Discover The Truth About Out Of The Money Covered Call Option Writing!

By Marc Abrams

Many websites and e-books on investment training strategies promise you incredible things. Writing Covered call options on stock is one of the most popular trading strategies taught today. These websites promise that you can earn up to 10% monthly returns using that very strategy. Sound good? Read on.

I will be the first to admit that selling out-of-the-money covered calls can bring lucrative monthly returns under the right circumstances. This strategy has been successfully used by me. However, this strategy is not without its disadvantages. The public has not been properly educated by the website and e-book marketers. They market this strategy as conservative with little risk. They leave you holding the bag when it all goes wrong.

When the stock market is rising in value selling out of the money covered calls works well. Additionally, when the stock market is neutral (not going up or down by any meaningful amount), this strategy also works well. Please tell me when the last time was that the stock market remained neutral for any length of time?

We are currently in the midst of an extremely volatile market. The Dow frequently moves as much as 200 points either way in a single day. Hardly a profitable market for an out-of-the-money covered call writer. Your profits will start to evaporate once the stock you are holding starts to decline. I can assure you that profits can evaporate very quickly. I have seen the value of a stock drop from $10 to $1 over night! There is never enough premium on an option sale to cover that kind of decline.

The key to out-of-the-money covered call writing is to select stocks that will get called. Many so called experts do not want the stock to get called. They want you to keep the stock so you can sell a covered call option on it the next month. This strategy is flawed. You need to select stocks that are trending up in value, hence, a rising market. Those stocks will make you the most money. If the stock gets called, I know I ended up making my maximum anticipated return.

What happens if the stock goes way up in value? The stock simply gets called away if it rises up past the strike price and stays there through expiration. Isn't that what you wanted in the first place? Because you did not participate in those gains you may feel like you left money on the table. If you feel that way just buy the stock outright and don't sell covered call options on it. Why not just let the stock get called away, take your profit and move on? Then look for stocks to buy and sell calls on for the next month.

Remember, you can create an excellent source of income selling out of the money covered calls in a rising stock market. However, the stock market we find ourselves in today is less than ideal for this strategy. There are other strategies, however, that offer significant protection in a declining or volatile stock market. - 23159

About the Author:

Marc Abrams Is A Certified Public Accountant With Over 15 Years of Financial And Investing Experience. Visit Marc's Website at http://www.rebuildingmyfuture.com To Learn More About Writing Covered Calls In Today's Stock Market

It Takes Time To Learn The Stock Market

By Sharon Demeter

Anyone who is new to stock investing might feel intimidated when they go online to try to figure it out. The market has done so poorly that many people are disgusted with it and dont want to risk any more money. Yet others who might never have gotten interested in the stock market want to take a look at it because it is so low. These people might be thinking that now might be a good time to get on board and start buying some stock at these depressed levels.

Anyone who is hoping to learn the market for the first time need not feel like it is too intimidating. If you want to learn how to buy stocks, it is easy to open an account online and you can do it all without even speaking to a real person. With Internet trading, there is never any reason to feel embarrassed by any of the market jargon either. You can learn at your own pace and find all the answers to your questions online.

Opening a stock account online is not much different than opening up any other type of account online. You will need to get a user name and password, and then enter your name, address, and social security number. The social security number is required because law requires that your transactions be sent to the IRS. After you send in your money, you eill be able to start buying stock with the click of your mouse.

If you want to learn about buying stocks before you try the real thing, one of the best ways is to join a fantasy online stock trading game. There are several of these games online where you can trade stocks that you buy with virtual fake money. These games will teach you how to buy and sell stocks and how to manage a portfolio. Nothing is ever like the real thing but this is a great way to learn about stocks and how to research them. These games are free unless you want some of the upgrades that you have to pay for.

Beginner investors need to know that they can indeed lose money in stocks. This is one of the things that makes it scary to buy your first stock. Once your money is in play, it is real and the stock you buy can go down. Nevertheless, the stock market has been a historically good place to invest and beginners should remember that. - 23159

About the Author:

Are you interested in learning about buying stocks for beginners? Please visit my site Stock Market For Dummies.

Here are Penny Stock Tips You Can Use To Make Money

By Grant Dougan

Penny stocks are business share offerings made to the public by companies that are too tiny or new to have a listing with the major share exchanges. These offer high growth possibilities, and your initial purchase can be quite small, but you stand the risk of the business becoming bankrupt and you losing your investment. People are drawn to these kinds of shares due to the case that despite the risks you can see sizeable returns.

Obviously, when you're attempting to pick out a penny share to put money in in you are going to want to know some details about the organization. Just like purchasing other stocks, you are going to need to know the type of business they are operating and what business plans they have in the future.

It is unusual that the businesses that issue these types of shares have complex organizations - usually they are simple to understand and research. There's a lot of of these kinds of stocks that are companies that deal with with resources - their value will appreciate and depreciate depending on the price of the commodity.

Penny stocks are believed to be a high risk purchase, according to the SEC. Regrettably there's always the risk that the business won't make it even with adequate research.

