200704-24

A postulate of sound investing is that an investor does not pay more for an asset than its worth

200704-25

Chartists believe that prices are driven as much by investor psychology as by any underlying financial variables

200704-26

The rate of return required by equity investors in the firm

200704-27

In the light of the major changes in investment and financing policy, if future cashflows reflect the expected effects of these changes

200704-28

The analysis can be done purely from the perspective of equity investors

200704-29

A good investment, we argued, is one that makes a return greater than the hurdle rate

200704-30

The way in which these assets are valued depends upon the way the investment is categorized and the motive behind the investment

200704-01

A Brief History of Mutual Funds and Exchange Traded Funds

200704-02

Mutual fund mangers make a fortune

200704-03

One of the amazing new product success stories is the exchange traded fund (ETF)

200704-04

What Is an Option and How Does an Option Work? Rights of an Option Owner

200704-05

When the Chicago Board Options Exchange (CBOE) first listed call options on individual stocks

200704-06

Options offer an investment alternative. Instead of buying stock, you can gain control of those same 100 shares by buying a call option

200704-07

Some investment gurus advise their clients to buy options

200704-08

Writing out-of-the-money calls is the most bullish (and aggressive) covered call writing option strategy

200704-09

You must wait until next Monday morning to find out if you have been assigned on your call options

200704-10

This strategy is more conservative than writing options with shorter expirations because you receive a higher option premium

200704-11

If the stock price is above the strike price, then the put option expires worthless and you are under no further obligation to buy stock. Your profit is the cash you received when writing the option

200704-12

The investment objective is eventually to be assigned an exercise notice by the owner of a covered call option you write

200704-13

Buy and maintain ownership of a portfolio of stocks that mimics the S&P 500 index

200704-14

Writing options on each ETF requires paying another commission

200704-15

You can modify your investing strategy every time an expiration day arrives, seeking a system for writing covered call options

200704-16

That means the total option premium is equal to the options intrinsic value, and there is zero time value

200704-17

If the trades illustrated feel right, you can begin your option writing program by adopting a similar style

200704-18

I maintained my overall style by writing VTI and MDY options as close to the money as possible

200704-19

All my options expire worthless. Next month I'll be in position to write ATM options again

200704-20

When trading options, you are at the mercy of how options are priced in the marketplace

200704-21

Neither position is riskier than the other, regardless of well-meaning investment advisors who tell you that writing naked options is dangerous

200704-22

If you find the spread between the option you are short and the option you plan to sell is attractive

Archives
Forex Trading. Currency markets

Day Trading. Stock Investing

Trading Stock. Buffet. Investment

Intraday Trading. Profitable Investments

Swing Trading Signals. Invest in Stocks

Money, Finance, Power, Inflation

Previous Issues

200703

The key to profitable investing

200702

Small stocks are running up, with large bounces at bottoms

200701

Institutional traders are raising cash and selling stock

200612

The first mistake: investing without a plan. The second mistake: using the wrong investment strategy

200611

Does the speculation in stocks ever disappear

200610

I have chosen not to make a profit in trading

200609

The greater the cash flow, the greater the opportunity for strategic growth