The covered call strategy is a reliable way to generate income in your investment account on a monthly basis. Basically, this investment approach captures income by selling call option contracts, which speculators purchase in hopes that they will generate outsized returns as stock prices advance. By selling call options, we… Read More

Recently, I’ve received a few questions about how to manage risk when selling puts. The primary question is whether it makes sense to use stop-loss orders to exit a position if the trade moves against you. With this in mind, I thought it would be a good idea to analyze… Read More

While equities have been vulnerable to selling in 2014, precious metals have been in the process of rebounding. It seems a bit ironic that gold and silver prices would be rising at this point in the market cycle. After all, the Federal Reserve has been extremely dovish for years now,… Read More

Our put selling strategy is an excellent way to generate reliable income in your investment account, while giving yourself an opportunity to buy quality stocks at a discount price. As a quick reminder of how this strategy works, we sell a put option on an underlying stock that we would… Read More

Our put selling strategy is an excellent way to generate reliable income in your investment account, while giving yourself an opportunity to buy quality stocks at a discount price. As a quick reminder of how this strategy works, we sell a put option on an underlying stock that we would… Read More

It’s been more than two years since gold prices peaked. Since then, precious metal prices have been in a well-defined bear market despite the widespread belief that the Federal Reserve’s stimulus programs would naturally send them higher. Ironically, as the Fed finally begins to taper its bond purchasing program, precious… Read More

Many of you likely remember Crocs (NASDAQ: CROX) as the growth stock darling that ran up several hundred percent before falling like a stone and nearly having its shares delisted. A bearish collapse like this can become seared in the mind of any trader, causing many to swear off the… Read More

Over the last several years, the U.S. has experienced a tremendous boom in natural gas production. This increase is largely due to the widespread use of “fracking,” a process that involves fracturing rock formations and then propping open the fractures with a sand and water mixture. Shale rock formations that… Read More

There are a number of strategies available to investors that use option contracts to generate attractive levels of income. Two strategies in particular that have become popular with individual investors are selling covered calls and selling puts. These strategies can be implemented through traditional brokerage accounts, as well as through… Read More

The traditional covered call strategy is considered a neutral-to-bullish approach because profits are made when the underlying stock remains stable or trades higher. For this reason, most investors are more than willing to sell covered calls during periods when the market is generally rising, but the strategy often loses its… Read More

The traditional covered call strategy is considered a neutral-to-bullish approach because profits are made when the underlying stock remains stable or trades higher. For this reason, most investors are more than willing to sell covered calls during periods when the market is generally rising, but the strategy often loses its… Read More

The covered call strategy can be a very effective approach to boosting the amount of income you generate from your investment portfolio. In fact, when things are going well and the stocks that you use remain stable or increase in price, it is not unreasonable to target returns between 25%… Read More

The covered call strategy can be a very effective approach to boosting the amount of income you generate from your investment portfolio. In fact, when things are going well and the stocks that you use remain stable or increase in price, it is not unreasonable to target returns between 25%… Read More