Money and Finance
Using margin is a topic that I understood the very basics of but not enough to be able to try and use. I hope this primer will help you out because I know it aided in my understanding. My main goal for using margin would be to sell more put options, i.e. naked puts, since I wouldn't have to only sell cash secured puts. A naked put is simply a put option where the cash doesn't have to be in the account to ensure that you can pay for the shares should the option be exercised. By using margin I wouldn't be required to hold the cash in the account and could sell more puts which I feel is a winning strategy since some 75% of options expire out of the money. Although that's a very debatable topic for some other post.
Read more »
- The Best Of Both Worlds: Put Options
Obviously the most important part about investing is finding the truly great companies that have the ability to grow profits and dividends for decades on end. Once you identify those companies through a qualitative analysis the next step I like to take...
- Selling Puts For Added Income
This morning Archer-Daniels Midland was trading at $26.97. Since I would like to get more into the stock with it trading around a 14% discount to my calculated fair value, I figured I would check out the potential option moves to make. The fair value...
- Option Strategy
I have 2 option strategies that I like the most and then a third that I don't have enough positions built up to think about at the time. 1. I like selling put options since you can essentially set your entry price and get paid a premium to wait for...
- Put Options Explained
A lot of people hear the word options with respect to stocks and think it's a high risk venture. While options are for everyone I feel they definitely have a place in a portfolio. I prefer selling put options to call options which I will explain why...
- Selling Puts For Added Income
It's about time for another look at possible put option moves to get a better entry price or for added income. All calculations are based off of the close from February 28, 2012. The current price for Waste Managerment is $35.20 giving a 4.03% current...
Money and Finance
What is Margin?
Using margin is a topic that I understood the very basics of but not enough to be able to try and use. I hope this primer will help you out because I know it aided in my understanding. My main goal for using margin would be to sell more put options, i.e. naked puts, since I wouldn't have to only sell cash secured puts. A naked put is simply a put option where the cash doesn't have to be in the account to ensure that you can pay for the shares should the option be exercised. By using margin I wouldn't be required to hold the cash in the account and could sell more puts which I feel is a winning strategy since some 75% of options expire out of the money. Although that's a very debatable topic for some other post.
Read more »
- The Best Of Both Worlds: Put Options
Obviously the most important part about investing is finding the truly great companies that have the ability to grow profits and dividends for decades on end. Once you identify those companies through a qualitative analysis the next step I like to take...
- Selling Puts For Added Income
This morning Archer-Daniels Midland was trading at $26.97. Since I would like to get more into the stock with it trading around a 14% discount to my calculated fair value, I figured I would check out the potential option moves to make. The fair value...
- Option Strategy
I have 2 option strategies that I like the most and then a third that I don't have enough positions built up to think about at the time. 1. I like selling put options since you can essentially set your entry price and get paid a premium to wait for...
- Put Options Explained
A lot of people hear the word options with respect to stocks and think it's a high risk venture. While options are for everyone I feel they definitely have a place in a portfolio. I prefer selling put options to call options which I will explain why...
- Selling Puts For Added Income
It's about time for another look at possible put option moves to get a better entry price or for added income. All calculations are based off of the close from February 28, 2012. The current price for Waste Managerment is $35.20 giving a 4.03% current...