Sound Financial Guidance for Investors Trading Options
Based in Cincinnati, OH, Schaeffer’s Investment Research is offering resources to investors on options trading including Schaeffer’s Options 101. In the first module, option basics are described including topics on stock options, puts and calls.
The uses and advantages of options are illustrated to enhance the learning process. Key option concepts are explored in detail such as leverage, volatility, options pricing and open interest. This helps investors understand the dynamics of the market. Schaeffer’s Investment Research uses the experience of its staff, industry best practices and decades of market research to create clear and concise resources for investors.
Options trading mechanics are described to give investors a foundation for building option strategies. Knowing when to enter and exit an options trade is important, because these points dictate the profit or loss on a trade. Terminology such expiration, assignment and exercise are covered to further help investors understand the trading process. Schaeffer’s Investment Research explains the trading process so that investors can use options to their advantage in variable market conditions.
In the option strategies module, investors are introduced to a variety of methodologies for using options effectively. This includes bullish, bearish, sideways, hedging and volatility strategies. Each method is clearly outlined, giving investors the tools to use options based on their risk profile, market conditions and their investment objectives. Knowing the right strategy to implement is a function of judgement and market conditions. Schaeffer’s Options 101 helps investors improve their understanding and judgement through effective guidance.
Additional modules include one on volatility and another on expectational analysis. These two modules provide technical information to help investors understand the nuances of the options market. While these concepts can be difficult to understand, Schaeffer’s Investment Research provides detailed explanations and resources to make the concepts less daunting. With the right guidance, anything is possible with options trading and investing.
Established in 1981, Schaeffer’s Investment Research provides market commentary, trading recommendations and options education to investors. The firm is the longest running options trade alert provider in the world. Investors get the information, guidance and alerts needed to make effective decisions on stock and options trading.
Premium services, including Elite Trader and Ultimate trader, give investors an edge in the markets through effective tracking and trading mechanisms. Investors have the tools and resources at their disposal to win in the markets.
Options trading can be broken down into two categories. There are call options and put options. Call options let the holder buy an asset at a certain price within a certain timeframe. Put options let the holder sell an asset at a certain price within a certain timeframe. The experts at Schaeffer’s Investment Research recently discussed common strategies for options trading.
“A common options trading strategy is known as the ‘long call.’ This involves buying a call option and wagering that the stock will exceed the strike price before the expiration,” Schaeffer’s Investment Research experts said.
Another options trading strategy is known as the long put. This is similar to the long call and involves wagering that the stock decline below the strike price before expiration. The long put strategy is essentially the opposite of the long call strategy.
“The short put is an options trading strategy that involves wagering that the stock will rise or remain stagnant until the expiration time. The put will expire with no worth and the seller receives the entire premium,” Schaeffer’s Investment Research experts said.
The covered call is a more complicated options trading strategy. It is a two part process, which involves the investor owning the underlying stock then selling a call on that stock. The investor gives away any appreciation above the strike price in exchange for a superior payment. The point of this strategy is to wager that the stock will go down slightly until expiration or stay flat. Ideally, this strategy lets the seller keep the premium as well as the stock. However, if the stock increases above the strike price, the seller must sell the shares to the call buyer at the strike price.
“The married put is another complicated yet often beneficial options trading strategy,” Schaeffer’s Investment Research experts said. “It’s more than a basic options trading strategy, but it can also offer more reward.”
Experts state that the married put involves combining the long put strategy with ownership of the underlying stock and “marrying” them. The investor will buy one put for 100 shares of stock, and the investor will continue to own the stock with potential for appreciation. A simple comparison is between this strategy and purchasing insurance. The owner pays a premium for protection against a possible decline. An investor would use a married put if they’re hoping for continuing appreciation of the stock while protecting the gains they’ve already incurred.
The Schaeffer’s Investment Research team suggests consulting with a trading expert to learn more about options trading and if one or more of these strategies can work well for you.
Starting To Trade? Schaeffer’s Investment Research Advises You To Keep These Factors In Mind
Investing in stocks, options, bonds, and other financial instruments can be intimidating. Make the right investments and you could see your wealth grow. Make the wrong choices, and you could lose a lot of money. Schaeffer’s Investment Research, a leading investment and options research firm, argues that investors should do their homework before they start investing.
“Investing is a powerful tool for growing wealth,” notes Bernie Schaeffer, the founder of Schaeffer’s Investment Research and a leading options expert. “It’s not just about the famous investors making billions, but families planning for retirement or college. Before you start investing, however, you should engage in some self-education.”
