The S&P 500 has already reached levels this year that weren’t reached until December 2004 in the tech stock crash recovery. The volume levels are underwhelming, but on almost every other front the bulls are celebrating. It doesn’t hurt that business continue to report very good numbers. It is hard to get a good doom and gloom mood going with folks like Intel …
If you have general questions about dividends see Top 10 questions about dividends. One strategy for capturing dividends is to buy the stock/ETF and then sell calls against that security as a hedge—a covered call. The value of the short calls moves in the opposite direction of the stock/ETF, providing a hedge. There are three major variables with this strategy: 1. How many days before …
Advantages of ETF index funds over mutual funds index funds: Management fees are usually lower. For example for inflation protected bonds the Schwab mutual fund SWRSX has a .5% expense ratio and the iShares Barclay equivalent TIP has an expense ratio of .2%. Instead of trades executing at the end of the day they can be bought or sold at any time the market is …
Did covered calls on SPY, buying SPY at 119.70, selling to open April 119 Calls at 1.11. Net investment/ breakeven is 118.59. Ended up doing sequential market orders because combo order execution was not working well at Schwab. Has the feel that actual humans are involved in the process–not a good thing with a moving market.
I know that analogies usually confuse more than they help—but that’s not going to stop me from trying… Imagine that you are the season ticket holder of 4 good seats for a major league football team at the beginning of the season. A lot of people think the team is headed for the Superbowl, but you are pessimistic. You’d like to cash in on the …
