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Dispelling A Popular Myth About Options

January 25, 2011
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Dispelling A Popular Myth About Options

Last month, I explained some of the basics of options and showed you how buying puts and calls can benefit investors. You can read that issue here. In the beginning of the article, I mentioned that approximately 75% of options expire worthless. And while that statistic may be true, it’s misleading because there are a huge number of options written that are designed to expire worthless. Let me explain this last point a little bit. Let’s say that XYZ Trading Group thinks that the S&P 500 SPDR (SPY), trading just above 129, has topped out and won’t go any...

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To Use Options Right, You Have to Understand Them

December 28, 2010
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Mention that you trade options at a party and you are likely to hear something like “Wow, that’s gutsy.”  That’s because investors have heard stories about people losing their shirts trading options or they’ve heard statements to the effect that 75% of options expire worthless. But the fact is, there are many ways to use options, and investing with options can actually be less risky than investing in stocks. Let’s start with the basics. What is an option? There are two kinds of options: puts and calls. A put allows the buyer to sell the underlying stock at a...

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Which Cabot Letter is Right for You?

December 24, 2010
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Happy holidays! I hope you’re having a wonderful season, surrounded by family and friends, with lots of food and fun. We get a lot of emails here at Cabot and one of the most frequently asked questions is, “Which Cabot letter is right for me?” As we’ve expanded over the years, we’ve offered more newsletters to reach a wider investing audience and fulfill our subscribers’ investing needs. But I know it can be overwhelming to figure out which one is right for you. So today, I’m going to try to help you sort them out! Each Cabot advisory offers...

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The 10 Secrets of Trading

June 7, 2010
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We recently introduced you to our newest newsletter, Cabot Options Trader, and last week, I introduced you to the editor, Rick Pendergraft. I recently interviewed Rick so you can get to know him, just like you do all the Cabot editors. Enjoy! Question: What can readers expect in Cabot Options Trader? Answer: With the test issues we have put together over the last few months, I have come to appreciate the idea of the Cabot Options Trader even more than I first anticipated.  As we continued developing the concept, I realized it was more than just option recommendations.  I...

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Meet the Editor of Cabot Options Trader

May 30, 2010
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We recently introduced our newest newsletter, Cabot Options Trader, and today, I’m going to introduce you to the editor: Rick Pendergraft. I recently interviewed Rick so you can get to know him, just like you do all the Cabot editors. Enjoy! Question: What’s your investing background? Answer: I have had a number of positions in the investment industry.  Investing first got into my blood back in high school when my economics teacher entered me and two other students into an investment competition.  In my freshman year of college I had a part-time job as a cold caller for a...

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