Tag Archive | "ABC"

Protecting Your Portfolio With Covered Calls

Thursday, November 25, 2010

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I last discussed protecting your stock portfolio with married puts, and now we’ll explore protection via covered calls. Covered calls are when you sell a call option against a stock you own. This defensive move is not as secure as a married put, but instead of paying for the put — you make money on […]

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What Is Shortselling — And Is It Evil?

Monday, May 31, 2010

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What Is Shortselling — And Is It Evil?

The media, along with politicians, love to lambaste shortsellers and claim that they are the culprits behind stock market declines. When you sell short a stock you are betting that it will go down. Logistically, you “borrow” shares of the stock with a future promise to return them, and then you sell those shares on […]

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