Today is options expiration for April contracts. Unless something unexpected happens, we are going to recognize the maximum gain for both of the April covered call setups that I recommended roughly a month ago. Heading into the last trading day before expiration, we own Big Lots (NYSE: BIG) and Family… Read More
Call & Put Option Sells
It was an ugly start to the week for gold stocks. On Monday, the price of gold dropped more than 8%, silver more than 12%, and precious metals miners took it on the chin as well. News from Europe appeared to be the primary catalyst for the sell-off. The central… Read More
It was an ugly start to the week for gold stocks. On Monday, the price of gold dropped more than 8%, silver more than 12%, and precious metals miners took it on the chin as well. News from Europe appeared to be the primary catalyst for the sell-off. The central… Read More
Large-cap dividend payers are usually thought of as safe stocks. These are typically companies in an industry with loyal customers, like drug companies or phone companies. But while this may have been a sound strategy for generating income in the past, some large-cap, high-yield stocks could deliver large losses to… Read More
Japanese stocks have been one of the hottest markets in the world during the first few months of 2013. Stocks in Japan peaked in 1989, but recent political changes have pushed them up by almost 30% in the past 10 months, and nearly 15% since the beginning of the year. Read More
Materials stocks have mostly missed out on the broader market rally during the past year, which has taken the S&P 500 index almost 17% higher. In stark contrast, United States Steel Corp. (NYSE: X) is down about 34% over the same period and is trying to base out at key… Read More
With the market becoming more volatile, our covered call strategy is becoming more attractive for two reasons: Higher volatility naturally boosts the price of option contracts. So as we sell calls against our positions, we receive higher premiums (giving us better annualized returns). As the risk of owning… Read More
The fight over the fate of nutritional supplements multi-level marketing company, Herbalife Ltd. (NYSE: HLF), has been deemed a “Battle of the Titans.” Billionaire investors, most prominently Carl Icahn (for) and William Ackman (against), have taken massive positions. While either could end up being right depending on the time frame,… Read More
The fight over the fate of nutritional supplements multi-level marketing company, Herbalife Ltd. (NYSE: HLF), has been deemed a “Battle of the Titans.” Billionaire investors, most prominently Carl Icahn (for) and William Ackman (against), have taken massive positions. While either could end up being right depending on the time frame,… Read More
Defensive stocks are always popular among conservative investors. These are stocks that are believed to have some degree of immunity to the business cycle. Consumer staples are favorites of defensive investors because consumers will always need the products sold by companies like Procter & Gamble (NYSE: PG). Utility stocks are… Read More
It’s been a disappointing winter for gold bulls. Despite the Fed’s promise to keep rates at historical lows and to pump liquidity into the economy, precious metal prices have been trading steadily lower. This may be due to the fact that all the good news was “priced in” a year… Read More
Financial plans usually look best in theory. They are developed based on the numbers and almost always ignore the emotional challenges that will be required to follow a plan. In reality, it can be difficult to add to stock market holdings when major market indexes are setting new all-time highs. Read More