So you may have tried selling puts to generate extra income in your account, only to find that you now own shares of a stock that has traded lower. The put selling strategy includes selling put options that potentially obligate you to buy a particular stock at a specified price… Read More

During the past five years, global economic struggles took a particularly hard toll on shipping stocks. Not only did the industry see a dramatic decline in demand, there was also the challenge of a tremendous supply glut. A contraction in Chinese imports of raw materials was at least partially to… Read More

Don’t look now, but the homebuilder sector may be staging a comeback! The group has been largely avoided over the past several months due to concerns about rising interest rates. This summer, when it appeared that the Federal Reserve would taper its bond-buying program, mortgage rates began moving higher and… Read More

Shares of Burger King (NYSE: BKW) have been trading higher this year, largely due to a material shift in the company’s business. Three years ago, Burger King was taken private by 3G Capital, a private equity firm who saw significant potential value in the company’s franchise. At the time, Burger… Read More

U.S. refiner stocks are moving sharply higher following a dismal summer for the industry. A few short months ago, the group was facing significant challenges related to pricing spreads between crude oil and refining products. Rising tensions in the Middle East boosted global oil prices, and supply disruptions in North… Read More

U.S. refiner stocks are moving sharply higher following a dismal summer for the industry. A few short months ago, the group was facing significant challenges related to pricing spreads between crude oil and refining products. Rising tensions in the Middle East boosted global oil prices, and supply disruptions in North… Read More

Selling puts in your investment account can be a tremendous strategy for generating reliable income, while taking on less risk than more traditional income strategies like buying and holding dividend stocks. The trading approach is made possible by selling a put option to speculators who either: 1. Think that the… Read More

Selling puts in your investment account can be a tremendous strategy for generating reliable income, while taking on less risk than more traditional income strategies like buying and holding dividend stocks. The trading approach is made possible by selling a put option to speculators who either: 1. Think that the… Read More

Solar stocks remain at the top of my list of strong investment candidates as we head into the end of 2013. The industry staged a dramatic turnaround earlier in the year as a supply glut of solar modules finally worked its way out of the market and demand began to… Read More

We recently discussed how to calculate the rate of return for our put selling trades. No discussion of possible returns is worthwhile without looking at the potential risk we are undertaking. So today, I want to discuss how to evaluate the underlying risk in a put selling trade, which will… Read More

We recently discussed how to calculate the rate of return for our put selling trades. No discussion of possible returns is worthwhile without looking at the potential risk we are undertaking. So today, I want to discuss how to evaluate the underlying risk in a put selling trade, which will… Read More

Over the past few months, some interesting political developments have been affecting spot prices for fertilizers. In particular, the breakup of a cartel, which previously manipulated global prices for potash, has sent prices plummeting. The increase in volatility and the decline in price for producers like Potash Corp. of Saskatchewan… Read More

Traditional income strategies are supposed to be attractive to conservative investors. In particular, sectors with a high concentration of dividend-paying stocks (such as utilities and consumer staples) are often referred to as “widow and orphan” investments because they are safe enough for the most risk-averse investors. However, in today’s investment… Read More