On June 21, from J. G., Ontario, Canada Thanks for yesterday’s post “How to use derivatives as a source of added income”. I like the thought of options trading, but I’m a little afraid to jump back in because of the volatility of NVAX. I have one NVVAX contract at $159.00. Have you found any […]
This is our weekly post dealing with derivatives (calls and puts). Over 80% of our members are interested in the subject. When the market opens at 9:30 AM today, June 21, Rosi and I plan to sell 18 just out-of-the-money covered call contracts on the 1,800 shares of Novavax (NVAX), which we hold in our […]
According to a recent survey, 83.3% of our members and subscribers are either involved with derivatives (calls and puts) or would like to be. Accordingly, we will deal with the subject on a regular basis, usually on Mondays. Properly carried out, derivatives can be a source of added income in a portfolio. Buffett himself uses […]
Resulting from its involvement in derivatives, in 1994, California’s Orange County declared bankruptcy. Resulting from its involvement in derivatives, in 1998, Long Term Capital Management needed a $3.6 billion bailout from 14 financial institutions in order to prevent market panic and collapse of the entire financial system. Gambling with derivatives, many individual investors keep losing […]
On May 31, 2021, from Dr. Sharon Bader of Lake Pleasant Dentistry, Peoria, AZ, USA Questions: We have been writing calls on Coca-Cola, just as a test case to get a feel for the procedure. Do we have to buy them only for 1 week or can we do 2 weeks ? How much can […]
Greetings everyone, First of all, a sincere thank you to all those who took the time to respond! We know that there are many, some legitimate, mostly hucksters, wanting some of your time. On Friday, May 28, 2021, we asked our members and subscribers to what extent they were interested in derivatives (calls and puts). […]
In 2020, there has been a 50 percent rise over 2019 in trading derivatives. Much of this is buying insurance by the big boys. Much of it is outright gambling — it gives speculators huge leverage. Financial weapons of mass destruction, Warren Buffett called this. After selling (writing) covered calls and cash-secured puts for a […]
On November 13, 2020, from J. G….Ontario Question and Monday Morning Millionaire Program Answer: I’ve been thinking more and more about trading options for income. One of my portfolios has about $350,000 in it. If I took about $100,000 and dedicated that to options income, I’m basically saying I would be OK with potentially losing […]
Our September 28 post talked about the difficulty of generating income in today’s low-interest environment. We stated that some of our members and subscribers are generating income by selling puts and calls. Some of our members are doing exactly that with Novavax (NVAX). This is an update describing what is (likely) possible, selling NVAX derivatives […]
If you are selling derivatives (always sell and never buy derivatives) as we described in Chapter 8 of Monday Morning Millionaire, take a close look at Novavax (symbol NVAX). If you are not selling derivatives, consider it. Call me at 705-441-4566. On July 31, 2020, we posted an article describing how our members earned 2% […]