Written by Joseph Perry on May 15, 2012.
Uncovered puts can but a very profitable and effective way to trade options. Traders engage in selling puts when technical analysis and fundamental analysis of the equity market in general and the underlying equity in particular will be stable for the course of the options contracts. Selling puts places an obligation on the seller to sell the underlying if the buyer so chooses. This is unlike buying puts or buying calls where the buyer has the option but not the obligation to buy or sell. Uncovered options trading is when the trader does not own the underlying equity to begin with. In the case of uncovered puts the trader believes that stocks, commodities, or futures will not vary in price or will go up in price. Thus the buyer will not choose to sell the equity. The seller of uncovered puts gains the premium paid and goes on to the next trade.
Trading uncovered puts and uncovered calls are, over time, the more profitable option trading strategies. Read more…
Written by Joseph Perry on May 5, 2012.
News on the economy is still decidedly mixed and continues to lean a little to the negative. Small business owners, too, report a mixed outlook on their economic futures, with some weighing in with (albeit) guarded optimism, others, not so much. Still others report a “wait and see” position, although patience is wearing thin on this front. Overall, we’d have to say that everyone, regardless of business size or sector, just wants to see some tangible evidence that we’re (finally!) headed in the right direction. In other words, Show me the money!
So while the economy sputters along, we’ve heard that some small business owners are looking for ways to diversify or even start up something new. Or you may finally be ready to pull the trigger on starting your own business after thinking about it for so long. If you fall into any of these categories, here’s some food for thought.
First, a little optimism. In a recently-
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Written by Joseph Perry on April 15, 2012.
Readers Question: is the presence of inflation essential to the economy, is there any good that inflation will do to the economy as a whole?
The government have a target for inflation of 2%. In other words they would rather have inflation of 2% rather than 0%.
- Inflation of 2% seems to be consistent with sustainable economic growth. If inflation fell to 0%, there is a fear of deflationary pressures which could cause a sharp fall in consumer spending.
- It is also felt that with a low rate of inflation like 2%, it is easier for relative prices to adjust.
- Also, a moderate inflation rate of 2%, helps nominal wages adjust. For example, with inflation of 2%, you can cut someones real wage by 2%, by keeping nominal wages the same. However, if inflation was 0%, you would have to cut wages by 2% to get the same real wage cut.
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Written by Joseph Perry on April 2, 2012.
The cost of higher education is rising at a record pace, which has put a financial strain on college students and on their families. Students are looking for ways to save a few bucks whenever possible and saving every penny on your college education can definitely add up in the long run. To get you started, here are some things that you can do as a college student to cut college costs:
- Speed up the process: If possible, take the maximum amount of credit hours allowed per semester to speed up the process and graduate in a timely manner. There are also accelerated programs available to help you earn your degree in a shorter time frame. Speeding up the process will require a heavier case load, but the money saved is worth the hassle.
- Experience counts: Some colleges will award credits for life experiences.
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Written by Admin on March 26, 2012.
I bet that you already know that no credit check loans are offered by many different private lending companies. The most important thing that you have to take into consideration is represented by the fact that your job plays an important role in the process of getting a no credit check loan.
By simply running a deep search on the web you will convince yourself that most private lending companies require their customers to prove that they have a stable job. It’s important for you to know from the very beginning that you will never be allowed to get a no credit check loan if you don’t provide the lender with details about your employer.
Another important thing that you have to keep in mind is represented by the fact that if you’re interested in getting a no credit check loan from a private lending company you will have to make sure that you’re able to prove that you have a stable job.
Low Interest Personal Loans – the Preponderance of Your Income
Regrettably, there are not too many people who know that their monthly income plays an important role in the process of achieving low interest personal loans. Read more…
Written by Joseph Perry on March 19, 2012.
Not very much about St. Patrick’s Day is hidden! What with parades, green beer and the wearing of the green, the Irish and Irish wannabes come out in droves to celebrate. For many, it’s a chance to remember and honor their heritage; for others, it’s an excuse to blow off some steam on an early spring day after a long winter. Regardless, it’s become a tradition— a big, fun event.
Believe it or not, behind all the revelry are some real takeaways –for life and for business. A bit of a stretch, you say? Take a wee look and feast on some food for thought.
Takeaway #1: The power of storytelling.
How many of us think St. Patrick drove all the snakes out of Ireland? Surprisingly, that didn’t happen! But it’s a story that’s been passed down through the centuries and that endures today. Why? Because there’s something about this kind of bigger-than-life hero mythology that resonates. We like heroes and so
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Written by Joseph Perry on March 11, 2012.
Play now, die later?
Most new retirees face that vexing question. They’ve got their bucket list of things to do. They want to do it now. But each item on their list will require spending more money than they can do safely. This is a real rock/hard place dilemma.
“I want to do these things now, while I can,” reader letters say. “I don’t want to have some future disability make it impossible.”
Well, maybe you can do just that: budget an additional amount in the early years of retirement and spend less later.
One framework for thinking about this is the new taxonomy of aging. Where turning 65 once made you “old,” demographers now identify three groups:
? The “young-old” are those between 65 and 74.
? The “old” are between 75 and 84.
? The “old-old” are 85 and older.
The faces of the “young-old” adorn the covers of magazines for active retirees.
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Written by Joseph Perry on March 2, 2012.
Readers Question: Does money printing/QE always lead to inflation and price increases?
No. Increasing the money supply does not necessarily cause inflation. In particular, we have seen a large increase in the monetary base (narrow money) that hasnt led to an increase in the general price level.
If you look at between money supply and inflation you can see situation in US where increase in monetary base failed to cause inflation.
Readers Question: If the new money is not spent and sits in accounts, how does this lead to inflation?
That is the key issue. In a deep recession, banks dont want to lend, therefore they tend to keep this extra money in their bank reserves. Therefore, the extra money creation has little impact on the overall price level because there is not an increase in bank lending.
If the economy was booming, then this extra money would be lent to consumers and firms.
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