Options Trading

Options Trading

Options trading can be intimidating from the onset. Investors who purchase an options contract are not buying an equity or stock. Options trading can be speculative, but for a more savvy investor, it is a method to minimize losses and extend gains. What is an option in the first place? An option is a contract[…]

Call Options Trading

Options Trading: Call Options

Options trading allows an investor to take part in an equity investment that trades at a significantly higher share price than the premium of the underlying stock. For example, Alphabet, Inc. is trading at $697.46 per share as of June 22, 2016. To purchase a round lot of 100 shares, an investor would need to[…]

Tax Free Municipal Bonds

Tax-Exempt Municipal Bond

Municipal bonds (munis) are issued by municipalities, states, counties, cities, and other government agencies. These debt obligations are used for funding day-to-day operations and large public projects such as highway repair/retrofitting, construction of public buildings, and facilities that offer services to residents, like sewage and waste management. Investors do not pay federal taxes on the[…]

Dogs of the Dow

The Dogs of the Dow is an investment strategy devised by Michael O’Higgins in 2000, when he published Beating the Dow. The strategy has been both praised and criticized for its effectiveness to beat the market. The general idea behind the strategy is to invest in high-yield dividend stocks that have little risk. Mr. O’Higgins[…]

Growth Stock

Growth Stock

A growth stock is a stock that is increasing in value as opposed to providing a steady stream of income in the form of a dividend. Growth stocks tend to have a lower price-to-earnings ratio (P/E) and earnings per share (EPS); in some cases the P/E and EPS can be negative. This makes sense given[…]