Activist investors have the ability to influence significant changes in companies that they take an interest in, often leading to increased profits, boosting investor confidence, and ultimately, driving stock prices higher. In practice, an activist typically buys a large block of shares and then uses this ownership as leverage to… Read More

Activist investors have the ability to influence significant changes in companies that they take an interest in, often leading to increased profits, boosting investor confidence, and ultimately, driving stock prices higher. In practice, an activist typically buys a large block of shares and then uses this ownership as leverage to… Read More

The covered call strategy can be a very lucrative approach to investing, especially during periods of uncertainty, when most traders are lucky to simply maintain their capital base. As a brief overview, this strategy includes buying a stock and then selling call options against the position. For selling the call… Read More

The covered call strategy can be a very lucrative approach to investing, especially during periods of uncertainty, when most traders are lucky to simply maintain their capital base. As a brief overview, this strategy includes buying a stock and then selling call options against the position. For selling the call… Read More

The solar industry has experienced a dramatic turnaround over the past few quarters. Less than a year ago, solar stocks were trading at multi-year lows, as overcapacity in the industry, a supply glut and negative profit margins depressed investor sentiment. Several key solar manufacturers were forced out of business, despite… Read More

As the U.S. economy continues to gradually improve, investors are adjusting to the environment and making strategic capital allocations for the new year. One of the themes that I am expecting to play out this year revolves around higher interest rates and the effect that these rates will have on… Read More

As the U.S. economy continues to gradually improve, investors are adjusting to the environment and making strategic capital allocations for the new year. One of the themes that I am expecting to play out this year revolves around higher interest rates and the effect that these rates will have on… Read More

For traders focused on generating reliable income from their investment accounts, one of the best strategies is selling puts on stocks that they would be willing to buy at a discount to the current price. Investors can generate annualized returns of 10% to 30% or more simply by selling puts… Read More

Time decay is an issue that affects all option traders. Depending on your strategy and the actual positions in play, the concept of time decay is either working against you or to your advantage. All things being equal, the value of call options and put options decline as they approach… Read More

U.S. oil refiners moved steadily higher in the second half of 2013, following a dramatic shift in pricing dynamics for energy commodities. Over the summer, oil prices rose as tensions in the Middle East increased the risk premium, and supply disruptions in North America added additional challenges for U.S.-based refiners. Read More

They say that every challenge can be viewed as an opportunity. Nowhere is that statement truer than in the options market. You see, option contracts thrive during periods that wind up being very challenging for traditional stock traders and investors. And there is a logical reason for this. Why Options… Read More

Most investment academics will tell you that the market is “efficient.” These scholars believe that there is no reliable way to generate an “above market” rate of return without access to information that is not available to the public. This efficient market hypothesis rests on a key assumption. This assumption… Read More

When a trading strategy requires the use of options, it’s very important to understand how option prices will react to changes in the underlying security. At first glance, option pricing can appear relatively simple. The price of a call option increases as the underlying stock (or ETF) goes up, and… Read More