An exchange-traded fund (ETF) is a collection of assets that track specific investment categories. For instance, SPY tracks the S&P 500. ETFs can also track sectors and industries, such as energy and technology. ETFs often support options, but is it a good idea to trade options on ETFs? ETFs may be less risky than holding […]
You will likely hear about technical analysis during your trading experience. Technical analysis is a discipline that uses stock prices to determine signals on when to trade. Many people swear by the practice. Others equate it to sorcery. While it may work for determining signals for stocks, can technical analysis help your options trading? A […]
With round lots of 100 shares becoming less important these days, we are seeing fewer stock splits it seems. There are a number of stocks that are trading above $200 a share and that is something we didn’t use to see very often — at least not when I first started studying the market, but […]
Anyone in the realm of finance or the stock market knows Warren Buffett. He is the billionaire CEO of Berkshire Hathaway and has been one of the world’s best investors for decades. That is why when he talks about warning signs of a potential crash coming soon, I pay attention. Warren Buffett has a market […]
When you buy a new car, you look for insurance on the car. Most states require some form of coverage, but it is usually worthwhile to have it. When you buy a home, lenders will require you to purchase homeowner’s insurance. While it doesn’t cover everything, it gives you some peace of mind. While many […]
Since the beginning of September we have seen the main U.S. indices drop. There are a number of possible reasons for the decline, but more importantly I expect the increased volatility will be with us through the next few months. Between the uncertainty about the virus and the impending election in November, I don’t see […]
Experienced investors have heard of now-bankrupt companies such as WorldCom and Enron. Both participated in scandalous accounting schemes. Neither company exists today, but each left a trail of losses that are still keenly felt. Many employees had their life savings in company stock quickly made worthless. The scandals involved tricks that these companies used and […]
When you hear talk of markets trending, people think of uptrends or downtrends. However, markets often get stuck in a trading range. This is the condition where there is no definitive direction. But, eventually, one direction or the other reasserts itself. The problem is knowing which direction will prevail. A few strategies can help in […]
How would you like to have an “edge” in the stock market? The vast majority of investors would love to find one, of course, and many constantly seek advantages to exploit. We are led, however, to believe that markets are efficient. This means that the price of stocks is determined by the current information available. […]
Options are nothing more than a contract with a specified premium, strike price and expiration date. Unlike buying and selling stocks or funds of stocks, options provide almost an endless number of strategies. Nevertheless, all options trading has two sides — calls and puts. Both are “sold” by an options trader. You sell a call […]
