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  • How To “Write” Covered Calls For Safe 8% Yields

    How To “Write” Covered Calls For Safe 8% Yields

    Most investors buy stocks and hope they’ll go up in price. They do nothing in the interim to generate cash flow from those stocks while they sit in their portfolio – like writing covered calls. “Write” what? I’ll explain. And I’ll also highlight some popular exchange-traded funds (ETFs) and closed-end funds (CEFs) that will help […]

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    | February 24, 2017 | 0 Comments

Options Trading Strategy

3 Naked Puts That Let You Keep Your Shirt

3 Naked Puts That Let You Keep Your Shirt

Sell these naked puts and deposit $1,000-plus in your bank account With options expiration upon us — or at least the monthly version of it — it’s a good time to look at selling naked puts for March expiration. If possible, I like selling naked puts about a month out, because if I can get […]

The High-Probability Earnings Trade You Need To Make

The High-Probability Earnings Trade You Need To Make

Watching how earnings reports can affect the share prices of stocks, sometimes sending them sharply higher and lower, doesn’t always have to be a nerve-wrenching event. With a simple options trade, that you can easily place in five minutes, you can profit from a big move down or up in the stocks you follow.  We’re […]

3 Naked Puts On High-ROI Stocks

3 Naked Puts On High-ROI Stocks

Here’s a different way to calculate returns on these generous naked puts This week I’m going to do something a little different as I discuss naked puts. First, let’s remind ourselves what we’re up to with naked puts, which will be an important piece of my forthcoming stock advisory newsletter, The Liberty Portfolio. With naked […]

Do Not Buy This Undervalued Retail Stock

Do Not Buy This Undervalued Retail Stock

But, by using the simple options trade detailed here, you can earn an easy 7% return in just three weeks. That’s more than most dividend investors get paid in an entire year!  HIGH PROBABILITY 7% potential return in three weeks BUY American Icon single-digit SEARS another 19% lower or get paid not to… This option […]

Commodities Rally Makes This Trade Great Again

Commodities Rally Makes This Trade Great Again

Having already moved up quickly in 2017, commodities like copper and gold look like they will have a breakout year. Here’s the one stock you want to trade for unlimited upside by June. We’re barely two weeks into 2017, and it’s already clear that commodities could play a bigger role in the financial markets than […]

3 Naked Puts To Make A Safe $1,000

3 Naked Puts To Make A Safe $1,000

You can generate $1,000 in cash this month selling these naked puts Here we are in 2017, and just about to hit our first monthly expiration date. That means it’s a good time to cast our lines for naked puts that expire in February. Of course, that also means we need a quick reminder about […]

Options Trading Basics

Mean Reversion: What Stocks And NFL Teams Have In Common

Mean Reversion: What Stocks And NFL Teams Have In Common

By studying the long-term performance of professional sports teams, investors can gain a sense of a stock’s future returns. Mean reversion controls stock market returns as much as the outcome of sports competitions. It’s easy for sports fans to assume a championship team will continue its stellar performance into the next season. It’s equally easy for investors to extrapolate a […]

Key Metrics: Price To Sales Ratio

Key Metrics: Price To Sales Ratio

Today I want to take an in-depth look at what James O’Shaughnessy, author of What Works on Wall Street, found to be the best historical value metric… the price to sales ratio. I’ll discuss how to calculate it, what it tells us, and how you can incorporate the metric in your investing approach. What Is Price To […]

Option Basics – Debit Spreads

Option Basics – Debit Spreads

It’s time for the third installment in our tutorial series on option theory. In the last two installments we we covered option basics and then did our best to give you a head start on how to interpret option greeks. Today we’re going to jump right into debit spreads and explain why they often may be preferable to trading […]

Option Basics – The Greeks

Option Basics – The Greeks

It’s time for the second installment in our option basics tutorial series. Today we are going to cover the option greeks – which is commonly considered a dry topic. Well that was until now –  so grab a short sword and a bottle of body oil because you’re going to need it down in the dusty arena when […]

Option Basics

Option Basics

In the context of reintroducing option related strategies here at Evil Speculator I find it important that we establish a baseline of fundamental option related concepts for everyone. Perhaps you’ve never traded options before or maybe you’re just a bit rusty and could use a refresher. So let’s start with the very basics: WHAT IS AN OPTION […]

Herding Bias

Herding Bias

Something very interesting happened during our trip back to Valencia last Sunday. After checking our luggage and passing through the airport’s security procedures we had a bit of time to spare and decided to grab lunch at a promising looking grill restaurant. As we picked our table my wife noticed a black  Samsonite suitcase that apparently […]

