Stock Basics: An Investor’s Guide
Everybody knows the old maxim buy low, sell high, and we all hear rumors around the water cooler about stocks that are poised to take off. Some people think that's all you need to know to make a killing in the stock market. Those people are wrong. Before you begin to invest in stocks or […]
Tax Implications of Trading
Manage your trading taxes more efficiently If you dread unraveling the tax implications of your trading activities each year, it’s time to take hold of these issues. With a few basics under your belt, you can partner with your tax preparer to manage your trading taxes more proactively, resulting in less aggravation and, hopefully, a […]
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 […]
Long Common Stock on Margin
The Strategy This strategy is similar to long common stock , but on steroids. That’s because when buying stock on margin you normally put up only half of the money to purchase the stock and borrow the other half from your broker. Although the benefit of trading on margin is a boost to your available […]
Protective Put Strategies
About the Security Options are contracts which control underlying assets, oftentimes stock. It is possible to buy (own or long) or sell (write or short) an option to initiate a position. Options are traded through a broker like Credence Global Bank Invest. Before trading options carefully consider your objectives, the risks, transaction costs, and fees. The Strategy […]
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 […]
Put Options Explained
It’s strange but true: many investors who are perfectly comfortable trading call options get a little squeamish around put options. Puts are certainly nothing to be afraid of. When used properly, they can add a whole new dimension to your trading. What are puts, exactly? Put options are basically the reverse of calls: a call […]
Investing in Growth Mutual Funds
Growth mutual funds, as the name implies, invest in growth stocks. A growth stock is typically a younger, burgeoning company with earnings or revenue that’s growing faster than the average firm. Instead of paying out dividends to investors, growth firms usually choose to reinvest their earnings to support rapidly expanding operations or develop new products […]
What is Implied Volatility?
Implied volatility (IV) is one of the most important concepts for options traders to understand for two reasons. First, it shows how volatile the market might be in the future. Second, implied volatility can help you calculate probability. This is a critical component of options trading which may be helpful when trying to determine the […]
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 […]
