Everand Logo

Welcome to Everand!

  • Discover millions of ebooks, audiobooks, and so much more with a free trial

    Only $11.99/month after trial. Cancel anytime.

    Trading Options on Tech Stocks - Selling Puts & Calls: The INCOME INVESTING FOR INDIVIDUALS Series
    Trading Options on Tech Stocks - Selling Puts & Calls: The INCOME INVESTING FOR INDIVIDUALS Series
    Trading Options on Tech Stocks - Selling Puts & Calls: The INCOME INVESTING FOR INDIVIDUALS Series
    Ebook68 pages48 minutes

    Trading Options on Tech Stocks - Selling Puts & Calls: The INCOME INVESTING FOR INDIVIDUALS Series

    By Alan Kerrman

    2.5/5

    ()

    Read preview

    About this ebook

    Selling Options on Tech Stocks is One of the Best Ways to Regularly Take Money Out of the Market

    As an individual investor who has finally realized that there is no HOLY GRAIL to tech investing, I’m intrigued by options premium and volatility. It's reassuring for me to know that there are great ways to take money out of the market on a regular basis, and that’s what I’ve included here. Right up there with the power of dividend stocks, selling options on tech stocks (covered calls, cash-secured puts, and credit spreads) always feels like a smart way to leverage my investments in ways that the institutional traders can. 

    Those old trader sayings tell us: "be the casino, not the gambler"... or "be the landlord, not the tenant..." That's the power of selling options. Turn your investments into an option-selling income generator. But if you prefer to keep your technology stocks, you can use regular options sales to reduce your cost basis, eventually even creating holdings that have been fully paid for. 

    Here's a short, actionable book by an individual investor for other individual investors -- showing some real examples from current option prices. These are NOT trade ideas, but rather strategies for you to apply to your technology stock and options trading research.

    LanguageEnglish
    PublisherNotable Media
    Release dateSep 19, 2015
    ISBN9781516391936
    Trading Options on Tech Stocks - Selling Puts & Calls: The INCOME INVESTING FOR INDIVIDUALS Series

    Read more from Alan Kerrman

    Related to Trading Options on Tech Stocks - Selling Puts & Calls

    Related ebooks

    Personal Finance For You

    View More
    View More

    Related podcast episodes

    Related articles

    • Article

      How To Set Yourself Free

      Sep 2, 2020

      One of my clients retired at 50 to become a full-time trader, hoping he could shrug off the rat race and the typical work-sleep-work life. Fifteen years later he is still “retired” and still trading full time. Now he calls it what it turned out to be

      6 min read

    • Article

      He Learned to Trade for Profit - and Can Teach You, Too

      Jan 31, 2019

      Raymond Rondeau, 55, of Exeter, R.I., is a trader, president of the New England American Association of Individual Investors chapter, and creator of AAII's new course, "Investing Strategies and Technical Analysis." When did you start trading? I began

      2 min read

    • Article

      Are You Gambling or Investing? Here’s How to Tell

      Mar 2, 2021

      Investing in the stock market over many decades offers most people an incredible opportunity to build wealth. Does that surprise you? If so, you’re not alone. Over the course of my career as a financial planner, I’ve found that many people look at th

      4 min read

    • Article

      Thinking About Day Trading? Read This First

      Sep 22, 2020

      In the midst of the pandemic, you may have noticed a rather unusual trend: More and more people are jumping into the stock market. Despite, or perhaps even because of, extreme volatility in the market and endless speculation about what could happen n

      3 min read

    • Article

      Covered Calls: One Way to Earn Extra Income on Your Stocks Without Additional Risk

      May 2, 2018

      "Boy, I would definitely sell Apple if it reached $170 again," a client said to me recently. Like many people, she believed entering a limit order at that price was the logical next step. As we explained, however, writing a covered call option might

      3 min read

    • Article

      How Options Can Help Your Portfolio

      Jun 3, 2020

      For some people, options trading conjures either fantasies of instant riches or nightmares of losing everything. But those are the visions of market-timing speculators, not long-term investors. For most investors with a long-term view, trading option

      7 min read

    • Article

      4 Closed-End Funds with Sky-High Yields

      Feb 1, 2018

      With robust yields and share prices trading at a discount to the value of their investment portfolios, these four closed-end funds are worth exploring now. For more about how closed-end funds work (and can add juicy payouts to your portfolio), check

      2 min read

    • Article

      10 Best ETFs to Buy for an All-Weather Portfolio

      Aug 30, 2018

      It used to be that investors asked themselves the question, "How many mutual funds should I have in my portfolio?" They still ask the same question of diversification, but more in terms of exchange-traded funds (ETFs). A portfolio of just two ETFs mi

      7 min read

    • Article

      How Investors Can Prosper With Technical Analysis

      Feb 6, 2019

      Many investment advisors and money managers have a little secret. They will proudly tell you that they rely heavily on fundamental analysis, carefully weighing earnings, market share, competitive environment and demographic trends to select the best

      5 min read

    • Article

      What I Learned from Losing $200 Million: The 2008 financial crisis taught me about the illusion of control, and how to give it up.

