Recently I opened a covered call position in DMD using a total return approach, which means that I am expecting and want the stock being called away. I used a low priced stock, since that would provide a higher return than higher priced stock when using small account (or small amount of money available). I Continue reading →
Making 45% Annually Trading Options Against Dividend Growth Stocks
Futures point to selloff tomorrow
The market finished up today, however, as of this writing the U.S. futures point to heavy selling tomorrow morning. S&P 500 is down -23.90 / 1.66%, Nasdaq -40.00 / 1.49% and Dow -211.00 / 1.50%. So be ready for bumpy ride tomorrow. Another investment I am closely watching is Gold GLD. Today we experienced another Continue reading →
How I am preparing myself for a potential price drop
We are still facing problems with “fiscall cliff” and nervous investors dumping their dividend paying stocks. The selling isn’t overly dramatic. Yet. But it can all come. Since the presidential election, dividend paying stocks dropped in value. Even REITs and MLPs which are not affected by a potential tax hike were driven down by panicking Continue reading →
Market sell off, are you scared?
I am freaking out! It is not a pleasure watching my holdings evaporating and showing a loss. It is also difficult to hold and sit tight. It is even harder investing more money into falling stocks. Some people say “do not try catching the falling knife…” others say it is a great opportunity to buy Continue reading →
Lending Club Performance
Recently I posted my Lending Club performance, showing my return rate chart from the beginning of investing, my account value growth and my interest paid. You can see it here. I also was claiming in several of my older posts that I was able to avoid default notes or even late notes due to my Continue reading →
Diversification is often a hedge for ignorance
Investors are often advised to diversify their stock portfolios to minimize risk. But IBD research shows that it’s actually less risky and more rewarding to own just several carefully chosen stocks. “The best results are achieved through concentration, by putting your eggs in a few baskets that you know well and watching them very carefully,” Continue reading →
Is McDonald’s (MCD) a buy?
I believe McDonald’s is a buy at this price. The fast food chain was beaten down by slowdown pressure in fast food industry although this giant is able to survive even in tough economic times. I remember I was once reading in 2008 an article how fast food chains were prospering due to cheaper price Continue reading →
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