Month: December 2024
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The basics of selling stock options as part of a value strategy
In the last post, we talked about buying options and why the time value decay of the option as it gets close to expiration leads to a loss of value. If the stock does not move in the direction that you need it to, the option will expire worthless or with substantially less value due…
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What are stock options and why should you avoid buying options?
In the next few posts, I want to talk about stock options and various strategies surrounding stock options and why most of them are bad. But before I do that, I want to make sure everyone understands what stock options are. So, the next two posts will be more basic explanation of these instruments, and…
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You are not smarter than a hedge fund
I see a lot of people recommending “hidden gems” on value investing forums. They pour over financial reports of cigar butts and net-nets to try to uncover these gems that everyone else has somehow missed. I am here to tell you that it’s unlikely that hedge funds and other savvy investors missed anything. The odds…
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Behavioral and emotional temperament necessary for successful investing
We have talked a bit about the mechanics of investing and some of the rules to follow while investing. However, an often overlooked aspect of successful investing is the emotional and behavioral aspect. It is one thing to know that you should have a buy and hold attitude through thick or thin, but it is…