Tuesday, June 22, 2021
I’m often asked, “what are stock options?” by some of my newer readers. Stock options are derivatives based on the value of the stock and offer the trader the opportunity to buy or sell the stock at a stated price within a specific time. The most common option trades, especially for beginners, are covered calls. […]
Buzzwords abound in today’s society: passive income, cash back rewards, and now free retirement stock. But are these buzzwords full of fluff, or is there anything investors can really benefit from here? We’ve all heard the saying “nothing in life is free.” And I’m sorry to report that statement still holds quite true. However, in […]
One-stock retirement. Those three words can stop you in your tracks, right? Is it a scam? A gimmick? Is it just click-bait? Well, not exactly. Over the years, several financial advisors floated this idea and once in a while it gets some traction. The concept suggests that investing modestly in just one stock could be […]
I am in the mood to ramble. (By that, I mean I’d like to share some thoughts about current broader themes affecting investing and the economy.) We have not seen this much uncertainty in the financial world since the Global Financial Crisis nearly 15 years ago. My work lets me follow the current financial news, […]
With the major U.S. stock indexes hovering around record highs, I often am asked about selling to lock in gains, and then waiting for the next downturn to reinvest. While I do not think a wholesale move into cash is the right move, I spend a lot of time considering what to tell my subscribers […]
Choosing stocks for retirement is very different from how most people invest in the stock market: searching for the next Amazon or trying to make some short-term profits. In the past, financial advisers often considered the stock market too risky for traditional retirement planning, recommending bonds as the main source of income. The common advice […]
When you think about, “What is options trading?,” many people will come up with words like “complicated,” “risky,” or “overwhelming.” But the truth is, trading options, especially the way professionals do it, can be one of the safest and most reliable ways to generate extra income for yourself and your retirement on a regular basis. […]
Last week Chuck Butler and I accepted a challenge from subscriber Charles F. “Describe life in the US 5 years into the loss of our currency reserve status. Winner, Losers, what does gov’t look like on different levels, our position in the world, let your imagination run wild. When I do this my thinking quickly […]
I get to communicate with a lot of investors. Many express fears about a potential stock market crash, primarily triggered by eyeball-seeking financial news sources. Sure, investors should plan for the next market downturn…but to use a fighter pilot expression, pulling the ejection handle is not the answer. After graduating from the U.S. Air Force […]
When buying options, it’s generally a good idea to keep the capital outlay to a minimum whenever possible, because options typically lose value at a regular rate due to time decay. As such, minimizing the option premium paid (the cost) is essentially the same as lowering risk. Using vertical spreads is one way to take […]
