Options as a Strategic Investment » Stock

Trading Stock Options: Basic Option Trading Strategies and How to Use Them to Profit in Any Market [Paperback]

admin — Tue, 22 Jun 2010 16:52:56 +0000

Many traders and investors dismiss stock options as either too complex or too risky. But did you know that options can be easily understood and the risk easily managed? This book will show you the basics of stock options in easy to understand terminology. You will be able to read option quotes with ease, get an option enabled trading account, and trade basic option strategies in no time. In Trading Stock Options, experienced option trader Brian Burns explains the basics of stock options and shows you how to trade the most successful option strategies. As you begin your journey on the option path, you’ll have the luxury of real-life trade examples to show you the way. The diagrams and charts help turn the complex world of options into easy to visualize and simple to understand strategies that even the most novice of traders can utilize. Trading Stock Options will show you how you can use options to: * Get paid to buy and sell your favorite stock * Purchase st (more…)

Trading Stock Options: Basic Option Trading Strategies And How I’ve Used Them To Profit In Any Market [Paperback]

admin — Wed, 16 Jun 2010 18:16:44 +0000

In Trading Stock Options, experienced option trader Brian Burns, explains the basics of stock options and shows you how to trade the most successful option strategies. As you begin your journey on the option path, you’ll have the luxury of real-life trade examples to show you the way. The diagrams and charts help turn the complex world of options into easy to visualize and simple to understand strategies that even the most novice of traders can utilize. Trading Stock Options will show you how you can use options to: * Get paid to buy and sell your favorite stock * Purchase stocks for less than their current price * Buy insurance on stocks in your portfolio * Profit when stocks lose value * Perform short-term trades with less money than trading the stock From the Introduction “Through my experiences with option trading, I have tried almost every strategy I could find. In this book, I will be discussing the strategies that I use the most and feel are the bes (more…)

Options Besides Stocks For Investing

admin — Sun, 27 Dec 2009 11:34:14 +0000

The idea is as simple as it can get-acquire a land property and resell it for a profit. Investing in lands or real estate can be rewarding in many ways. With enough money at hand, one can simply put up a two-bedroom apartment and have it leased. The rent is a regular income already. The land itself can be leased to interested parties, without additional pay out for construction.
Lands are considered assets, and as such, they appreciate in value as time passes. Especially when the real state is a prime property or located in a commercial area, financial institutions usually take them as collaterals in exchange for loans as much as 80 percent of the property value. The investor, then, can leverage on the loan through other investments, and earn by the time of maturity.
Compared to stocks or bonds, real property is more stable in terms of pricing, since it is less liquid. It may prove disadvantageous to some investors, but for those who prefer a more long-term return on investment, they will do well to consider buy-and-sell of lands, with or without fixtures. The flipside is that this kind of investment requires a sum of money.
Insurance Policies
There are life insurance policies that offer dividends, as annual premiums are paid over a stretch of ten to fifteen years. The return is not only with the interests earned, but also with the insurance coverage. It can be risky, because mismanagement can happen to some insurance companies. It is best to entrust investment with those who have proven track records, and whose portfolios are also diversified.
Lend to Others
Government corporations and other businesses sometimes sell bonds to the buying market in order to raise funds for expansion or infrastructure on a large-scale. To invest in bonds is simply to lend one’s money to others at an expected interest on returns, at a certain maturity date. The usual schedule of maturity for bonds is semi-annual. Prospective investor must be careful of bonds being sold at interest rates higher than what the government offers. The returns on investment may also fall short of the inflation rates, as bond prices usually decline when there is an increase in interest.
The Piggy Bank
Yes, it pays to save up. This is the earliest form of investment, but also one that takes so much discipline and diligence on the part of the investor, who is usually a middle-income employee. It should be wise to have a specific intention for it, and not just for the sake of stashing money, so that there is a clear objective on how much money should be put aside. Some people are saving up for emergency situations, but most if not all do so for retirement. The investment is secure and easily accessible since it is liquid. The return, however, is minimal; banks usually provide, at most, only a five-percent annual interest rate. But savings done on a long haul can reap benefits for the investor. That is, with enough patience and self-control. It may not be a good investment strategy for impulsive buyers.

What is Capital Growth Investment Strategy?

admin — Sat, 28 Nov 2009 11:31:30 +0000

Capital growth investment strategy is a widely accepted and followed portfolio management strategy. As the name suggest, the strategy aims at capital growth, maximizing portfolio value, over time. Before we start, here is the danger signal – capital growth strategy is a high risk investment strategy which requires great investment discipline and money management. A portfolio which follows capital growth strategy is mainly comprises of equities. Often more than 60 to 70 percent capital is invested in stocks, preferably growth stocks. Remaining portfolio can be constituted of low profit low risk investments such as fixed income securities, money market funds, cash, and/or precious metals like gold to limit overall portfolio risk. The exact portfolio capital allocation depends on many things like individual profit goals, risk tolerance, risk capital involved, portfolio size and investing experience. Many times one can see capital growth portfolios which allocate more than 90 percent capital to equities. Capital growth investors often prefer small and mid cap stocks over large cap stocks, because these show greater growth and are expected to offer increased return over time. Diversification of portfolio is important in capital growth strategy and is achieved by investing in different products like stocks, options, futures, ETFs, funds, bonds, etc. Portfolios which allocate most (all) of the capital to equities achieve diversification by investing in different industry stocks, different markets, using derivatives to hedge risks, and by investing in both high growth high risk stocks and low profit low risk stocks.Capital growth investment strategy is a long-term strategy, which may or may not require periodical reassessments and rearrangements of portfolio allocations. Investable stocks are found using various growth investing tools and strategies. Active portfolio management is recommended for experience investors, to replace low performing investments with high performing ones. But remember, active management often requires greater costs. The advantages of capital growth investment strategy involve faster increase in asset value and better chance of profit than most other investment strategies. The disadvantages include higher risk, unpredictable returns and high volatile portfolio. With capital growth strategy, market entry and exit timings are very important; and there are too many market, risk and economical factors to be considered. The silver lining is ‘irrespective of frequent ups and downs, the equity market shows almost steady growth in long-term; which is higher than most other financial markets’.