Stock Options Investing Newsletter Sample 1
Here is an example of some of the content
Each weekly issue of the stock Options Investing Newsletter is filled with actionable ideas that include dividend capturing, managing retirement investment risk, and short term option plays. This includes about 1/3 of a typical newsletter. This is also one of our first.
Are Puts Good Insurance Policies?
Generally speaking, I do not consider puts broad market hedging vehicles as part of a long-term investment strategy. Of course, there's a time and a place, but you're attempting to time the market if you look to buy a ( SPY) put at a "top" or simply hold them waiting for downside. Unless you're managing millions upon millions of dollars, that, in my opinion, is not a sound use of puts.
Over the next several newsletters, I will illustrate several ways I think investors should utilize puts. As with most of the things we discuss, the methods I introduce might not jibe with your personal situation. Again, one size does not fit all. In this issue, we start with the most basic application of puts. To play a decrease in the price of a stock.
Note: When we refer to options in any of our newsletters or updates, we speak of American-style options (We do not discuss European-style options, which play by different rules, thus are priced differently). Note: Starting this week, the right sidebar includes updates for subscribers as well a
"Shorting" Stocks Via Puts
That said, you need to have ways to profit from downside, be it in the broad market or in
Over the months, we will add ideas to that section...... subscribe and read the rest
Hedging And Diversifying
At that point, I would buy the ETF and write slightly OTM calls.... subscribe and read the rest
Robert Weinstein's Weekly Dividend Capture Ideas
- Must be able to sell a call option in either the front or first back month that is in-the-money.
Call sold must have enough premium that we do not mind getting exercisedearly (which happens often and can be a good thing if we have executed thetrade correctly)
It is importantto sell the call option hedge at or near the asking price for at least the minimum amount over intrinsic value. I do not want to try putting on the hedge unless the sale of the option (hedge) will provide at least the full $0.34 over intrinsic value. If my shares get called away the day before they trade ex-dividend as a result of the option buyer wanting the dividend I will make about $0.34 Not all that great, but not bad for about a week of owning the stock. The most I can make is $0.47 if I hold the covered call through option expiration day and the stock gets called away.
Copyright 2012.Rocco Pendola/Robert Weinstein