Entries by Sensei

Fundamentals

On any given day you can hear analyst talking about FUNDAMENTALS., do you know what they are talking about? The premise of any good company is solid growth of earnings. In addition to margins. Simply put a company that makes a profit. When we look at the S&P we look for companies that sell for […]

Coal For Christmas

The heat wave across this country has been incredible this summer. If you are like me, you have been running your air non-stop. That being the case, the coal fired plants have been burning coal to keep pace with the electric demands. Not to mention the horrible disaster in Japan. As economies grow the need […]

My Broker Won’t Let Me

I’ve had many people ask me if they could trade options in their IRA. The answer is Yes and NO. It depends on your broker. I’ve seen numerous firms prohibit their clients from trading options in their IRA and others allow it. You can’t trade naked calls but covered calls, puts, and straddles are often […]

Take The LEAP

A leap is an option who’s life is at least one year out. In other words more than a year before the options expires. If you like consistent income and creating downside protection, you may appreciate the strategy of selling calls a year out. Here are a few companies that currently offer double digit premiums, […]

Trader Die Horrible Death

Man crushed by expiration. An options position diminished with time, watching your position expire worthless is like watching a train get closer and closer until it runs you over. The key to trading is to have a plan in place before you place any trade. Ask yourself, how much can you afford to lose, place […]

Catch A Cat

The Dow closed above 11400, now the question is, will the rise continue? If so, CAT may be your ticket to a nice return. My research gives CAT a 12 month target price of $140. With this in mind I’m laying out two scenarios. Be the BANK or be the Player. The Bank will buy […]

Insuring profits

If you own stock you have one option to protect your profits, sell your position. If you learn how to use options you can use a PUT instead. Here is how a put works, if you BUY A PUT, you create downside protection, the PUT allows you to sell stock at a pre-determined price regardless […]

The Bank

If you have ever played blackjack, you know you play against the bank. The bank usually wins. You may win on a particular night but overall the odds are in favor of the bank. This is also the case with options. If you want to be the bank you need more capital then being the […]