Tag: covered calls
The Perfect 10% Payout For A Toppy Market
Worried about a pullback? I don’t blame you. But you shouldn’t stash your portfolio in cash when you can bank this 10% dividend and be protect yourself from a drop in the stock market. Rather than buying stocks for their payouts and hoping they don’t crash, you can extract more money from them – and protect your […]
3 Big-Money Option Trades
These 3 options trades are risky, but can offer nice premiums and a hedge Covered calls and naked puts can be very effective tools to both generate income and hedge long positions in any kind of stock. For some expensive stocks, however, they can offer very high premiums if you are willing to take on […]
The Beauty of Covered Calls
My goal and my promise to Peak Income readers is to secure for them a high and stable income stream, no matter their situation: in retirement, close to retirement, or just even thinking about retirement. I want paychecks to hit brokerage accounts every month, with consistency and low risk and without worry. No wonder I’m […]
3 Options Trades That Will Protect You From Harm
Sell calls against a long position and use the money to buy puts I’m not trying to sound the alarm and get everyone rushing for the exits, but according to the Shiller price-to-earnings ratio, the stock market is now the third most expensive it has been in history, behind only the market of 1929 and […]
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 […]
Options Trading Strategies To Avoid For 2016
Options Trading Strategies To Avoid For 2016 Hard to believe but 2016 is right around the corner. While the financial markets don’t really care what calendar year it is, we as investors tend to like to group market conditions by the year. For instance, 2015 will most likely be the year of tepid growth and […]
Options Trading And The New Normal
Options Trading And The New Normal As we approach the end of the year, we can start to piece together what kind of year it’s been for US stocks. There are basically two different stories to tell in 2015. There was the August correction and subsequent rebound. And, there’s been a whole bunch of range-bound […]
Options Trading Is Much Better Than Stock Trading
Options Trading Is Much Better Than Stock Trading This is an options trading site, so of course we spend a lot of time talking about the benefits of options. I regularly point out the virtues of using options instead of stocks. That should come as no surprise to most people who trade options regularly. Yet, […]
A Better Way To Trade Gold And Silver
It’s been a rough year for precious metal investors. Both silver and gold have fallen nearly back to their late 2010 levels. In fact, gold’s down nearly 20% year-to-date. And, silver’s been hit even harder… down over 27% for the year. I’m not going to get into why the metals are selling off. That’s not […]
Do You Repair Or Do You Hedge Your Stock Position?
I’ve recently mentioned 1,310 on the S&P 500 as a level to watch. Now my focus is simply on 1,300 and if it can hold that level. Again today is another gap up day with immediate weakness. Yesterday, the S&P 500 stabilized for a bit in early trading with 1,317 as the trading area. But […]
Where To Hide In This Uncertain Market
What is an investor to do in this wild market? Should you liquidate your portfolio and run the risk of missing an uptrend like last year? Or do you stay in? These are questions that have plagued investors for decades. Last week, I suggested that we needed to buy and stay in defensive stocks. These […]
Don’t Let This Common Options Trading Mistake Trip You Up!
When properly used, the option market can be a sea of valuable information. But it’s easy to misinterpret this activity. I’ve heard some fellow traders compare option trading to a game of chess. This is a great analogy. With so many option strategies, the complexity can get particularly confusing for retail traders. Here’s the problem […]
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