Options Trading Strategies

3 Metal Stocks Flashing Bright “Buy” Signals

3 Metal Stocks Flashing Bright “Buy” Signals

A trio of solid setups await in the metal space After a short holiday break, the inflation trade is back, baby! Indeed, the turn of the year has been oh-so-helpful in reigniting demand for metal stocks across the board. For proof, look no further than the SPDR S&P Metals & Mining ETF (NYSEARCA:XME), which is […]

A Guide To Conservative Income Producing Option Strategies For Dividend Stocks

A Guide To Conservative Income Producing Option Strategies For Dividend Stocks

With interest rates at their lowest point in history, once safe income-producing assets such as 10- and 30-year Treasury bonds have seen their yields plunge to pitiful rates that are just high enough to keep up with inflation. And while high-quality, dividend growth blue chips such as Pfizer (PFE), Coca-Cola (KO), Procter & Gamble (PG), […]

The Best Strategies For Binary Trading

The Best Strategies For Binary Trading

Binary options are a relatively new trading method which became popular after its approval by U.S. Securities and Exchange Commission in 2008. Binary options require users to predict the future price movement of an underlying asset and they can gain up to 80% profit based on the outcome of the trade. Users need to choose […]

3 Safe Trades Leveraging The Market’s Biggest Trends

3 Safe Trades Leveraging The Market’s Biggest Trends

While the market tests new highs, some stocks and ETFs seem destined to fall. These three contrarian plays make great trades right now, and could be some of your most profitable moves for all of 2016. Changes are coming in three major areas of the market, and being on the right side of these trends […]

5 High Probability Options Trades For May

5 High Probability Options Trades For May

When I first started trading, I ignored the Dow Jones Industrial Average and its ETFs (DIA) because – after all – why would I limit myself to the 30 most popular stocks? But now, as an options trader, I find myself almost limited to those stocks that are most liquid. Because of this, I’ve looked […]

3 Strategies For Shorting The Bursting Biotech Bubble

3 Strategies For Shorting The Bursting Biotech Bubble

Follow any of these three easy to understand, step-by-step strategies that detail exactly how any investor can profit from the collapse in biotech.  The biotech sector is a bursting bubble. Unfortunately, making money from a bursting bubble requires investors to go short on a stock. Shorting a stock exposes an investor to a theoretically infinite […]

Options Volatility Watch

3 Proven Options Trades To Profit From Market Volatility

3 Proven Options Trades To Profit From Market Volatility

Make volatility put cash in your brokerage account during 2017 by using these three simplified options trades. With a new President in office this year, investors should expect another bumpy ride for the stock market.  Generally speaking, the arrival of a new calendar year shouldn’t have much of an impact on the performance of the […]

Income Investors Should Learn To Love Volatility

Income Investors Should Learn To Love Volatility

Years from now, we may recall 2016 as the year when political risk became a constant presence hovering over the investment landscape. But fear not: there are ways for investors who rely on fickle global credit markets for income to turn the turbulence to their advantage. Investors have always had to account for some degree […]

A Comprehensive Guide On Making Profitable Investments In Times Of Economic Uncertainty And Increased Volatility

A Comprehensive Guide On Making Profitable Investments In Times Of Economic Uncertainty And Increased Volatility

Introduction There are probably a thousand and one laws on investing (possibly more) with a view to guiding you on how to make profitable investments. Interestingly, the multiplicity of those investment laws could make them confusing. More so, following all of the laws doesn’t guarantee profitable investments. However, the summation of all the laws of […]

Realized Volatility Profiles: Futures

Realized Volatility Profiles: Futures

Today I will introduce an aspect of volatility that you most likely have not seen being addressed anywhere else: realized volatility profiles. First up let’s make sure you all understand what realized volatility (RV) is and how it compares to implied volatility (IV). Simply RV measures the amount and amplitude of price change observed in […]

Big Time VIX Trades Could Mean Volatility Is About To Decrease

Big Time VIX Trades Could Mean Volatility Is About To Decrease

Big Time VIX Trades Could Mean Volatility Is About To Decrease The VIX continues to generate plenty of financial news as it remains elevated above normal levels.  Volatility has started to settle in recent days, but don’t expect a complete capitulation until after the next Fed meeting. As a reminder, the VIX (S&P 500 Volatility […]

Major VIX Action Suggests Volatility Is Going To Decline

Major VIX Action Suggests Volatility Is Going To Decline

Major VIX Action Suggests Volatility Is Going To Decline The VIX has been front and center in the financial news lately with all the volatility that’s hit the market the past couple weeks.  The collapse of the Chinese economy is spooking investors and adding a sizeable level of uncertainty to US financial markets. As a […]

