If you are starting your investing journey than you should consider the best methodology to achieve your objectives. Some popular theories include John Bogle suggesting to buy 50% in a stock index and 50% in a bond index. This is a set and forget move that only requires periodic rebalancing. I am sure this works …
Why don’t more people write covered calls? There are numerous reasons. The general population is unaware such an investment exists. Only a hand full of investing services promote them but popularity has increased as more brokers push option trading strategies these days. Also, they do require a level of education to learn them in depth. …
How do you measure the financial health of a business or public company? They are measured by the amount of cash flow they produce. All investors understand this concept as this leads to the earnings reported and financial strength of the company. Covered call investing provides a large amount of cash flow. There are several …
Many investors ask about the terminology of options and the difference between types of options. Here I share some background o the fundamentals of option trading. Bonus: An active option trade is shown below for our Covered Call of the Week. An option is a standardized contract originated by the Options Clearing Corporation (OCC) that …
To achieve financial independence, you must create multiple income streams to replace earned income. Warren Buffett states “You will work the rest of your life if you don’t make money while you sleep.” There is a simple method to position yourself for unlimited passive income. Now, the recently released book , “Passive Income Monthly Plan: …
Many investors ask about the fundamentals of options and the difference between types of options. Here I share some background on the fundamentals of option trading. Bonus: An active option trade is shown below for our Covered Call of the Week. There are both similarities and differences between stocks and options. Some think of options …
Stocks and Options: Similarities and Differences Read More »
Moneyness: Option Strike Prices Stock option strike prices fall into the three categories, depending on their relationship to the stock’s price (known as the “money”). This relationship to the “money” is known as moneyness. In the money (ITM) At the money (ATM) – this is used to refer to options near but not exactly …
Exercise and Assignment When a stock option is exercised, the call holder buys the stock, and the put holder sells the stock. When options are exercised, the OCC decides to which brokerage firm the exercise will be assigned, and the brokerage in turn decides which customer will get the assignment. When we are assigned an …
Option Premiums The premium is the price paid or received for an option. Options are traded much like stocks, with bid and ask prices shown: Seller generally receives the bid price Buyer generally pays the asked price Market maker makes or specialist keeps the spread between the bid and ask prices. An example: A …
As income investors, we are constantly seeking investments to secure income for our portfolios. The majority seek dividend through income stocks. At Get Rich Investments, we suggest a healthy dose of stocks that pay monthly dividends. In such a low yield world, these investments offering monthly dividends can prove to diversify your income opportunities. There …
How to Get a 40% Annual Yield for Monthly Income Read More »
