Category: Investments
-
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…
-
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…
-
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…
-
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…
-
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…
-
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)…
-
Regulation T: What It Is and How It Impacts Margin Accounts
Margin accounts let investors borrow money from their broker to purchase stock. This leverage enables them to realize higher returns, but the same leverage increases risk. If the equity in…
-
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…
-
Are Buy-Write Funds a Good Hedge Against Volatility?
There are many different ways to minimize volatility in a portfolio, including diversification into multiple asset classes, but buy-write funds have become a popular alternative for stock investors looking to…
-
Transfers, IRA Rollovers, and 60-Day Rollovers
A while back, one of our clients called to inquire about our thoughts on the article, IRA Rollovers Ruling Stuns Advisers and Savers. After reading it, I can certainly understand how…