by Dave Scott | Investing 101, Investing Strategy, Options
A vertical bull spread is an income-generating options strategy suitable for when investors are bullish and expect underlying shares to rise substantially in the near term. A vertical bull spread typically involves a long-short paired trade, using either puts or...
by Dave Scott | Derivatives, Investing 101, Options
Everyone thinks financial derivatives are weapons of mass destruction… and to a large extent they are, especially if they fall into the wrong hands. But if used with caution, derivatives and options can be handy little tools for incremental wealth creation....
by Michael Barton | Derivatives, Options
Plenty of investors hold shares that hardly seem to move. I’ve held them myself. The stability is relaxing, the lack of profit punch frustrating. And holding a stock that’s range bound, or trading through a period of consolidation, harms your comparative return during...
by Ray | Investing, Options
So far we have discussed Understanding Options and Using Options as Insurance, in here we’ll look at how we can use options to increase our profits. Previously we looked at how we can use options as an “insurance” policy to limit our losses, but options can also be...
by Ray | Financial Planning, General Finance, Investing, Options
We have covered the basics of what options are and how options work so now let’s take a look at some simple strategies using options. Options can be used as an insurance by locking in either a buy or sell price the investor protects himself against major price...
by Ray | Investing, Options
This is a mini series on Options, do not take any of this as advice or recommendation for buying or selling options. We will cover some basics of options, what are options? how do options work? and we’ll look at just a few simple options strategies in the next...