The Millionaire Blog

The ancient Greeks are justly praised for inventing much of elementary mathematics. But it was left to moderns to create the tools that help options traders quantify risk and calculate prices. Chief among these tools are several quantities known fondly as The Greeks: delta, theta, gamma and vega.
While the underlying mathematics is heavy going, the […]

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Unlike stocks, options have an expiration date. Unless a company goes bankrupt or buys back all its stock, the stock investor always has the choice to wait for a price correction. Sometimes that wait represents the triumph of hope over experience, but more on that elsewhere.
That expiration date makes calculating an option’s value more complicated, […]

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Options - Hedging, Trim Risks Not Bushes
Options are frequently used in hedging.
A hedge is an investment made to offset the risk incurred by entering another investment. Ironically, the basic idea is to bet against oneself, in a way.
Speculate that the market price will rise in the future and buy a call today. (A call is […]

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Many readers want to know more details on Options calls and puts. So here is more information on this.
Options are contracts on some underlying trading instrument - shares of stock, bonds, a commodity, a mortgage loan, etc. (The list is endless.)
But regardless of what the option is on, there are common features. One of the […]

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Many readers wanted me to go through the fundamentals of Options. Here you go :-
Options - Calls and Puts
A ‘call’ confers on the (option) contract holder the right to buy an asset at a stated price on or before a specified expiration date. A right to buy, not an obligation. The call owner always has […]

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When a company’s stock prices goes to all time, it splits to make it easier for people to buy. So for example when Apple stock goes to around 90 (typically), the company announces a 2 for 1 stock split; basically you get 2 stocks for every stock you own. So if you own 100 stocks […]

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Many readers especially those who are retired are asking me some investing ideas with CDs; I have analyzed few offers and found one from www.everbank.com looks good. This CD they are offering is from Iceland and it gives APY of 8.24%. The minimum investment is $10,000. There are no monthly fees, FDIC insurance, online access […]

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Many readers have contacted me to learn more about options; I will be adding links where our readers can learn more about options and make more profit.
Here is a page from Fidelity where you can find valueable information.
http://personal.fidelity.com/products/stocksbonds/content/options.shtml
Good luck!

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I know many people who trade stocks. Most of the US house holds have stocks in various companies. Have you tried options?
Many people think Options are only for professional traders and the big boys. It is not so. Let me explain in simple terms what are the pros and cons of options.
Here is how the […]

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Investing in the Stock Market
by: Charles M. O’Melia
From the book ‘The Stockopoly Plan’ by the author Charles M. O’Melia
There are several factors an investor in the stock market should consider:
1. All stock purchases should be commission-free.
2. All stocks purchased should be from a company that has a history of raising their dividends […]

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Mutual Funds: What Investors Need to Know About Morningstar Mutual Fund Fiduciary Grades
by: Sam Subramanian
Morningstar now provides Fiduciary Grades on mutual funds. How does Morningstar determine these grades? How can mutual fund investors use these grades to better manage their portfolios?
Mutual fund investors use Morningstar Rating™ as a sign post of mutual fund performance. These […]

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Alexander Kintis over at Beating Addiction was kind enough to point me to a very good article written by Liz Pulliam Weston a columnist for MSN. In the article she writes about 5 lessons we can all learn from millionaires and the wealthy. These lesson truly are powerful. I especially like number 4 because most […]

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