      Dec 24, 2015

      I’d lost almost $200 million in October. November wasn’t looking any better. It was 2008, after the Lehman Brothers bankruptcy. Markets were in turmoil. Banks were failing left and right. I worked at a major investment bank, and while I didn’t think

      15 min read

    • Article

      The Power of Index Funds

      Mar 7, 2019

      John Bogle used to joke that investing in managed mutual funds was like a second marriage: "It's the triumph of hope over experience." Bogle, an investment industry legend who died in January at 89, could have said the same about his own life. He sur

      5 min read

    • Article

      A Little Hedging Can Go a Long Way to Protect Your Retirement Savings

      Jun 10, 2020

      "Don't worry, the market always comes back." If you haven't heard this comment yet -- from a well-meaning friend or co-worker, or maybe a concerned financial professional -- you almost surely will. We're all hoping for the best but bracing for the w

      4 min read

    • Article

      5 Stocks to Own for Decades

      Jan 26, 2022

      In 2008, two investment managers crunched more than 20 years of market data and produced findings that can only be called shocking. Eric Crittenden and Cole Wilcox found that most stocks did significantly worse than the overall market averages over t

      4 min read

    • Article

      A British Trader Who Caused A 'Flash Crash' That Sent Stock Market Into Dive 10 Years Ago Avoids More Prison Time At Chicago Sentencing. 'I Could Never Survive That.'

      Jan 29, 2020

      CHICAGO - Ten years ago, trading futures from his parents' suburban London home, Navinder Sarao shook up the investment world when his computer program set off the "flash crash," causing the stock market to temporarily lose a trillion dollars in a ma

      3 min read

    • Article

      When It Makes Sense to Buy the Dip

      Jan 3, 2019

      Around the beginning of 2018, the volatility of the stock market suddenly picked up. It was a worrying development for most investors, who prefer a smooth ride to a turbulent one. But volatility is a necessary condition if you want to deploy a strate

      5 min read

    • Article

      16 High-Yielding Monthly Dividend Payers

      Sep 7, 2018

      What income investor doesn't love the frequent payout and reliable cash flow that can come from owning monthly dividend stocks, trusts and other entities? The ability to offset predictable expenses such as mortgage payments and utility bills every mo

      13 min read

    • Article

      A Tax Guide for Investors

      Mar 7, 2019

      For most people, tax time is about as much fun as taking a bath with an electric eel, and taxes on your investments can be particularly confusing and irksome. Nevertheless, if you make wise use of capital losses and gains, you may find that you owe l

      7 min read

    • Article

      The Only Two Vanguard Index Funds You Need for Retirement

      Jan 19, 2018

      Every year or so, I pen a column about how to invest for the long haul using just a handful of Vanguard index funds (read the latest version: "6 Best Vanguard Index Funds for 2018 and Beyond"). Without fail, this article is more popular than anything

      3 min read

    • Article

      Why Inverted Yield Curve Panic Is Overdone

      Mar 30, 2022

      In case you haven't heard by now, the "2-and-10" yield curve momentarily inverted this week. Some market participants and financial media have responded with alarm, and given this signal's singular track record of predicting U.S. recessions, that's n

      4 min read

    • Article

      How To Retire On $500,000

      Sep 23, 2019

      How To Retire On $500,000
      7 min read

    Related categories

    Reviews for Trading Options on Tech Stocks - Selling Puts & Calls

    2.5/5

    3 ratings0 reviews

    What did you think?

    Tap to rate

    Review must be at least 10 words

      Book preview

      Trading Options on Tech Stocks - Selling Puts & Calls - Alan Kerrman

      Preface

      Selling Options on Tech Stocks is One of the Best Ways to Regularly Take Money Out of the Market

      As an individual investor who has finally realized that there is no HOLY GRAIL to tech investing, I'm intrigued by options premium and volatility. It's reassuring for me to know that there are great ways to take money out of the market on a regular basis, and that's what I've included here. Right up there with the power of dividend stocks, selling options on tech stocks (covered calls, cash-secured puts, and credit spreads) always feels like a smart way to leverage my investments in ways that the institutional traders can.

      Those old trader sayings tell us: be the casino, not the gambler... or be the landlord, not the tenant... That's the power of selling options. Turn your investments into an option-selling income generator. But if you prefer to keep your technology stocks, you can use regular options sales to reduce your cost basis, eventually even creating holdings that have been fully paid for.

      Here's a short, actionable book by an individual investor for other individual investors -- showing some real examples from current option prices. These are NOT trade ideas, but rather strategies for you to apply to your technology stock and options trading research.

      Introduction

      Thank you so much for reading my latest book: Trading Options on Tech Stocks: Selling Puts & Calls (Real Examples to Generate Options Income and more)!

      Individual investors need to stick together, and we need to share actionable information. That's why I wrote my recent book on Dividend Reinvestment Plans (DRIPs), and that's why I'm writing this options book. I want to share the kind of things I think about with my own personal, self-directed investing. I learned these strategies -- not to become rich -- but to support my family well, plan for retirement, create streams of income, and pay off our home and any debts.

      It's easy to write a book like this because it's downright fun for me to talk about this stuff. Seriously, these are two of my favorite things: tech stocks and options! If we met on the street, at a cocktail party, or some other event or function, and started discussing my interest in finance and trading, these are the kinds of things I would share with you. And since I'm NOT a financial professional, I get to be completely honest, irreverent, contradictory, and downright open about what I feel.

      I wrote this book to share with you ways I use options -- six primary trading strategies -- specifically applied towards technology growth and income stocks. There are other ways of course -- some simpler, some more advanced -- but this is how I trade options, and how I make money with options, so I'm happy to share with you what I do.

      So here it is, my truth:

      1. The finance professionals are out to get us [well, okay... maybe not all of them, but a heck-of-a-lot of them!]. We're just sheep to them, and the less we know, the more money they make. Fight back, people -- armed with knowledge, and skills in the financial markets.

      2. The annual fees that even simple mutual funds take from your work 401K (or 403b) retirement accounts should drive you completely batty! It makes me crazy! I don't mind spending money, but I should get more 'upside' for my added fees/risk. Some of these managers consistently trail index funds - which means we pay for management, but they can't even match their market benchmark indexes. Not saying it's easy, but these ridiculous fees don't help us.

      3. We're supposed to think

      Enjoying the preview?
      Page 1 of 1