Category: Investments

  • How the Wheel Option Strategy Works

    How the Wheel Option Strategy Works

    There are many different options strategies designed to generate an income. While covered calls are the most popular, traders may also use iron condors, butterfly spreads, diagonal spreads or calendar…

    Continue Reading

  • How to Roll a Covered Call

    How to Roll a Covered Call

    The stock market is inherently unpredictable and even low-risk strategies can be ruined by new information. For example, covered calls provide a convenient way to boost portfolio income, but there…

    Continue Reading

  • How Option Greeks Affect Covered Calls

    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…

    Continue Reading

  • Starting a Position with a Covered Straddle

    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…

    Continue Reading

  • Generate an Income from Credit Spreads

    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…

    Continue Reading

  • Buying Protection with  a Married Put

    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…

    Continue Reading

  • How Dividends Impact Option Pricing

    How Dividends Impact Option Pricing

    Dividend stocks are a popular way to generate income, but they also impact several other investment strategies. For example, dividends impact option pricing. Let’s say that an investor that’s selling…

    Continue Reading

  • What Are the Components of Asset Allocation?

    What Are the Components of Asset Allocation?

    It’s easy to see that many financial assets are highly correlated — especially large assets. If there is a new sign of an economic slowdown, investors expect the entire S&P…

    Continue Reading

  • Can I Trade Options on an Index

    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…

    Continue Reading

  • Can I Trade Options in an IRA?

    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)…

    Continue Reading