Many investors will not enter NAKED Short Puts (or Cash Secured) due to the level of risk in this trade or their inability to watch the stock market each day. What is the risk? Let’s go over an example to figure it out. Myriad Genetics, Inc [MYGN] gave their quarterly […]

Are you ready for 1Q earnings? Each quarter publicly traded businesses post their earnings for the quarter. We are coming up on the end of first quarter of 2014. It has been a challenging quarter. The craziness in Ukraine caused some uncertainty. The colder than normal weather is being sighted […]

Recently a member asked me to explain in-the-money (ITM) and out-of-the-money (OTM). I am a bit embarrassed to say that my first thought was how hard is that. Then I remembered that I struggled with it when I was a new member learning about options. There is a great deal […]

Here it is, the last day of February 2014. I cannot help but wonder “who” was born on February 29th. Hmmm, if I was, I would be only 16 years old. Would I have counted the year as another one that made me older, since there was no birthday unless […]

Time to “Sow” Those Credit Trades Again – Part 2 My last blog was at the end of January when the markets were in pullback mode. The pullback that started at the beginning of the year was quick and sharp, paralleling the “few and far between” pullbacks this bullish market […]

I have a reputation of being a perma-bull. I usually see the bright sight of things. It has worked very well for me for the past five years. However, even this optimist sometimes sees the clouds on the horizon. Here are the five reasons why: 1) The January Barometer

Recently my wife and I were talking about a Bible study she attends every Tuesday morning. I have spoken at length with the person leading the Bible study so I had a good idea of where the study would go. While I enjoy every conversation I have with this person […]

“There is a time to reap and a time to sow” – an adage we have all heard before. While it is applicable in many areas of our lives, it is particularly pertinent to the business endeavor of buying and selling options instruments. Understanding the mechanics of these instruments helps […]

My investing began in 1990 when I received a Welcome book from Investor’s Business Daily. I was lured toward growth-stock investing by William J. O’Neil. During that decade, when I was actively working outside of the home, I made every effort to follow the Can Slim Rules and Guidelines. By […]

I recall a particular situation several years ago on CROX. My due diligence indicated that the equity was overpriced and was due for a pullback. Sales were declining, the fundamentals were terrible, but the stock was rising. It was clear to me that the stock was going to trade lower.