use caution when selling leveraged ETFs. What is the big deal with leveraged ETFs and why are their defenders and critics alike so passionate?
No More Naked Shorting of Stocks – Bearish with Stock Options
In September 2008, the Securities and Exchange Commission (SEC) instituted emergency rules to penalize short sellers who failed to deliver borrowed shares at settlement (naked short selling). These rules were set to expire on July 31, 2009, but on July 27, the SEC made them permanent. Why is this important?
What’s happening at Human Genome Sciences and How to Invest
The announcement that a clinical trial of BenlystaTM, the lupus drug from Human Genome Sciences, Inc. (HGSI), is showing positive results has sent the company’s stock soaring. This is good news for both lupus sufferers and investors, but can the company sustain its newly polished image?