This is a continuation of an earlier post found here. A common misperception is that most options expire worthless. This is not true due to people not exercising their options, but because some puts expire out-of-the-money and if a put is in-the-money, the calls at that same strike are out-of-the-money. In addition, many traders will close their…
Month: September 2007
How Put Selling Works, Part 1
I had a good exchange with a reader in the comments of a post from the end of July. He asked a good question that made me realize that a lot more people are probably wondering the same thing. In essence, he asked how does selling puts work. Since selling options, mainly selling puts, is the foundation…
Barron’s 400 – Stock Picks
This week’s Barron’s offered insight on how they find a lot of their stock picks. You don’t have to be a subscriber to see the contents of the page which I recommend you visit. Just because a stock is listed here doesn’t guarantee it’ll go up, but at least they’ve done a lot of the…
QQQQ Chart Analysis
A reader asked me to chart the PowerShares QQQ Trust (QQQQ) this week instead of the Dow like I usually do. I haven’t charted it in a while, even just to glance at and since I’ve been reading so much recently about the tech stocks being a safer haven I figured it was a good idea. Mixing up the…
Month End Summary – August 2007
In a strange way I liked August’s price action. We got the correction we’ve been overdue for and got a good bit of panic to enter the market. I took the opportunity to reload on some positions and plan to make another strong run for a couple of months. There’s enough fear in the market…