Chart copyright Trusha Desai Innovation Management Inc. Buying a call option is an effective investment strategy in a bullish market. However, are we always certain of the direction of the market or the underlying? Even if we study the fundamentals and technical, read the insider reports, estimate the earnings, trend the dividend growth and peruse the analysis reports for good measure, there is no certainty in life. I guess Warren Buffett will definitely tell you that, for Be
Chart courtesy optionstradingbeginner.blogspot.com If you have an investment strategy of buying calls, it suggests that you are bullish on the stock. What would your strike price be? What would your expiration date be? Keeping in mind the Greeks, such as theta (time value) and our understanding thereof, we may decide to buy calls that expire three months, six months or a year from the current date. We needs must remember that call options that have a twelve-month expiration p
Something that millennial millionaire investors may not know about is the phenomenon called Sell in May and go away. For we do not know go away. Not per se as in the olden days of vanishing off the face of the earth for a week or more: incommunicado, out of bounds, no mail, no phones. And of course, before the advent of email. Now, whether we are at a beach or at the cabin in the mountains, we are perennially in touch. God forbid if we do not instantly respond to that email t
Chart courtesy marketwatch.com/investing For all those social media fanatics who use $TWTR to air their opinions, follow others, or promote their content, it might be a matter of interest that this stock was at its peak (since inception) on January 3rd 2014 at $69.00 while today, though it has increased by 2.08%, stands at $17.16. If you were of the buy-and-hold ilk, this might have hit you hard. Just as the stock bubble caused in part by the technology sector of 2008 hit man
While the $DOW and $TSX are closed for a long weekend, this is an opportune moment for us to evaluate our long-term and short-term financial priorities. TFSA or RRSP is the question in some minds as RRSP season is at its peak. If we have not enrolled in monthly RRSP investment that would enable us to obtain the benefit of dollar-cost averaging, now is the time to get in by a hoof. With the volatility of the stock market pre-eminent in our radar, we should think of various hed
In order to be polite ... as Canadians are, eh? We say that January 2016 has been "interesting". Record high snowfalls in Washington D.C. and New York. Record falls of the DOW. Not quite a recession. Not yet a recession. For what we have observed on the stock market over the past few months has been remarkable volatility. How that will translate onto the economy is the question: only the balance of the year will tell, soothsayers or not. Business watches the stock market jitt
When it’s triple witching hour, the last hour of trading on the NYSE on the third Friday of the last quarter, fortunes can be lost or made. Stocks could be assigned below market value and if you are a vanilla sort of person, you should not be intrepid if expiration price is below market price. Gobble-dee-gook if you are not into options. However, if you can bandy some phrases like in the money, out of the money, near the money and ah! Yes! Those Greeks really have me stymied!