Covered Call Strategies
Some investors will run this strategy after they’ve already seen nice gains on the stock. Often, they will sell out-of-the-money calls, so if the stock price goes up, they’re willing to part with the stock and take the profit. Covered calls can also be used to achieve income on the stock above and beyond any […]
Collar Strategies
You can think of a collar as simultaneously running a protective put and a covered call. Some investors think this is a sexy trade because the covered call helps to pay for the protective put. So you've limited the downside on the stock for less than it would cost to buy a put alone, but […]
Buying Puts vs. Short-Selling
If you're bearish on a stock, you can try to capitalize on this view in a few ways: Sell the stock, if you own it. Sell the stock, even if you don't own it, by borrowing shares via your brokerage firm. Then, at a later date, buy the shares (hopefully at a lower price) to […]
Bullish and Bearish Option Trading Strategies
If you’re interested in trading options, you’ll find that the markets can be responsive and dynamic. Trading with Credence Global Bank Invest provides insights and tools that can help you find appropriate option trades for just about any market outlook or environment. These trading environments can be categorized as bearish, bullish, neutral, or volatile. Each has its […]
The Costs and Benefits of Learning a New Language
It’s no big surprise that, in general, foreign language skills in the U.S. are a rarity. English is one of the most dominant languages spoken globally, which helps to explain why many of us here can get by with only speaking English — even when we travel out of the country! If we look at […]
What are Investment Objectives and why do I have to choose one?
Industry regulations require brokerage firms to know their clients. Part of this process involves gathering information about your trading experience, your financial background (including net worth and annual income), and your investment objectives. An investment objective is your overall outlook on trading for your account. Credence Global Bank needs an accurate picture of your goals because we […]
Short Selling Explained: Trading Strategies
How do you begin short selling as an investment strategy? A number of rules restrict which stocks may be shorted and the necessary conditions for shorting. This means you won’t always be able to short any stock you want, whenever you want. Working with an online brokerage service like Credence Global Bank Invest ensures you have plenty […]
Short Selling Explained: Risks and Rewards
What is short selling, and what’s in it for traders? Short selling flips the old adage: buy low, sell high. Anticipating that a stock’s price will drop, a short seller performs this action in reverse: first they sell high, then they buy low. The tricky part is that the short seller doesn’t actually own the […]
Short Selling Explained: An Introduction
Short selling is very different from owning stocks. It's more complex, carries more risk and requires a higher degree of responsibility on the part of the trader engaging in this practice. Before jumping in, you should understand how short selling works and what rules govern your investments, plus the potential risks and rewards involved. Knowing […]
Short Put Strategies
When selling puts with no intention of buying the stock, you want the puts you sell to expire worthless. This strategy has a limited profit potential if the stock remains above strike A at expiration, but substantial potential risk if the stock goes down. The reason some traders run this strategy is that there is […]
