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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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Predicting the Future, Twitter-Style

January 21, 2011
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Predicting the Future, Twitter-Style

I’ve often thought if I were to operate a storefront as a psychic (and don’t ask me why I’d end up in business as one), the first thing I would say to everyone who walked through the door would be “I was expecting you.”  It certainly would make a favorable impression, especially to those inclined to use a psychic’s services. But can anyone tell the future? Foreknowledge of events has been the subject of intense speculation from the Oracle of Delphi through the science fiction movies of today. So it is in the stock market too. One recent sign...

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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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