Steven Adams
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5 Benefits of a Covered Call
Purchasing stock to hold for the long term can be harrowing. In October the market swooned, only to recover all it’s losses. The drop could have easily taken an investor out of a position. Using a covered call, with the five benefits we discuss here, could keep an investor in a position that would otherwise […]
Continue reading3 Reasons BAC Warrants Look Pretty Sexy
I’ve traded BAC / BACWSA often since the warrants began trading. Sometimes I’m long warrants and short common, sometimes long warrants and short calls, and sometimes just long warrants. I’ve had an interest in the banks ever since I did a consulting gig at the FDIC helping them learn how to wind down large financial […]
Continue readingVolatile Market, Illiquid Warrants, No Problem
You only have to suffer through the pain of being trapped in a low liquidity investment once, and you’re scarred for life. That great position can be cut in half in very short order in today’s reignited volatility. So, having learned your lesson you find a stock to purchase with decent volume. But wait, there’s […]
Continue reading5 Warrants to Buy Now
Something I’ve learned over the years in the equity markets is to build on your investing strategies. In other words, just because you come across a new strategy, doesn’t mean you abandon everything else you’ve learned, and wear blinders while experimenting with the new strategy. There are a few schools of thought on Wall Street […]
Continue readingShorting Warrants…Cool, Don’t Do It!
Should you ever short warrants? The short answer (get it, the short answer) is NO. It’s simply a way to turn a safe trade, shorting common and being long warrants, into a nightmare. Let’s start with this. CAN you short warrants and make money? Yes, and here’s how. First, the warrant has to be […]
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