The experts at Schaeffer’s Investment Research believe that when it comes to investing, knowledge truly is power. By expanding their knowledge and learning about how investment markets work and how different investment vehicles function, including stocks, bonds, and options, investors can mitigate risks and protect themselves.
Beyond understanding the details regarding specific markets and investment vehicles, Schaeffer’s Investment Research’s investing pros also note that new investors need to keep an eye on macro trends. Strong government stimulus packages could bolster markets, while economic downturns can cause even good investments to turn sour as markets suffer widespread losses.
Risk is especially important when it comes to investing. There’s a general maxim that increased potential for profit correlates with increased risks. An investor can invest in penny stocks, for example, and some see returns in excess of 100 percent within a few weeks or even days, hours, or minutes. Schaeffer’s Investment Research reminds investors, however, that risks will also be high and investors could lose all or most of their money when investing in penny stocks.
On the other hand, the experts at Schaeffer’s Investment Research note, an investor can invest in an established Silicon Valley tech giant and they likely will not lose all of their money over the course of days or years. Yet investors investing in tech blue chips also likely won’t enjoy 100 percent gains over a few months.
The professional investors at Schaeffer’s Investment Research often advocate for investors to diversify their portfolios. Investing some capital in higher-risk investments can be wise. However, it’s smart to balance that high risk with lower-risk investments, such as in blue-chip stocks or government bonds.
Schaeffer’s Investment Research Talks About Options Trading
Schaeffer’s Investment Research focuses especially on options investing. Options have a reputation for being high-risk. However, many investors use options to decrease risks. If an investor holds a big stake in a certain stock, for example, options based on that stock can be used to protect investors from declining stock prices. You can buy the “option” to sell the stocks at a higher price.
Before investing in options, however, investors need to educate themselves. Schaeffer’s Investment Research has helped countless investors develop effective options trading strategies that can mitigate risks or produce profits.
The Benzinga Cannabis Capital Conference will be featuring leaders from many industries including one of the industry’s top investment research firms, Schaeffer’s Investment Research.
Schaeffer’s Investment Research, one of the industry’s leading investment firms, recently announced that it would be presenting at the upcoming Benzinga Cannabis Capital Conference. The only thing arguably hotter than this ticket, which is free by the way, is the topic – the Cannabis market.
Schaeffer’s Investment Research will use this as not only a forum as a teachable moment for their investors and clients but also as an opportunity. This late February event couldn’t be more timely either, as the most recent projections for this booming market are lucrative and growing. That is also the wheelhouse for Schaeffer’s team, and that is where those aforementioned opportunities arise.
Schaffer’s Investment Research is built on the ability, using proprietary methods, to accurately determine key factors like the direction of a stock or market movements. Now, it is time for those skills and that leadership to take center stage.
Schaeffer’s Investment Research Views Conference as an Opportunity to Teach, Guide, and Lead
At Benzinga’s Cannabis Capital Conference, to be held virtually, participants will have the opportunity to connect, network, and share thoughts, ideas, and insights into this thriving new market. And who better to help guide, lead, and help people get the most out of these rare opportunities than Schaeffer’s Investment Research?
The conference itself will offer live presentations via interactive forums and feature serious investors, leading CEOs, and frontrunners within the cannabis space. This is also just another example of how Schaeffer’s Investment Research is there for their clients =literally, figuratively, and in this case, virtually too.
It has been four decades now that Schaeffer’s has been helping clients navigate the often volatile waters of the market. From their beginning in 1981, they have led with innovative ideas like that proprietary forecasting method (Expectational Analysis(R)) and strategic excellence. The results have been a history of consistency, reliability, and success in the market.
Leading this top Investment Research firm is Bernie Schaeffer, who also is an Options guru while heading the SIR team. To say the future has never been more green might be more accurate than it is funny, but if past indicators are any predictor, it also couldn’t be more true for Schaeffer’s Investment Research.
Maximizing Your Economic Impact Payments
The US government response to COVID-19 includes issuing economic impact payments to help its residents weather the financial storm caused by the temporary shutdown needed to prohibit the spread of the virus. This blog from Schaeffer’s Investment Research Review examines ways to get ahead financially using the EIPs the US government recently issued. You can pay down credit cards or a loan with the check to save on outgoing interest payments, or invest it in one of the AAAS top stocks priced at $10 or less.
The First EIP
Some individuals who qualify for the EIP have yet to apply for it. Typically, those individuals did not file income taxes in 2019. This means the Internal Revenue Service (IRS) has no data on their income to determine if they qualify. These individuals need to complete a short form on the IRS website to determine eligibility. The first EIP of $1,200 transmits to them via direct deposit, debit card, or paper check if they qualify.
