Investing Secret: Getting Higher Returns with Covered Calls
- By: Grace Chen on 03/10/10
Would you like to capitalize on a little known and underused tool, which generates additional profits for your already existing stock purchases? Covered calls remain one of the best kept secrets in the investment world.
How Covered Calls Work
Covered calls are one of the best ways to generate extra income on your already existing stock portfolios. [...]
3 Covered Call Writing Tips for Passive Income
- By: Brad Castro on 12/27/08
For those unfamiliar with covered call writing, the strategy is fairly simple and straightforward.
In a nutshell, covered call writing is simply selling the right for someone else to purchase stock that you currently own (100 shares per contract) at a certain price (called the strike price). If the stock closes above that strike price, the [...]
The art of short interest
- By: Grace Chen on 05/05/08
As the market falls, many stocks are experience large amounts of unusually high short interest. The shorts have made there money in a few select stocks, which are bound to recover as the institutions start buying back stock to cover previous shorts.
Short interest for the contrarian
Short interest is one of the best tools a contrarian [...]
How to Leverage Your Investments with Stock Options
- By: Grace Chen on 03/03/08
Obtaining a margin account with your broker can be difficult. Credit checks, minimum balances and paperwork can make obtaining a moderate leverage of 2:1 nearly impossible for most investors. Brokerage firms are a tough sell for leverage, especially in today’s volatile markets and restrictions on day traders.
Deep in the money options
Luckily, deep in [...]
Chicago Board Options Exchange Guide to Options Trading
- By: TJP on 05/16/07
When I called my broker, TradeKing, asking for more information on options trading, the TradeKing representative pointed me to options tutorials at CBOE.
4 Tips on Buying Put Options
- By: TJP on 05/11/07
My next post in the Stock Options Trading Series will focus on put options tips. There is a lot of discuss about long calls & puts, so we will ignore the more advanced options trades for a while. Here are 4 tips on buying using my recent purchase of Amazon Inc. (AMZN) put options at [...]
Long Put Options Strategies
- By: TJP on 05/05/07
In the last part of options trading series, we talked about long call options, and how investors buy them to profit from bullish stock trends. Now, we’ll take a look at the inverse of call options, put options.
What Are Put Options
You make money on puts when the underlying stock price falls. The easiest way to [...]
Long Call Options Strategies
- By: TJP on 05/02/07
Purchasing or selling long call options is the simplest form of options trading to comprehend. It’s similar to buying long stock in a company, except that you either buy the right or sell the right to purchase the underlying shares in a company. Since call options are bullish to very bullish in terms of strategy, [...]
Stock Option Trading Series
- By: TJP on 04/30/07
I’m happy to announce a new series here on Investor Trip that’s dedicated to stock option trading. What inspired me to learn more about option trading was the recent characteristics of the US stock market.
As the Dow Jones passed 13,000 points, I spent more time researching ways to make money from losses in the [...]
Introduction to Options Trading
- By: TJP on 11/09/06
Options Trading is a great way to increase your stock returns without the extra risk of holding an actual security. Buyers can purchase the right to buy a stock at a specified price within a specified date range from sellers. The buyer and seller reach an options agreement price called a strike. If a buyer [...]
