Options: The Concept of Equivalent Strategies

Naked put selling is equivalent to covered call writing in terms of where and how profits and losses are incurred. But it can be advantageous in terms of cost savings and potential reward. Talk to an investor who is involved in a covered call writing program about his doing some naked put selling instead and…

 

Protecting Against Price Drops: Puts Versus Stop Orders

This week’s AAII Weekly Features highlight these valuable AAII articles: Protecting Against Price Drops: Puts Versus Stop Orders: Put options limit the amount of potential downside, while stop orders (though costless) do not ensure a minimum price. Selecting Active Equity Mutual Funds: Don’t Get Caught in the Middle: Mutual funds with market-beating performance tend to…