Online Stock Trading Software

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.

Stock Option Trading News

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?

Stock Option Trading News

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?

Stock Option Advisory

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?

Stock Option Investment Advice

Bearish Covered Calls on Short ETFs

The financial talking heads and pundits have been saying for some time now that the stock market is destined to take another nosedive in the near future. Time will tell whether their short-term predictions are correct or not, but the stock market is cyclical, so there will always be ups and downs, which causes problems for investors using the covered call investing strategy.

Stock Option Trading News

Making Money with Covered Calls Even When the Stock Goes Down

Investors in stocks naturally like it when stocks are on the upswing, but don’t like it when stocks are sliding downward. One way to cushion the downside is with an in-the-money covered call investing strategy. Generally, investors consider covered calls as limited return on the upside with a lot of exposure to the downside. However, in-the-money covered calls can provide monthly income while also providing downside protection.

Online Stock Trading Software

Making Monthly Cash Income with Covered Calls Options Investing

Mention the term covered call investing strategy, and many investors picture limited upside potential, with the potential for making a small profit. These investors may also consider the real beneficiaries of the covered call investing strategy to be the sellers of the call options who benefit handsomely when the price of the stock increases significantly.

Stock Option Advisory

California’s Debt & IOUs – What a Mess – How to Protect Your California Investments with Put Options

The state of California is in financial distress. Unlike its municipalities, California cannot seek protection under the United States Bankruptcy Code (“Bankruptcy Code”). The state will have to address the crisis through a range of non-bankruptcy options. State issued IOUs will have to be paid. Contractors may be amenable to renegotiating their contracts. Perhaps the arrival of “stimulus package” funds will alleviate some distress. Debt will be reduced by agreement, in some cases, and refinanced or extended in others.

Stock Option Investment Advice

Economists’ predictions: Is the recession over?

Although the recession began in December 2007, the first very public casualty came in September 2008, with the collapse of Lehman Brothers (LEH). Subsequently, between September 2008 and March 2009 the U.S. economy contracted by 5.5% and consumer prices plummeted by 12.4% in the final quarter of 2008. However, since the 1940s, recessions in the United States have typically existed for approximately a year. Furthermore, there are already symptoms of recovery. For example, consumer prices have increased by a 2.2% annual rate for the first quarter of 2009.