Video Tutorials

Naked Puts

Suppose you researched a company yesterday and decided that the stock would be a bargain at $50 per share. But when you look it up it’s selling at $52 per share, which you don’t think is a good bargain. You could tell your broker to put in a buy order, good until cancel, so if the stock goes down to $50 you’ll buy it...

Covered Calls

Tutorials - Video Tutorials

Suppose you own 1000 shares of stocks and it’s trading at $52 a share. And you think that’s what its worth but it isn’t paying much of a dividend. You plan to hold it till it reaches $55 per share, whenever that is. But why wait when you can sell a $55 call and take a premium at say 1500 or so...