Category: Stock Option Advisory

Because the financial meltdown has happened so close to a presidential election, the partisan spin-masters are working overtime to capture the public’s perception of who is to blame. The Democrats are blaming the Republicans for de-regulation. The Republicans are blaming the Democrats for propping up failing government-sponsored programs. The mortgage industry is blaming consumers for making poor financial decisions. The consumers are blaming the mortgage companies for issuing loans that could not be maintained.

The world is now focused on the state of the American economy and more specifically, on Wall Street. America’s current crisis is the ultimate trickle down, economic theory. The housing meltdown created solvency issues, within the banking industry, when borrowers defaulted on mortgages. The construction industry continued to borrow to build more housing, leaving a glut in unsold properties and a further insolvency issue in the construction side. Many of these mortgages were underwritten by insurers who bet (and lost) that the mortgages would go to term and not enter bankruptcy proceedings. Wall Street firms bet on bundled packages of mortgages that were traded as if they were commodities, hoping for exorbitant profits on ARM (Adjustable Rate Mortgages) and Sub Prime Loans. Mutual funds bought into firms that touted profit margins that simply weren’t there or sometimes, allegedly, were fraudulently promoted. Investors, fearing the aforementioned insolvencies, withdrew millions from affected…

The energy sector has never been more volatile and exciting than it is today. Recently oil prices dropped from $145 to around $100 a barrel. But, the roller coaster is just beginning. Many analysts predict that prices will rise and fall many times in the next couple of decades. As we seek to find alternative fuels and energy sources, there’s still a lot of money to be made on oil. With stock options as insurance against loss, you can trade these exciting stocks and increase your portfolio. To limit damage from a dramatic decrease, stock investors can purchase put stock options, a married put is an example of a put option position. As the price of a stock investing position decreases, a put option‘s value increases, limiting a loss for the underlying stock. Additionally, investors can hedge their stock positions with covered calls. A covered call investing position can provide…

Index stock options create investment opportunities for investors who wish to take advantage of market moves, as well as protect existing holdings. Offering known risk, the premium set by a long index option ensures the investor will not incur losses exceeding the purchase price of the index option. Investors can also take short positions with index stock options, but with the potential for unlimited loss in many cases. Additionally, an index credit spread stock options position, short an index option and long an index option with the same expiration month, gives investors an opportunity to pursue leveraged investments without paying interest fees for margin as with other leveraged strategies. However, the risks associated with credit spreads on indexes must be carefully considered.

With a weak economy, most companies are scrambling to remain afloat. But those firms who work for the federal government are still enjoying the bounty of recent contracts. The top nine companies who provide the government with critical defense work are (2007 data).

Over the previous ten years the following stocks have shown incredible returns on investment, and are poised to continue this trend in the future. Long-term investments like these are great for options trading, because you can make constant income while you are waiting for that big upward price move.

The greatest investors leave clues. When investing, investigate the clues left by the all time greatest investors. 1. Warren Buffet Investment style: Long-term growth Best investment: Coca Cola, 1988 Buffet began investing in 1954 with just $100. Now worth over $20 billion, Buffet invests largely in media, insurance, and consumer companies. Buffet recommends thinking like a prospective owner and sticking to businesses you understand. According to Buffet, great businesses possess simplicity, predictability, high returns, and strong cash generation.

As energy related companies and governments search for alternative energy and fuel sources, the demand for clean energy, solar power, wind power, and electric/hybrid vehicles will continue to increase.

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?

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.