Options Strategies

Warren Buffett once described options (and other derivatives) as “weapons of wealth destruction.” That’s because derivatives — investing tools that “derive” their price from the value of the stock or ETF that they’re based on — can carry great risk. More complex derivatives tend to have more risks, and with… Read More

Investors are getting nervous about the events going on in Washington as the government shutdown drags on. While we think that the shutdown is nothing more than “political theater” and should have no long-term effect on stock prices, the U.S. government’s most recent antics have nonetheless introduced an element of… Read More

Delta is one of the options “Greeks,” a group of values that describe the individual risk factors affecting the price of an options contract. Delta measures how much an option’s price should change if the value of the underlying security changes by $1. The values of delta will range from… Read More

As my last days in the military drew near, I was not concerned about money. Unlike some of my... Read More

As my last days in the military drew near, I was not concerned about money. Unlike some of my colleagues, I had a good plan in mind for how to make money as a civilian. I had already been able to... Read More

Income investors usually think of quarterly dividend payments as their primary objective. However, this eliminates many of the best investment options from consideration. Some companies can use the cash for growth and generate far more wealth than they could by paying a small dividend. Warren Buffett does not pay a… Read More

Market crashes are an interesting area to study. Many economists and finance professors devote countless hours trying to discover the precise causes of crashes. In 2008, it was the housing crisis. In 2000, it was Internet stocks. In 1987, it was portfolio insurance. In 1929, it was highly leveraged stock… Read More