Introduction The Protective Call is a hedging strategy wherein the trader, who is having an existing short position in the underlying security, buys a Call option to hedge against an increase in the price of the underlying security. In this strategy, a trader sells a position in the underlying asset (shorts shares or shorts futures) … Read more
Historically speaking, small-capitalization companies have often outperformed larger companies even after considering the additional risks that smaller companies carry. This is why they have attracted investors’ attention for a long time. The attraction in small caps is due to their potential to become large companies, with their share price appreciating in the process. With numerous … Read more
Introduction The industrial goods sector is a category of companies that make or sell machinery, supplies, or equipment used in manufacturing and construction. These companies play a crucial role in the economy by supporting other industries. They supply the machinery, equipment and industrial tools that are used to produce consumer goods and services. Examples of … Read more
Investment guru Warren Buffett, a proponent of the value-based investing model, believes that people should invest in companies that exhibit solid fundamentals, strong earnings power, and the potential for continued growth. Don’t lose money. Don’t forget rule #1. Warren Buffett states that there are just 2 rules of investing. It focuses on investing based on … Read more
Introduction The Short Put Ladder is a limited risk, unlimited profit strategy in options trading that is employed when the trader thinks that the underlying security will experience significant volatility in the near term. A Short Put Ladder should be executed when one is expecting big movement in the underlying security price, favorably downside. The … Read more
According to Warren Buffet, “Price is what you pay, value is what you get.” A stock is said to be overvalued when the price of the stock is indeed more than its actual value. Investors would avoid buying these stocks as they might fear a correction in its price. Day traders and swing traders can … Read more
A watchlist is simply a list of stocks you are interested in owning. Creating your list in Excel, and using MarketXLS to view updated quality and valuation metrics on the stocks can assist in choosing the best time to enter a new stock position.
Overview of the Sector The basic materials sector is made up of businesses involved in the development, discovery, and processing of raw materials. This sector consists of companies engaged in metal refining and mining, oil, forestry products, and chemical products. The raw materials they develop are purchased by nearly all other industry sectors. This sector … Read more