Options Trading

Don’t Fall Prey To Overpriced Options

Don’t Fall Prey To Overpriced Options

I am old enough that I was trading in the markets before decimalization. If an option was trading for a quarter, we called it a “quack.” If it was trading for a sixteenth, we called it a “teeny” or a “stink.” Beware the teeny puts. If you were a market maker on the floor, you […]

3 Trades To Play The Eye Of The Storm In Energy Stocks

3 Trades To Play The Eye Of The Storm In Energy Stocks

Energy stocks are splendid choices for options plays right now Let us praise the markets for creating puts and calls. The three-year period of volatility in oil delivery prices has created all kinds of havoc in the energy sector and in the global economy. The volatility and large moves in oil prices have created a […]

5 “Facts” Smart People Get Wrong About Options

5 “Facts” Smart People Get Wrong About Options

Using options contracts to boost returns and income could be the most powerful investing tool that you’re not using. While trading options for the first time might be intimidating, we’ve broken it down to its core pieces and show that options aren’t as dangerous as you might think. 1) Options Trading is complicated Markets can […]

Buy This Stock At A 10% Discount Or Get Paid Not To

Buy This Stock At A 10% Discount Or Get Paid Not To

Using an easy to understand options strategy, you can purchase this undervalued and attractive stock at a 10% discount to its current price or get paid real cash income not to. Professional money managers use this strategy to build positions in stocks at a discount while also earning a regular income stream. Rates are ridiculously […]

3 Pitfalls Of Options Trading

3 Pitfalls Of Options Trading

Let’s discuss the downsides to options no one ever mentions. The reason no one talks about these pitfalls is that it’s against the system’s best interest. The system wants retail traders churning their accounts at brokerages with tons of options trades. The more trades the better. Brokers earn fat commission fees and their affiliates that […]

The Value Of “Growth Options”

The Value Of “Growth Options”

Financial economists divide the value of a company’s equity into two components: the value of “assets in place” and the value of “growth options.”  Although unfamiliar to many investors, the division is a highly useful tool.  To see why, both components must be defined clearly.  The first component, assets in place, has two parts.  The […]

Covered Call Writing

How To “Write” Covered Calls For Safe 8% Yields

How To “Write” Covered Calls For Safe 8% Yields

Most investors buy stocks and hope they’ll go up in price. They do nothing in the interim to generate cash flow from those stocks while they sit in their portfolio – like writing covered calls. “Write” what? I’ll explain. And I’ll also highlight some popular exchange-traded funds (ETFs) and closed-end funds (CEFs) that will help […]

3 Covered Calls To Cash In On Blue-Chip Stocks

3 Covered Calls To Cash In On Blue-Chip Stocks

Using covered calls to generate income can be a safe way to enhance fixed income Options are still considered rather exotic securities by the average investor, and in some ways, that’s a good thing. They can be exotic and there is a higher degree of risk associated with them, depending on what one’s investment goals […]

3 Covered Calls To Drop A $1,000 In Your Bank Account

3 Covered Calls To Drop A $1,000 In Your Bank Account

These three covered calls will generate a grand over the next month To me, covered calls serve two really solid purposes when it comes to using this strategy in a long-term diversified portfolio, such as the one I’ll be building in my upcoming stock advisory newsletter, The Liberty Portfolio. Covered calls can be used as […]

Double Down On Dividends With These 3 Covered Calls

Double Down On Dividends With These 3 Covered Calls

You can generate income by selling covered calls and collecting a dividend One of the best options strategies, as far as income is concerned, is using covered calls. This strategy involves first buying or already owning a stock in round lots of 100 shares. You then enter into a contract to sell 100-share lots to […]

3 Covered Calls For $1,000 In New Year’s Cash

3 Covered Calls For $1,000 In New Year’s Cash

These 3 covered calls on small-cap stocks will yield fantastic premiums for your post-Christmas bill pile-up Now that we know Donald Trump has won the election, despite all the nonsense over electors not casting their assigned votes, we can get down to business selling covered calls on some unloved financial stocks. These little guys have […]

Covered Call Technical Analysis

Covered Call Technical Analysis

When it comes to covered call trading, technical analysis can be a key factor. The primary risk with covered calls is that your stock will have a sharp move lower, so sticking to stocks in well defined uptrends can help minimize (but not eliminate) that risk. So how is an uptrend defined? An uptrend could be […]