This is a general investing concept. It means that when you are seeking more reward, you will be taking on more risk. In most option trading strategies you can infer the risk/reward by analyzing how much money is at risk vs. what you can make if the trade is successful.
When do we Invest in Real Estate Again?
The real estate market like all other asset classes is subject to the laws of supply and demand. When supply outstrips demand, inventory rises, prices fall and it takes longer for sellers to sell their homes. The longer it takes for a seller to offload his or her property the more likely they are to drop prices. Real estate unlike many other investments usually involves a significant cash outlay to purchase and sell; as a result there is a sizable carrying cost for holding real estate as an investment. Forget the flippers and the no document, no down payment sales, they are not investments in the traditional sense of an investment, they fall more into the class of so called investments called ponzi schemes.
New Position Insurance Tool on PowerOptions
Got a stock that is profitable right now and you want to lock-in that profit to guarantee it will stay no matter where the stock goes?
Altera (ALTR) Shares are on the Rise
Altera Corporation (ALTR) San Jose, California is the pioneer of programmable logic solutions, enabling system and semiconductor companies to rapidly and cost effectively innovate, differentiate and win in their markets. Altera combines the programmable logic technology originally invented in 1983 with software tools, intellectual property, and customer support to provide high-value programmable solutions to approximately 14,000 customers. New announcements include the corporation’s first quarter sales of $336.1 million, up 4% from the fourth quarter of 2007 and up 10% from the first quarter of 2007. First quarter net income was $83.9 million, $0.27 per diluted stock market share, up from net income of $65.5 million, $0.20 per diluted share, in the fourth quarter of 2007. So, when you are investing in stock options, these are things you want to look for.
Covered Call Investing: ’08 Democrat vs. Republican Analysis
Worried about your investments if your candidate doesn’t win in November? Whether the Internet savvy Obama, or the defense minded McCain prevails, you can protect yourself and even make money with covered call investing. Look over your portfolio segments. If a democrat wins and you own oil stocks, write covered calls on them with a strike price at or a little lower than the current market price. Since democrats are no friends of big oil, their constant negativity may drive prices down.
Computer Associates (CA) Intl. Inc. Q4 Revenue up 8%
Islandia, NY based Computer Associates International Inc. (CA) is one of the world’s largest independent software companies. They provide information technology management software worldwide. Their solutions include CA Project & Portfolio Management, which provides views into an organization’s investments, initiatives, and resources. Recent reports announced another solid quarter with the company making significant progress. Fourth quarter revenue is up 8 percent to $1.085 billion with fourth quarter GAAP earnings from continuing operations per diluted common share increases to $0.13 from $(0.04). Fourth quarter non-GAAP operating earnings per diluted common shares are up 10 percent to $0.22.
Top 10 Reasons to Invest with Covered Calls
No investment strategy is right for all investors. Investors should research and investigate alternative investment strategies. Listed below are ten reasons why an investor might consider using covered call investing as part of an overall investment strategy. 1. Supplement Income: – CD rates too low? Are stock dividends not producing enough income? Investors can write covered call options to supplement their income. Even on a stable stock, an investor could potentially receive a 6% annual return on their covered call premiums.
First Time User Experience with PowerOptions
Looking for ways to enhance the returns on your IRA or stock portfolio in these times of deflated stock returns and low interest rates? Selling covered call investing equity options is a conservative approach to squeeze out higher returns. When you sell covered-call contracts it gives the buyer the right, but not the obligation, to purchase your stock at the higher price. The seller of the covered call investing contract keeps the profits from the option premium and advances of the stock price. If the stock does not exceed the option strike price, the seller gets to retain the stock and the option premium. Investors can safely achieve 25% to 45% enhancement in their investment program.
Ten S&P 500 Covered Calls Return 3.9% in One Week
How does 3.9% average return in one week grab you? An investor investing in ten S&P500 high potential return covered calls on May 9, 2008 would have experienced a 3.9% return in just one week and would have outperformed the S&P500 by 1.1% (S&P500 return was 2.8%).
Monsanto (MON) Sees Second Quarter Profit Surprise
Saint Louis based Monsanto (MON), a leading seed company, announced a strong second quarter profit. In fact, the earnings release showed profit more than doubled from the previous year’s second quarter. The news was inspiring to stock trading and many investors added the company to their trading portfolio. Some analysts noted the company’s 2008 earnings forecast in their lists of stock warning signs. Monsanto earned $1.13 billion during the quarter which ended February 29, or $2.02 per share. This was up from $543 million or 98 cents per share from the previous year’s second quarter. A strong 45% surge in revenue, from $2.6 billion to $3.8 billion was a big contributor to the company’s growth. Corn seed, one of the company’s leading products, saw $1.7 billion in quarter revenue, up from $1.2 billion the year before.