Investing with Options – The Covered Call

Gen Y Finance Guy Options 23 Comments

Over the years I have taught many friends and co-workers about stocks and options. This was actually one of many impetuses for me to start this blog. Too many people are fooled into believing that options are too risky and complicated. This just isn’t the case and I want to help take your investing to the next level. If you truly want to be a self-directed investor, you need to understand how to use options in your portfolio. Even the great Warren Buffet uses options in his investing activities and that’s from a guy that likes to keep things simple. I am going to show you how investing with options can be very simple. In February I laid out rule number …

Buy Into Weakness – Investment Rule #1

Gen Y Finance Guy Financial Markets, Investing, New Rules, Options, Words To Live By 24 Comments

Over the course of the coming weeks and months I will be laying out the investment rules that I live and die by. These are rules that I have developed over the last ten years as both a retail and professional investor and trader: Rule # 1: Buy into weakness. Rule #2: Sell into strength. Rule #3: Reduce cost basis. Rule #4: Keep investments small. Rule #5: Keep 80% of total invested capital in ETF’s and up to 20% in individual names. Rule #6: Choose duration over direction. Rule #7: Manage your winners. Rule #8: Manage risk at order entry. Rule #9: Increase your # of occurrences. Rule #10: Make investments with a probability of profit > than 50%. (Note: …