Tag: option premium

Using Cash-Secured Puts: The AT&T Example

| October 12, 2018 | 1 Comment
Using Cash-Secured Puts: The AT&T Example

Investors that have the goal of generating income from their portfolio generally have two methods at their disposal to do so. They can simply increase the size of their portfolio and thereby boost the number of dollars that are produced by the portfolio’s average yield.  But “have more money” is rarely an option. Alternatively, investors […]

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Futures Trading: Will VIX Term Structure Remain Calm?

| September 12, 2018 | 0 Comments
Futures Trading: Will VIX Term Structure Remain Calm?

Despite increasing drag of trade tariffs and swirling cross-currents of currency valuations curtailing global growth causing overseas markets in bear territory, the U.S. stock market keeps powering higher. And judging from the Volatility Index, or VIX traders expect the calm to continue even as we head into the notoriously turbulent month of October. The term […]

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VIX Options And Taxes

VIX Options And Taxes

Like many investors, the nine year bull market has left my fund with a large amount of unrealized capital gains.  With prices now very rich, at least in my view, I feel the risk/return trade-off is much less favorable then when those investment were made.  I fear there is a reasonable probability of a large […]

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Intrinsic Value, Option Premium

| April 2, 2012 | 0 Comments
Intrinsic Value, Option Premium

Option Premium can be best described as the cost of an option.  To many, understanding options premium can be intimidating.  While it may seem like there are many variables that go into premium calculation, the reality is there are two parts that make up the value.  Moreover, there are three distinct variables affecting the value of […]

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