With round lots of 100 shares becoming less important these days, we are seeing fewer stock splits it seems. There are a number of stocks that are trading above $200 a share and that is something we didn’t use to see very often — at least not when I first started studying the market, but […]
When you buy a new car, you look for insurance on the car. Most states require some form of coverage, but it is usually worthwhile to have it. When you buy a home, lenders will require you to purchase homeowner’s insurance. While it doesn’t cover everything, it gives you some peace of mind. While many […]
Since the beginning of September we have seen the main U.S. indices drop. There are a number of possible reasons for the decline, but more importantly I expect the increased volatility will be with us through the next few months. Between the uncertainty about the virus and the impending election in November, I don’t see […]
When you hear talk of markets trending, people think of uptrends or downtrends. However, markets often get stuck in a trading range. This is the condition where there is no definitive direction. But, eventually, one direction or the other reasserts itself. The problem is knowing which direction will prevail. A few strategies can help in […]
Options are nothing more than a contract with a specified premium, strike price and expiration date. Unlike buying and selling stocks or funds of stocks, options provide almost an endless number of strategies. Nevertheless, all options trading has two sides — calls and puts. Both are “sold” by an options trader. You sell a call […]
The consensus on options trading is that it is risky for the average investor. You’ll likely hear stories about people losing large sums of money in the options market. This sentiment about options being risky can be warranted. However, it often comes from a lack of understanding about how the options markets work. This article […]
When you begin trading options you’ll spend part of your research scanning for the right options to buy. When you find a list of options, then you’ll need to learn how to read the quotes to pick the right one. Quotes on stocks are simple. They involve entering the ticker symbol of the stock into […]
Selling put options can be a great way to help increase the value of your portfolio without taking on too much risk. At its core, a put sale allows investors to get paid to potentially buy shares of a company they like at a price they like. But what if you have no interest in […]
Most people often have a notion of what volatility means. They understand, at least conceptually, that it has to do with data of situations that vary over time. Weather is one example. Investments are another. Volatility when applied to the stock market is a fuzzier concept to many. It is one of the main factors […]
You may have heard it before. When you buy an options contract, you obtain the right to buy (for calls) or sell (for puts) shares of stocks before a predetermined period. You are not required to buy or sell, however. The price that you buy and sell is known as the strike price. The predetermined […]
