Monday, February 19th, 2018

How Should Retirees Trade Options

As investors enter retirement they typically adjust their portfolio to limit risk and guarantee a steady income stream with bonds and dividend stocks. Is there a place for options trading for the investor who is now retired? If so how should retirees trade options? There are two ways that retirees may [...]

How Badly Will the Market Correct?

The over-bought US stock market is due for a correction. How likely is that and how badly will the market correct? Kiplinger in their article about how to survive a 10% correction notes that since 1932 the market has experienced a 10% to 20% correction on the average every two years. The [...]

When Earnings Fall Stock Prices Are Next

The best argument for why the stock market rally continues in the face of overpriced stocks is that earnings have been strong. But when the market is leveraged to the hilt and earnings disappoint what happens? The fact is that when earnings fall stock prices are next. Reuters writes that stocks [...]

Should You Buy Calls or Puts on Gun Maker Stocks?

After the worst mass shooting in American history last night in Las Vegas the shares of gun maker and ammunition makers went up. Should you buy calls or puts on gun maker stocks today? CNN Money writes that gun maker stocks are up.
Shares of Sturm Ruger (RGR) were up 4%, while American [...]

Is It Time to Get Out of the Stock Market?

We read in the news that Warren Buffett is having trouble picking stocks that fit his investing strategy and is holding on to nearly $100 billion in cash. If the most famous investor in the world is having trouble picking stocks how can you be successful? The so-called Oracle of Omaha admits [...]

Get Ready for the Stock Market Downdraft and Buy Puts

What goes up generally comes back down and that probably applies to the current stock market. There may not be a market crash but a correction certainly would make sense considering the high values in tech stocks especially. CNBC writes that a severe downdraft will hit stocks. If that is the [...]

Who Loses if Large Banks Are Broken Up?

Will “too big to fail” banks become “too big to survive”? On the campaign trail Donald Trump talked about breaking up the big Wall Street banks. Now President Trump has brought up the same subject. The New York Times wonders if Trump will do a number on the big banks.
For a [...]

How Do Massive Trade Deficits Hurt You?

The president of China is going to meet with the president of the United State in a couple of days. Front and center on their agenda will be trade closely followed by North Korea’s nuclear arsenal and missiles. Trump got elected on promises to roll back trade deficits and bring jobs back [...]

Can You Make Money on Insurance for Everybody?

It is OK if you are confused about who is suggesting insurance for everybody. It is not the Socialist Bernie Sanders but billionaire capitalist turned President Donald Trump who is talking about replacing Obamacare, insuring everyone and beating big pharmaceutical companies into submission to lower the costs of drugs.
President-elect Donald [...]

Is It Time to Buy Puts on Big Bank Stocks?

Investors buy and sell stocks. Options traders buy and sell calls and puts. CNN Money asks if it is time to dump Wells Fargo and other big bank stocks. For options traders it might be a matter of buying puts.
Wells Fargo (CBEAX) stock has fallen more than 15% this year. Wells [...]

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