The Second EIP
In late December 2020, Congress approved a second EIP that the IRS began mailing and transferring the first week of January. The second payment equals $600. An individual’s qualification for it hinges upon their last income tax return as well.
Using the Money Wisely
Of course, your use of the money depends upon your situation. If you have bills piled up from being out of work, you need to use the money to pay those. If you kept working during the pandemic though and have your bills paid, use the money to get ahead financially.
- Credit card bills and loans: If you have outstanding loans of any type, put the money toward paying them off. You could save big on interest payments by making a lump sum payment. This also helps your credit score.
- Savings: If you do not yet have at least $1,000 in savings, put the money in a high yield savings account to create an emergency fund.
- Investments: If you have your loans paid off and you already created an emergency fund, you should put the $600 to $1,200 into your investments fund.
While the country’s unemployment rate did rise to nearly 14 percent at the end of the first quarter of 2020, a dearth of remote work positions has reduced it, although it has yet to fall to the three percent rate it held pre-pandemic, explains Schaeffer’s Investment Research Review. That means most people do still work so, for many this provides an opportunity to get ahead
Schaeffer’s Investment Research Review experts discuss 10 mistakes to avoid when trading options.
Mistakes are inevitable when navigating the stock market. However, understanding mistakes that can potentially occur can help you prevent them and experience more success when trading. The experts at Schaeffer’s Investment Research Review recently discussed 10 mistakes to avoid when trading options.
The first potential mistake outlined by Schaeffer’s Investment Research Review is the misallocation of capital. They explained that the money you commit to trading options should be less than what you commit to trading with stocks. This is because, while there is a chance to see 100%, 200%, 300%, or more in gains when trading options, there is also a possibility you could lose all that you’ve invested.
Schaeffer’s Investment Research Review traders added that a high win-rate does not always mean profit. They explained that those with high win-rates when trading options tend to achieve profits quickly and hold onto losing trades, which can result in disaster. Another mistake they emphasized should be avoided is not diversifying your options trading portfolio. Diversifying strategies helps combat unknowns in varying market environments.
The experts at Schaeffer’s Investment Research Review explain that many mistakes result from a lack of discipline. This can be in the form of taking short cuts and ignoring common guidelines. Successful options traders have an average win that is higher than the average loss, and they know when to cut losses. Schaeffer’s Investment Research Review experts added that options traders should always be open to signals or clues that point you in a certain direction. Ignoring such signals will give others a competitive edge.
The Schaeffer’s Investment Research Review team stated that traders who want action all the time will be less likely to succeed when trading options. Options traders must assess risks and reduce them as much as possible through following certain guidelines and practicing patience. Another major mistake outlined by Schaeffer’s Investment Research Review is buying the cheapest options without fully understanding the factors that determine an options price. The extremely cheap options are the most likely to be worthless at the time of expiration.
Poor options selection is a common mistake when trading options. It’s important to take into account your risk tolerance as well as the expiration you select. Timing is everything when trading options, which leads to another mistake outlined by Schaeffer’s Investment Research Review. The experts stated that focusing on singular time frames is a common mistake made by options traders who are new to the game. Don’t get fixed solely on daily or monthly charts.
Finally, the team at Schaeffer’s Investment Research Review suggested being aware of the difference between the ask price and the bid price. They warned against trading illiquid options with wider spreads, which can lead to slippage over time.
Trading options can be extremely rewarding, but like all investments, it comes with risk. Avoid the mistakes outlined by Schaeffer’s Investment Research Review, and you could be on the path to doubling, tripling, or even quadrupling your investments.
Schaeffer’s Investment Research experts recently offered swing trading tips for beginners.
The coronavirus pandemic has brought a rise in day trading enthusiasts. Citizens across the country are spending more time at home and many are not working as much as they were pre-pandemic. The experts at Schaeffer’s Investment Research stated that options trading can be a lucrative and fun game. However, it can also be a dangerous one, so they provided several tips to help options trading beginners start on the right track.
“One of the most important things to keep in mind is that options trading isn’t an easy way to make money,” Schaeffer’s Investment Research experts emphasized. “It takes a lot of research and time to make a real profit.”
Schaeffer’s Investment Research experts explained so many people have entered options trading, because they’re seeing their friends post profits on Facebook, Instagram, and other social media platforms. However, those profits can be deceiving and the people making them may be spending a lot more time researching than they suggest. Schaeffer’s Investment Research experts explained that knowledge is power when it comes to options trading, so it’s essential to keep up with stock market events and news.
