Buying vs Selling Stock Options

In this video we go over why we sell options vs buying options.
The Culmination: A Risk Free Method to Consistently Outperform the S&P 500 is a pamphlet written by myself and a life long friend. You can buy the pamphlet at the link below.
www.amazon.com/Culmination-Ri...
#investing #investment #bonds #tbills #investors #newinvestors #warrenbuffet #stocks #stockmarket #investingforbeginners #investing101 #investingeducation #investingstrategies #spy #qqq #spystock #qqqstock #theculmination #ai #aiinvesting #hsy #puts #calls #coveredcalls #putoptions #calloption #calloptions #putoption #rollout #rollup
Investing and not speculating, buying small parts of companies and not stocks
I am a value investor that has been investing for 30 years. I look for low risk high reward companies that tI will hold for a long time. I am a Master Degree in Management and Finance where I learned a lot of accounting. I use company's income statement, cash flow, balance sheet before I invest in companies. Like companies with good cash flow with low debt and a lot of cash. I also look for companies that have high return on capital which means the percent that they receive off every dollar spent. I first look for companies that have a strong moat and I think will be in business for the next 50 years. Then I make sure I am getting it at a fair price where I will use many things like price to earnings, price to cash, and also try to understand their discount to future cash flow. I use a Morningstar Equity Analyst Report and CFRA Stock Report as quick research on companies that I may be interest in.
We also talk about economics as a whole. We study the Wealth of Nations for many uses and if this book is something you can understand it will make you a better investor. As accounting teaches you how the numbers work for a company, Wealth of Nations teaches you how an free market economy works from a mindset.
This is Adam Smith. Adam Smith was a Scottish philosopher and author who is probably best known for writing a book titled “An Inquiry Into the Nature and Causes of … The Wealth of Nations!” This book effectively marked the beginning of economics as an academic discipline as Adam Smith, (now heralded as the father of economics) laid the foundation for economic rules and principles that guide decision making the world over.
Reports I read
Morningstar | Empowering Investor Success
CFRA | Independent Fundamental & Forensic Investment Research (cfraresearch.com)
Books I use
Intelligent Investor by Ben Graham
www.cfraresearch.com/...
Wealth of Nations by Adam Smith
Amazon.com : wealth of nations adam smith hardcover
Disclosure -- All opinions expressed by Damon Draught an DNJ Management LLC on this show are solely Mr. Draught's opinions. You should not treat any opinion expressed by Mr. Draught as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his opinion. Mr. Draught’s statements and opinions are subject to change without notice. Past performance is not indicative of future results. Mr. Draught does not guarantee any specific outcome or profit. You should be aware of the real risk of loss in following any strategy or investment discussed on this post. Strategies or investments discussed may fluctuate in price or value. Investors may get back less than invested. Investments or strategies mentioned on this post may not be suitable for you. This material does not take into account your particular investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. You must make an independent decision regarding investments or strategies mentioned on this post. Before acting on information on this show, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

Пікірлер: 4

  • @DeanLaw2020
    @DeanLaw202026 күн бұрын

    How would you handle a situation like EL which was considered a bargain at $225 and now sells for $105?

  • @EMFS5

    @EMFS5

    26 күн бұрын

    @@DeanLaw2020 I would keep rolling down until I can't no more then I would have to buy the stock. If there was value at that point I would hold it because I would have to believe I have a undervalued holding.

  • @DeanLaw2020
    @DeanLaw202026 күн бұрын

    Wouldn’t an option buyer also have to have the stock exceed the cost/premium before they start making $?

  • @EMFS5

    @EMFS5

    26 күн бұрын

    @@DeanLaw2020 Yes they would. In the nke example if they paid a dollar they would have to have the stock go above 79 before they make money.

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