What does the Sharpe ratio mean? The Sharpe ratio is one of those really useful metrics to assess either individual investments or a portfolio. Here is a definition. The Sharpe ratio is a measure of the risk-adjusted return of an… Continue Reading
What is the Black Scholes pricing model for? This is a very simple question that deserves a simple answer. The Black Scholes pricing model is an equation that expresses the price of a European call or put option in terms… Continue Reading
Have you been wondering what to invest small amount of money in? Disclaimer: None of this article or anything on this website should be taken as investment advice, whether good or bad. Please check with your financial advisor before making any… Continue Reading
Have you been looking for the best bank CD ladder? Or maybe you have heard about CDs or Certificates of Deposit and laddering but you’re not sure exactly what it is. What is a CD ladder? CD laddering means that… Continue Reading
What is the best way to start investing for beginners? If you are asking yourself this question the chances are that you are expecting to be told where to put your money. We’ll get to that, but you need to… Continue Reading
What’s the easiest way to invest in real estate? That is a simple enough question. I’m sure this won’t come as a surprise because there are in fact some fairly difficult ways to invest in real estate. To illustrate the… Continue Reading
Is it safe to invest in stocks? I hope so. I’ve got a ton of money invested in stocks so it better be safe. If you consult books on investing in the stock market, most will tell you that the… Continue Reading
Who really controls the stock market? This is a popular question and one that has inspired many conspiracy theories. There are variations on the obvious answer to this, each with some grain of something. But first, let’s just answer the… Continue Reading
What is negative divergence in the MACD? Negative divergence in the MACD is when the price of a stock or ETF is making higher highs but the MACD is making lower highs. It is a bearish indicator in a price… Continue Reading
When you start trading or investing with stock options, very quickly you will find that understanding the implications of the stock option’s delta is key. Delta is key to getting the leverage, risk-reward, and protection in the underlying stock or… Continue Reading
What is the stock replacement strategy? The stock replacement strategy involves taking long positions in deep-in-the-money call options in stock that you would otherwise own. It works best with stocks that you want to hold for the intermediate to long-term,… Continue Reading
This article, bear put spreads explained, does just that. We’ll take a look at some examples of bear put spreads, understand how they work, the risks and rewards, and under what kinds of circumstances they work the best. A bear… Continue Reading
In this article we look at some bull call spread examples as a way to understand how the bull call spread works and what are the best circumstances for using them. This article explains some basic concepts of how to… Continue Reading
Understanding implied volatility of options is something all options investors and traders will need. Volatility is an important measure for options traders because it is the volatility that gives opportunities for profit. When you are looking to open an options position,… Continue Reading
In an earlier article, we looked at selling covered call options. In this article, we will be looking at how to sell naked calls. Selling naked call options means selling someone else, a buyer the right to buy from you… Continue Reading