Archive for January 2010

Secrets of the Pay Option Arm Mortgage

Option ARM (also called Pick A Payment or Pay Option ARM) loans work by providing the borrower with four payment options each month.
Before we get into the payment options, let’s review some of the important terms and concepts involved with this loan program.
ARM – Adjustable Rate Mortgage. An ARM is a mortgage whose [...]

Covered Calls vs. Dividends – Option Trading For Income Investors

Trading options and investing in dividend stocks are two subjects that aren’t normally linked, but, by using a conservative option trading approach, selling covered calls, you can actually often double and sometimes even triple your yield on dividend paying stocks.
Selling covered calls is sometimes compared to taking out a limited insurance policy on your [...]

Spread Betting Slowly Evolving Towards Mainstream

The advantage of spread betting, as opposed to buying shares, is that it offers one of the simplest ways to bet on markets moving downwards, as they have in recent months. Moreover, bets are free of stamp duty, while any gains are not subject to capital gains tax (CGT).
Most regular readers will be fully aware [...]

What Are Options Contracts?

Options contracts provide you with the right, but not the obligation to buy or sell an asset for a price. Prior to an asset’s maturity date or a pre-determined date you cannot buy or sell the asset.
In general one hundred shares of an underlying stock represents one options contract. Options contracts have two [...]

Option Trading Strategies – a change from buy and hold

A portfolio of stocks and shares is a standard investment strategy that exactly fits the bill in the search for a source of passive income, which is generated from the annual earnings payout from the shares. I am not a professional advisor, so this is just a personal opinion, but I do not think that [...]

Options Trading Lesson: Closing the Time Spread Position

It is important to remember that the time spread will leave you with several potential positions that can be altered by other options or stock in numerous ways.
There are a number of decisions you must make to clarify your understanding and goals. Being open to a number decisions can be a very good thing [...]

Increase Your Wealth With Stock Options Trading

These days making money is not that difficult if people are smart enough to use their minds in the right direction. Now, we do not consider hard working good and always wish to make fast money without much hard work. Due to this reason, a lot of people are now getting into the gamble of [...]

How to Choose a Trading Platform

Choosing a forex trading platform can be very hard if you dont know what to look for.In this article you will learn the most important things that a good forex trading platform should have.Hopefully after reading this article you will have everything you need to choose a good forex broker & platform   So for [...]

Stock Options: Know When To Hold ‘Em

If the stock options you’ve received from your employer are burning a hole in your pocket, it may be time to get a second (or third) opinion before you cash in. Employees often believe they have the inside scoop on when the stock’s market price will top out, and that false sense of confidence can [...]

Risk Free Option Trading – Using Arbitrage

People are always wondering if there is a way that you can invest in the stock market totally risk free. Is there a way that, once you enter your position, there is 100 percent certainty that you will make a profit?
The answer is ‘yes’.
In this article, we will discuss how this strategy works, [...]