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The Downside of a Covered Call
I recently wrote a post about the benefits of using a covered call, but there is also a downside to using covered calls. While a covered call provides some protection to a long stock position, and serves to smooth price swings, it is far from a hedge for the long position. It should by no […]
Continue reading5 Benefits of a Covered Call
Purchasing stock to hold for the long term can be harrowing. In October the market swooned, only to recover all it’s losses. The drop could have easily taken an investor out of a position. Using a covered call, with the five benefits we discuss here, could keep an investor in a position that would otherwise […]
Continue readingThe Difference Between Stock Warrants and Stock Options is Significant
There are significant and very important differences between stock warrants and stock options. Definitions of stock warrants you can find online provide a basic description of stock warrants. But, not knowing the differences between a warrant and option can severely impact a warrant trader or investor (and by that I mean not knowing what you […]
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