All Posts Tagged With: "options expire"

Options Investing: Readers’ Questions Answered

The message boards from Investment U have been lighting up with comments and questions on options investing. And while we can’t give specific investment advice, I can answer some of the general questions that have popped up.

For example, one reader wanted to know how options can work with short positions – and referenced doing so on Yamana Gold (NYSE: AUY). We talked about protecting against downside risk with long positions the other day, so let’s look at the other side.

In this case, I’m assuming that you’re short on Yamana and trying to manage the position in order to not take a big…

12Aug2009 | Investment U | 0 comments | Continued

Why You Shouldn’t Buy Short-Term Options

While I was in Canada last week, Smart Profits readers sure did pound the mailbag! I returned to find several questions to my recent column on how to execute covered call trades.

For example, one reader wanted to know how options can work with short positions – and referenced doing so on Yamana Gold (NYSE: AUY).

Here’s how…

In this case, I’m assuming that you’re short on Yamana and are trying to manage the position in order to not take a big loss in case it moves against you.

The way to do this would be to buy out-of-the money call options to protect you against…

5Aug2009 | Smart Profits Report | 0 comments | Continued

When will stock market selling end?

All year long, as I guided my subscribers into the intermediate-term rallies and then the subsequent corrections, I said in these columns that the rallies would be worth going after but should be sold into as they failed, and downside positions should be taken, as our work called for "the market’s low for the year to take place in the Oct/Nov time frame."

But this far down? No, I did not expect this. Our downside target for the Oct/Nov low was the lower limit of the Dow’s bear market trading band, which was around 10,250. That would have been a serious…

15Oct2008 | Street Smart Report | Comments Off | Continued
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