RABCPA PC Blog
There are only three reasons to use options.
The first is that they provide income. You can sell an option on your stocks; it is called a covered call. The buyer will pay for that right to buy your stock. If the stock hits a strike price they have the right to buy your stock, if it does not hit the strike price you keep your stock and their fee. Either way you win.
The second reason for options is protection. You can sell a “ put “on your stock at a specific price. This protects and locks in some of your gains.
The third one is hedging, you could buy an option on the S&P 500. If your individual stock portfolio goes down, you actually receive money based on the S&P 500 going down. This hedge would help protect you should the market crash.
But let’s face it most people use options for speculation, they buy options to get-rich-quick. Some people do make a reasonable amount of money with options. You can use leverage to buy a stock that went from $10 to $20 and make millions. Posted September 12, 2018 by Robert A Bonavito in Educational Videos
Currently the median length of marriage in the US is about 11 years. Divorce has always been a big topic in the US, even back in 1629 at the colony of Massachusetts of the Bay. The basis for divorce back then was adultery, desertion, bigamy and in many cases impotency. However, by 1776 divorce laws became less restrictive, but it must be pointed out that divorce was very uncommon in the 17th, 18th and 19th century. It was in the 20th century when divorce became more popular. Some states even became what are called “divorce mills: where you can get a divorce very easily. Posted August 29, 2018 by Robert A Bonavito in Educational Videos, Matrimonial & Divorce
When people talk about investing they indicate that it is best to put your money in the bank, and that stocks are risky. That will work if you have rich parents or a rich uncle who can leave you a lot of money. If you have a sugar daddy BAD, then you probably do not need to be in the stock market. Everyone else should be fully invested.
I say this because if you look at the long-term return of stocks vs. bonds and gold you would be shocked. Let’s say you invest $1 in gold, $1 in bonds and $1 in stocks in 1801. How much money do you think you would have in the bank today?
The $1 you put in gold right now would be worth about $22.
The $1 you put in bonds would be worth $17,000.
The $1 you put in stocks would be worth $9 million.
You and your advisor may want to put your money in stocks. Posted August 23, 2018 by Robert A Bonavito in Business Valuations, Educational Videos