“Be sure to set yourself a portfolio trading limit before you begin,” Schaeffer’s Investment Research experts added. “Assess the amount of capital you’re willing to risk overall as well as on each individual trade.”
Schaeffer’s Investment Research experts explained it can be easy to pour a lot of capital into options trading. It’s most important to put a specific amount of capital in your account and choose a percentage you’re willing to risk on each trade. Many successful traders only risk about 1 percent of their available capital per trade. Schaeffer’s Investment Research suggest also setting aside any surplus funds you’re willing to trade at a higher risk percentage.
“We always suggest avoiding crazy deals like penny stocks,” Schaeffer’s Investment Research experts added. “You may be looking for a great price, but these stocks rarely produce solid profits.”
Schaeffer’s Investment Research experts explained that most stocks trading for under $5 per share are not listed on major stock exchanges, so the chances of a reliable profit are nearly zero. They suggest steering clear of these types of stocks from the start. However, Schaeffer’s Investment Research did explain that starting small, in terms of the number of stocks you choose in a session, is ideal at first. Focus on one to two stocks per session then move up from there as you gain experience.
“Options trading can thrilling and profitable if done correctly,” Schaeffer’s Investment Research experts said. “Remember to take it slow, do your research, and keep your expectations realistic.”
Schaeffer’s Investment Research experts recently discussed common signals that it’s time to sell a stock.
Buy low and sell high. The movies make stock trading appear as simple as that. However, trading experts, like those at Schaeffer’s Investment Research, know it’s not that easy. Traders may need to sell at a loss before that loss gets any bigger, and sometimes selling can feel like an impossible decision. The Schaeffer’s Investment Research team recently discussed common signs that it’s time to sell.
“A major drop of 10 to 15 percent can be a telltale sign,” Schaeffer’s Investment Research experts said.”This is a common indication that the stock has already peaked, and it can be a good time to sell before things get worse.”
Schaeffer’s Investment Research experts added that traders can set up a “stop loss order” at about 10 percent below the high. The position is liquidated if the share falls more than that 10 percent. This lets traders enjoy a little peace of mind, knowing the stock will be sold before the loss gets any greater.
“You don’t always want to follow what the executives are doing, but if the executives of a company are selling their stocks, it usually means their indicating a serious share price drop,” Schaeffer’s Investment Research experts said. “They know if their sales are plummeting, it’s a characteristically bad quarter, if there’s new competition on the market.”
Schaeffer’s Investment Research explained that another telltale sign it’s time to sell is when a company begins to suspend or cut dividends. Companies tend to cut dividend payments when they are undergoing tough financial times. Schaeffer’s Investment Research suggested always keeping an eye on any regular dividends you’re receiving from a company, because if those are suddenly stopped or reduced, it’s a bad sign for the stock.
“Stock analysts hold the position they have for a reason. They don’t always make correct decisions, but if multiple analysts recommend a sell, we generally suggest paying attention,” the Schaeffer’s Investment Research team said.
The final telltale sign it’s time to sell outlined by Schaeffer’s Investment Research is when a stock is being shorted. Shorting a stock is a process used by experts, which involves “betting” that the share price is going to fall. If a stock increases greatly in a short amount of time, an experienced trader may short the stock, anticipating that the share price was overvalued and will fall greatly in the near future.
“Stock trading is a complicated process, and if there was a way to hack it, everyone would be doing so,” Schaeffer’s Investment Research experts finished. “However, these telltale signs serve as general guidelines to help you make the most of your trading experience.”
Trade alert provider Schaeffer’s Investment Research offers a closer look at its popular weekly market outlook, delivered straight to subscribers’ inboxes every Monday.
An exclusive preview and analysis of the macro events, technical levels, and options trading activity most likely to impact stocks in the short term, Monday Morning Outlook from Schaeffer’s Investment Research is the trade alert provider’s popular weekly newsletter. Delivered free of charge to subscribers’ inboxes each Monday, Schaeffer’s weekly market outlook promises a clear illustration of what traders can expect during the coming seven days.
“Get the Schaeffer’s edge every Monday, courtesy of our exclusive weekly market outlook newsletter,” suggests a Schaeffer’s Investment Research spokesperson, speaking from the company’s headquarters in Cincinnati, Ohio, “delivered for free, straight to your inbox.”
