Category: Income Investing
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How Option Greeks Affect Covered Calls
The concept of a stock option is fairly straightforward: It provides the right or obligation to buy or sell a stock at a specified time and price. Of course, the…
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Starting a Position with a Covered Straddle
There are many different option strategies that investors can use to generate an income. While covered calls generate an income from an existing long stock position, a covered straddle can…
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Generate an Income from Credit Spreads
Income investing is popular among investors in or approaching retirement, but there are few good choices during periods of record-low interest rates. Exchange-traded options provide an easy way to generate…
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How to Construct a Collar Option
Covered calls are a popular way to generate income from an existing stock position, but they aren’t the best choice for every situation. For instance, covered calls have significant downside…
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Buying Protection with a Married Put
The stock market is known for rising during both times of euphoria and fear. For instance, the stock market hit record highs during the COVID-19 pandemic despite extremely high levels…
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Can I Trade Options on an Index
Passive investing has exploded in recent years. Investing in broad-market indexes has surged in popularity and costs less than ever before. You can take this approach to the next level…
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Can I Trade Options in an IRA?
Many individual investors wish to utilize options trading to generate income but are unsure of whether or not they can trade options in an IRA. Most individual retirement accounts (IRAs)…
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Bond Ladders vs. Bond Funds: What’s Right for You?
Many retirement investors are interested in bonds because they are both safer and more predictable than the stock market. Bonds pay out interest payments on a regular basis, and if…
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Dividends Play a Big Part in Performance
Many investors fail to appreciate the substantial impact that dividends have on stock performance over time. According to Hartford Funds, more than 80 percent of the total return of the S&P…
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How to Find Covered Call Opportunities
Covered calls have become one of the most widely used option strategies for generating income. While simpler than most option strategies, finding the right covered call opportunities can be challenging—especially…