Keep in mind that the reporting regulations for penny stocks aren't always as tight as stocks on bigger exchanges. One of the sorts of penny stocks is known as a "pink sheet" and has virtually no regulation when it comes to their reporting and accounting standards.

As you can imagine, due to this lack of regulation, this sort of stock is very vulnerable to manipulation and even used for fraud. A well known common schemes is called referred to as a "pump and dump" - people manipulating the price of stocks to increase and then get rid of all of their stocks immediately and leave other investors with big losses.

Don't let the above scare you off these sorts of shares! Penny stocks always have risks but also hold a sizeable potential for a large gain. There are lots of real, legitimate small organizations, and they have to get going somewhere. Tons of organizations that are classified as penny shares are headed to be a success in the future. Anyone who can spot out a valuable penny stock will get a large reward.

Remember that finding the right penny share will make you a sizeable payout.. Even if you were to lose on most of your penny share selections, the one winner will be such a great profit that you'll not remember about the ones that didn't work. - 23159

About the Author:

Use these penny stock tips and you will find yourself making great cash trading penny stocks. Click Here to learn about a penny stock trading system that has been generating huge profits for the past four years!

How To Find Buyers For REO Properties

By Jerome Pennix

The procedure is a tedious one after a home is foreclosed by the bank. The mortgage companies take weeks if not months after foreclosure to get their paperwork done, do evictions and minor repairs and make the assignments to the real estate brokers who they have hired to sell their properties. But the time of clean up and eviction is not a concern for the savvy investor, it is an opportunity to get buyers so that these houses sell almost immediately as you get them under contract.

REOGoldMiner.com is the premier site to find and valuate these REO properties. In order to change these deals into profits, we suggest an investor start the steps of rounding up buyers as soon as the property is under contract. Videos, photos and massive email lists are several ways to bring your potential buyers.

Whenever you advertise your deals use photos or better yet video. Ill get to more video in a moment. This seems to get the buyer serious before they come to the property. Even for buyers of a 100K property, they like to see pictures and it helps the buyer make an emotional connection. Investors and the individual buyer now search the internet to find properties that they can get excited about buying. It is very important to give them enough information to make a decision.

Another effective tool REOGoldMiner.com recommends videoing the property. Taking video has expanded on the process for buyers when they are searching the internet. If you can show the buyer the home in detail by exposing the floor plan that photos can not, then the buyer can make a more qualified opinion on what they need to look for when they visit the home to make the decision process of a yes or no quicker. Video on the internet is the newest, latest and greatest process of advertising your properties for sale.

Finally, collecting a list of potential buyers is also another must in the world of REO houses. Creating the action before the house sits on the market for an extended amount of time is powerful for the REO investor. If you consider about 10 years ago in real estate, buyers came to real estate brokers to see what they had listed. Many buyers still do the same thing even though they have access to the web and the inventory. But, if you have a list already collected of potential buyers it will help your house sell much quicker. - 23159

About the Author:

REOGoldMiner.com not only offers the ability to find the REO deals but we also offer a community of investors that our members can also advertise their deals to. REOGoldMiner.com finds you the REO deals and even gives you an avenue to find buyers right through our site. Helping you get your deals sold as quickly as possible.

A Brief Forex Trading Education

By Alexi Turov

Many Forex traders have become very wealthy working in this lucrative market. They haven't done this overnight though. They first had to have extensive Forex Trading Education. But once they went through a Forex Trading Course they were well on their way to making millions.

A lot of traders have replaced their day jobs with trading on the Forex market,some of them becoming rather wealthy seemingly overnight.Though they didn't achieve this without going through some proper Forex Trading Education.

While Forex trading is a very attractive option it is not without risks.There are people who have suffered extreme financial loss. This is mostly due to a lack of proper Forex Trading Education.

In order to equip yourself with the knowledge and skills needed to maximum your success on the forex market, you should look into taking a forex trading course. Getting a forex trading education can prove invaluable as you navigate thru this volatile market.

Forex Trading Courses provide you with a great deal of knowledge,such as learning when to buy and sell, how to chart market movements and spot a trend. As well as the basics of how to use the various trading platforms available and the terminologies widely used throughout the Forex market.

You have several options when it comes to choosing a Forex Trading Course. A basic crash course if you are just wanting some major points on how to get started. There are several internet options if you want to go more in depth but still need some flexibility. And if you have the time to devote to it and want a very in depth lesson, there are even live classroom courses taught by real professors.

Here are some of the basics you should look for in a Forex trading course in order to get the sufficient knowledge about Forex trading:

*Types of orders

*Margins

*Leveraging

If you are planning on becoming a Forex trader keep all this in mind when looking for a Forex Trading Course. Acquiring the right knowledge and skills is essential in being successful when trading in the Forex market. - 23159

About the Author:

Alexi Turov, a financial advisor and forex trader for over a decade, has provided some insightful hints about Forex Trading Education. Alexi has shared some hints to finding a insightful Forex Trading Course as well as the benefits it provides.