In Schaeffer’s Investment Research‘s free Monday Morning Outlook newsletter, Schaeffer’s Senior Vice President of Research, Todd Salamone, breaks down developing chart patterns, notable options strikes, and investor sentiment indicators in order to form a clear picture of what traders can expect during the coming week, and beyond. “It’s just the right mix of breadth and depth,” points out the firm’s spokesperson, “and the perfect read to prepare you for a week of productive trading.”
If an individual is serious about stocks, options, and successfully managing their portfolio, signing up to Schaeffer’s Investment Research‘s Monday Morning Outlook newsletter is a must, according to the Cincinnati-based investment research firm and trade alert provider. Subscribers each receive an email alert when Monday Morning Outlook goes live on the Schaeffer’s Investment Research website. Further to receiving an exclusive free analysis of the events and activities currently impacting stocks, subscribers are also invited to receive—again, free of charge—Schaeffer’s daily Market Recap, Opening View, and Midday Market Check newsletters.
Opening View contains a round-up of must-know market news and statistics ahead of the bell, while Market Recap is Schaeffer’s post-close analysis of the day’s major market-moving events, each sent for free via email. Midday Market Check, meanwhile, is Schaeffer’s Investment Research’s free intraday email update on data surprises, stocks in the news, unusual options activity, and more.
Established in 1981, Schaeffer’s Investment Research is now one of the industry’s top investment research firms. Widely recognized for its consistent performance and innovative approach to the market, the Schaeffer team is, the company says, wholly dedicated to the satisfaction of its subscribers, no matter how volatile the market becomes.
Led by options guru Bernie Schaeffer, Schaeffer’s Investment Research’s proprietary method designed to determine the directional movement of stock has now been giving Schaeffer’s subscribers the edge in volatile markets for close to four decades.
To sign up for Schaeffer’s Investment Research‘s free Monday Morning Outlook trading newsletter—or for Schaeffer’s Opening View, Schaeffer’s Market Recap, or Schaeffer’s Midday Market Check—head to the investment research firm’s website at https://www.schaeffersresearch.com/. Terms and conditions apply.
When it comes to trading stocks, things can be a little intimidating right now. Schaeffer’s Investment Research completely understands the reasoning behind this. With the pandemic raging on and protests dividing the country, on top of the usual ups and downs of businesses, who knows what is actually going on. Contrary to popular advice that says to stay put in a crazy market, Schaeffer’s Investment Research is looking into how individuals can take advantage of the current upheaval. In this article, we’ll go over some of Schaeffer’s Investment Research top tips on investing during unpredictable times.
1. Diversification is Key
Diversification is an excellent method by which you can mitigate risk. According to Schaeffer’s Investment Research, diversification can limit your exposure and can help you withstand market shocks. For example, had you been extremely bullish on airline stocks prior to the pandemic, your investments would have taken a nosedive. On the other hand, had you buffeted your airline stocks with some pharmaceutical companies, you wouldn’t have faced such a loss as those companies started to push higher with the news of several new vaccines. Schaeffer’s Investment Research‘s position is that every company as different and is like a double-edged sword. In order to blunt the effects of one of the edges, you should use the edge of another company that is doing well.
2. Take A Long Term View
Uncertain times don’t last forever. In 1918, the market self-corrected after the pandemic ended. It may have taken a few years, but it eventually came out of its funk. Schaeffer’s Investment Research predicts the same in this situation. That is why it is so important to take a longer-term approach when dealing with the market. While falling prices might indicate an immediate issue with the market and how investors currently feel, it can present an opportunity to the savvy trader. As Warren Buffet once said, “Be greedy fearful when others are greedy. Be greedy when others are fearful.” While the current pricing would suggest that you would lose money in the short term, holding on to a specific stock that you truly believe in could pay dividends when the market self corrects and the price picks back up in the future.
3. Don’t Stretch Yourself
Trading, by nature, is inherently stressful. Schaeffer’s Investment Research notes that people looking to invest should understand their tolerance for risk. While your time horizon may be better suited for risk, your psychology might not be on the same level. Schaeffer’s Investment Research believes that individuals should be comfortable with what they are doing in terms of trading first and foremost. If you are not comfortable with any trades you have made, this can have adverse effects on your psychology. What’s worse is that if you start seeing the result of this choice fail, it can play tricks on your mind. Schaeffer’s Investment Research advises people to speak with a professional who can determine their risk tolerance.
The stock market is inherently risky. The stock market during uncertain times, even riskier. By understanding who you are psychologically, taking a long term view, and diversifying, you can mitigate the problems typically associated with trading during unpredictable events.