Day trader, investor or options trader these levels are crucial to success.

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Warning: I am not a professional when it comes to the stock market. I am not licensed to give advice. This article is for informational purposes only. I appreciate any comments or insights you might have concerning this topic. Okay that’s out of the way, let’s get down to business.

I am looking into selling puts and using the wheel to provide additional income from the stock market. I am using about 2% of my investment dollars for this. The majority of my money (80%) is in index funds, and the balance is in an aggressive growth fund. I am…


Women’s contributions to our well-being are often overlooked.

Picture from 1904 patent application

A departure

This article is outside my usual topic area — finance. I write in other areas to keep my mind sharp and my writing skills honed.

The Landlord’s Game

I suspect you never heard of the Landlord’s Game and neither had I. It was invented by Elizabeth (Lizzie) Magie in 1904. Its purpose was to bash capitalism and expose the evils of letting it run without appropriate restraints.

This game was copied by Charles Darrow who sold it Parker Brothers 30 years later under the name Monopoly. It became a huge success and Parker Brothers magnanimously paid Elizabeth $500 (and no royalties) for inventing…


Can these strategies be successful?

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The options market

The nature of the options market allows for some very confusing strategies to be used. The basics are easy to understand. Buying a put allows the buyer to get insurance against a stock dropping in price. As with any kind of insurance, you are paying someone to take a risk you don’t want to take. The buyer has the right to put (sell) the stock to the seller of the put at a given (strike) price. The insurance (the put) has a time limit — it’s only good until the expiration date. The question (to which I have no answer)…


Identifying undervalued stocks is essential to popular forms of investing.

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If you’re doing anything with the stock market, spotting undervalued stocks is important. Buying and holding for the long term? Search for undervalued stocks, buy them and wait. Interested in selling puts? Best to sell the ones with the underlying stock having an upward bias. How can we design a search for these stocks?

DIY

If you want to start from scratch and develop your own program to find undervalued stocks, that avenue is certainly available to you. To do it successfully will require a lot of reading, starting with Graham and Dodd (which I read many years ago), Warren Buffett…


Here’s the good news based on April, 2021 statistics.

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There’s a lot of negativity out there. Some are predicting 15% inflation is right around the corner. The stock market’s gonna tank. And the sun god Ra is coming down from the heavens any minute with doom and disaster for us all.

Also there seems to be great distrust of anything government with the disaster-predictors castigating the government for pumping money into the economy. Actual the Federal Reserve, an independent body, manages the money supply. The Fed answers to no one; not to Congress, not to the President, not even to the citizens of the United States.

With all the…


Are return on investment calculations helpful?

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When getting involved with the stock market, the object is to make money. The question is how do we determine how much money we want to make and how do we measure if we’re reaching that goal or not.

The traditional way is to calculate return on investment (ROI) on an annual basis. When we say a stock has a 5% ROI, we mean that for every 100 dollars we invest to buy this stock, we expect to get back $5 per year. Is this traditional return on investment calculation the way we should approach and evaluate selling puts?

Investment?

Can…


Can theta values produce profitable option trades?

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Trading options involves a number of risks not associated with trading stocks. After buying or selling (short) a stock, the action is either profitable or not depending on the price movement of the stock period. With options it’s not so simple because there are other parameters affecting the value of the option. The Greeks tell a good part of the story of an option’s worth.

Option traders talk about the Greeks. They mean the Greek letters delta, theta, gamma, rho and a few others which are used to assess the risk of a particular option and effects on the current…


My take on what the experts advise.

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Warning: This article assumes you know the basics of options trading. If not, I recommend you read some articles on the subject before continuing.

I recently sold my house and moved into a rental apartment. I put the bulk of my money into mutual funds (60% in an index fund), but I reserved about 2% in cash. Looking around for something profitable, I decided to look into selling puts for additional income.

Strategy overview

After a long investigation, reading blogs and watching YouTube videos, I came across the wheel strategy which sounded promising. The objective…


Here’s some information to help you decide.

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Life insurance has a certain comforting ring to it, but it doesn’t truly describe what the product is. It does not insure that your life will go on. Its proper name should be death protection. It’s there to protect, not you, but those that depend on you financially should you die too soon. Can you image the salesman who says to you, “I’m here to talk about death protection.” Won’t make too many sales with that approach. So they call it life insurance.

What does dying too soon mean? In the life insurance…


A terrible idea.

Picture via St. Louis Federal Reserve and U. S. Census Bureau

It sounds so enticing on paper. If we have a federal balanced budget, and only spend exactly what we take in, all should be wonderful, economically speaking. Not so simple.

Look at two things taught in elementary macroeconomics classes that are being ignored. (1) The fallacy of composition, and (2) an annually balanced federal budget is not economically neutral and actually worsens the economic situation.

The fallacy of composition

The fallacy of composition is the error of concluding that what is true for an individual is true for the group as a whole. For example, saving is good for the nation. As the nation…

Joseph Liebreich

Been writing articles here and there for 15 years. I like to write about a variety of topics.

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