Accredited Investing Education

Posts by Charan Singh

Not Including Possible Dividend Risk

My last post on the topic of dividends and options explored the terminology of dividends and common questions relating to options trading. In this post, we will understand step-by-step what exactly is meant by ‘possible dividend risk’ when trading options. To illustrate the process, we will use a recent SPY trade that was influenced by…

Read More

The Influence of Dividends on Call and Put Equity Options

Introduction Regular and special dividend payments influence the price and the possibility of assignment on options. Although the impact of an ex-dividend date on an option position is usually relatively small, it is important to understand the dynamics of this process for options traders. First, let’s clarify the language in the dividend payment process. There…

Read More

Discipline – Determine Exit Points, Place Trade

Discipline in trading: Setting exit plans before placing a trade Developing a detailed exit plan is a key step before placing any trade. Whether you are buying a stock or trading options, it is imperative you have a written plan on to manage the trade in the future. Of course we need to know what…

Read More

How Often Do Options Get Exercised Early?

This is one of the most commonly asked questions about options. The short answer is that options rarely get exercised before expiration. To fully understand why this happens we need to first understand what the terms ‘exercise’ and ‘assignment’ mean in relation to options. Then we will work through an example to evaluate when a…

Read More

Options Traders Market View – Sell in May, you will pay

An important part of making investment choices is to understand the context for the market and our current position in the long term economic cycle. This is a discussion of my view of the US stock market today and its potential short-term direction. Today I will focus on recent market developments, including a look at…

Read More

7 Reasons to be Bullish Right Now and What I’m Doing About It

An important part of making investment choices is to understand the context for the market and our current position in the long-term economic cycle. This is a discussion of my view of the US stock market today and its potential short term direction.  Lets look at recent market developments, including a look at the S&P500…

Read More

How much stock should we put in the Consumer Confidence report?

Today we got a fresh look at the consumer confidence report for the month of September. The number is not much changed from August and is not really a surprise. There are persistent negative headlines in the media about the EU sovereign debt crisis, lower growth expectations worldwide and stubbornly high unemployment rate. To top…

Read More