From Theory to Practice

A Better Long

| Nov 5, 2015
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    From Theory to Practice

    A Better Long

    Nov 5, 2015

    This segment is intended to spur the viewer to think about some commonly held notions in a new way and to see that using options can radically decrease risk as opposed to increasing it. Dr. Jim is back with more rapid fire insights.

    Conventional wisdom tells us that we simply buy stocks and count on the market’s historical increase of about 8% to work for us over time. We’ve been conditioned to “buy and hope”. You’ll learn here that the conventional wisdom is wrong.

    Dr. Schultz first takes us through the use of a covered call. He explains how this can be part of a long term investment strategy. How to pick a strike is explained along with the problems in the trade and the benefits.

    Next discussed is getting long via short puts. The different scenarios which can occur are explained. The advantages and disadvantages are examined. The idea that writing a put is somehow risky as compared to buying a stock is shown to be nonsense.

    Finally, the viewer is advised that even if his view of the economy is strong and the statistics favor the stock market increasing over time that there is a better way to get long than simply buying stock. Use options and you will improve your cost basis.

    Watch this segment of “From Theory to Practice” with Dr. Jim Schultz to learn a better way to get long the markets by reducing cost basis through a covered call and an out-of-the-money (OTM) put.

    This video and its content are provided solely by tastylive, Inc. (“tastylive”) and are for informational and educational purposes only. tastylive was previously known as tastytrade, Inc. (“tastytrade”). This video and its content were created prior to the legal name change of tastylive. As a result, this video may reference tastytrade, its prior legal name.

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