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The FREE Investment Newsletter That Really Works!

1.31.2018 The letter is up! Bookmark

Hey everyone, today's free newsletter is up and today we're talking about Naked Positions. What's that you ask? It's when you sell a put option, for income. However there's risks involved. If you remember, when you buy a call option or a put option you are buying the "right" but not the obligation to buy a particular stock at a particular price. But, when you SELL an option you are now entering a legally binding obligation to do something if your trade goes against you. that costs money. 

 

So we discuss how they work, how they can be very useful and how to avoid the risks as best as possible. Then of course we talk about the current market, and mention some things we did when the market fell 300+ points Tuesday. Give it a read, it's decent stuff!

1.31.2018 - Free Investment Newsletter Bookmark

I promise that this is going to be the last options tutorial for a long time. Each time I think I’m done talking about them, several people will write in with questions about something I’ve mentioned. Last week I mentioned that along with buying call options and put options, the only other sort I’d recommend is the occasional “sale” of an option. So let’s explore that and see how it works. 

Naked positions

I’m going to wrap up our two week tutorial session about options. We’ve discussed what they are, how they work, ways to use them, etc. Today we’re going to end with one of the riskier aspects of options trading, called “selling naked”. While it is indeed more risky, meaning you have to really manage that risk, along with the risk comes big rewards. So, let’s get to it...

1.20.2018 - Options, the Mechanics of them Bookmark

In today's free investment newsletter, we discuss the mechanics of the simple call option. We talk about the time value, the intrinsic value, the strike prices and more. So many people have been scared off of trading options, as they've been told that they are incredibly dangerous creatures. Well I'm here to tell you that's a bunch of hooey. 

 

Options trading is not more dangerous than normal stock trading. The only big difference is that with an option, there's only a certain amount of time for that option to work. If you buy a stock and it goes down, you can hold that thing for 5, 10 , 20 years hoping it back up. With an option, what ever you wanted to see happen, has to happen before the "end date" that you've selected. 

 

It's called risk management. If you buy a call option against a stock and the option if fading in price, you have the ability to sell for a small loss and move on. Just like putting a stop on any stock you might trade. So, if you've ever been interested in these things, then by all means, give the letter a read. 

3.18.2017 - Financial Intelligence Report Bookmark

The Commercial/Selling a Put
 
I got an email the other day from a gent who was watching TV, and a commercial came on. In that “financial” based commercial, there was a conversation between a client and what appears to be either his broker, or advisor. In the flow of conversation, the advisor says to the client, “well we might consider selling a put...”  to which the client says something like “that’s an interesting idea.”

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