Bullish Outlook

ESP For Option Traders
May 31, 2016
Bullish Outlook

ESP For Option Traders

Richard Croft

A covered call strategy carries about 50% to 70% of the risk associated with a long equity position. We accept that thesis as a rule of thumb, but how does one square that position mathematically? The simple answer is to evaluate the downside protection accorded by the premium. We receive more money and, by extension, more...

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Gold Covered Straddles
May 09, 2016
Bullish Outlook

Gold Covered Straddles

Richard Croft

I talked about gold… reluctantly, back in February. I also read with interest comments from Patrick Ceresna who, also in February, penned a two-part thesis on why gold should move higher. And Patrick provided some strategies for investors to take advantage of his bull case which, I might add, have paid off handsomely. I also...

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