Enterprise Value/EBITDA

Posted on: April 6th, 2017

Investors use this ratio to determine whether a company is undervalued or overvalued. A low ratio indicates that a company might be undervalued, and a high ratio indicates that the company might be overvalued.  Enterprise Value, or EV for short, is a measure of a company’s total value, often used as a more comprehensive alternative to market […]

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Selling Options Using Implied Volatility vs Historical Volatility

Posted on: March 28th, 2017

When it comes to option prices, one of the factors that determine the cost of the premium is the current level of volatility.  Implied Volatility is the expectation of future volatility and Historical Volatility is a measure of actual recent volatility.  Many investors purchase put options as insurance for their positions.  And like any insurance, […]

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Gap Downs and News Events Create Opportunities

Posted on: March 21st, 2017

Another great way to find potential investment ideas are to look for gap downs and news events.  A gap down is when a stock opens up significantly lower based on news that occurred after the market closed the business day before OR before the market opens back up.  Here is a recent example of a […]

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MasterCard or Visa, one way to choose

Posted on: March 14th, 2017

Introduction I use an investing strategy called Dividend Growth Investing. In actuality, DGI is a set of strategies that all center on investing in portfolio of companies to produce a growing stream of payments. The ultimate goal is that at some point the dividends will provide an income whose purchasing power is not diminished by […]

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Rolling Out our Losers into Winners

Posted on: March 7th, 2017

Let’s face it.  Sometimes we are wrong.  Even when it comes to selling options, where we can make money if the market moves in 3 different directions (but not too much in one direction) at times the market WILL move too much in that one direction.  So, how do we deal with a losing trade?  […]

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What to do in an Overvalued Market

Posted on: February 28th, 2017

I have had a lot of people ask me they can’t seem to find any opportunities. They want to know if they are looking in the right place, are their calculations correct, what is it that they are missing in their research that isn’t giving them any opportunities? The only cheap stuff they are finding […]

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Stock Repair Strategy

Posted on: February 21st, 2017

This is a cool idea that helps you recover your principal on a stock that just didn’t go your way. This strategy helps you get back to break even and is intended for an investor who doesn’t want to put any more capital into a losing position. Continuing with the Options strategies, this strategy uses […]

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Buy Write Combo

Posted on: February 7th, 2017

Selling puts is one of my favorite strategies. Selling a put is an options trading strategy, where you as the seller of the option are obligating yourself to buy a specific company at a specific price any time between now and a future expiration date that you pick. For that obligation, you are getting paid […]

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An Intro to Selling Puts

Posted on: January 31st, 2017

Selling puts is one of my favorite strategies. Selling a put is an options trading strategy, where you as the seller of the option are obligating yourself to buy a specific company at a specific price any time between now and a future expiration date that you pick. For that obligation, you are getting paid […]

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An Introduction to Selling Covered Calls

Posted on: January 24th, 2017

Selling covered calls is a great way to generate income on stocks that you already own. Its also a great way to lower the cost basis on those stocks. Selling a call options means that you as the seller of the option, are obligated to sell the underlying stock at a specific price of your […]

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