Everyone's Blog Posts - GlobalRisk community
Options: Complex Is Not Always Better
Even the most experienced option trader can benefit with an occasional reminder: The most basic strategies often are the best, all depending on the situation and what you hope to accomplish with the option position.
Just mastering a complex strategy does not include the requirement that you abandon the basic ones that might work better. For example, do the conditions can for a long call or put, a covered call, or an insurance put? Admittedly, these are not the most exciting options…
Police offer 18 Burglary Prevention Tips
To help keep your home and property safe from crime, the New Castle County Police Department provides the following guidelines:
- Sounds like a no-brainer, but so many people do otherwise: Keep your doors locked at all times. People will actually go to sleep with the front door unlocked.
- Doors should be locked with a deadbolt that has at least a one-inch throw.
- Keep windows locked. People have been known to leave a window open overnight in their…
Options - The Installment Collar
The collar can be expanded to create a truly creative variety. The traditional collar (own 100 shares, sell 1 covered call, and buy 1 put) can be turned into a long-term protective version:
- buy 100 shares
- sell one very short-term covered call, maximizing annualized income as the result of time decay, picking a strike higher than the cost of your stock
- buy one long-term put (8-10 months)
This accomplishes a relatively high rate of…
Global Derivatives: $1.5 Quadrillion Time Bomb
Enrique Suarez Presenting:…
“Buying Countries”, No Capital Controls for Oligarchs: Billionaire Warren Buffett Buys Greek Island
Enrique Suarez Presenting:
“Buying Countries”, No Capital Controls for Oligarchs: Billionaire Warren Buffett…
Options: Annualizing Covered Call Returns For Consistency
When writing covered calls, it's important to accurately compare one expiration to another, to make certain that your analysis is accurate based on both rate and time. You can compare annualized returns under the following guidelines:
1. Make all yield comparisons to the strike. Use the strike for consistency, based on the rationale that if exercised, the strike will be the price at which you sell shares. Alternatives are to base the analysis on your stock basis or current price, but…