The actual design of a hedging strategy boils down to a simple, three-step process: Identify Suitable Securities A good hedge often uses the cheapest possible security that offers the protection needed. For example, in the retail situation above, using put options on the retail ETF may be cheaper than purchasing a full short position, while offering the same benefits as … [Read more...]
Earn Monthly Income with Covered Calls
How to Earn Monthly Income with Covered Calls Monthly income can be earned by selling call options against stock that you currently own in your brokerage account. This income can be used to supplement any earned income or can be used for additional investments. identify a stock of which you already own at least 100 shares. Ideally, you would own at least 500 shares since the … [Read more...]
What Is Common Stock Financing?
Common stock financing represents the sale of ownership stakes within a corporation in exchange for cash or capital considerations. Investors and management must become familiar with the role of the corporation and the basic means with which to finance the business in order to appreciate shareholder rights and privileges. Common stock equity financing does carry distinct risks … [Read more...]