Analyst Articles

A call is an option contract that gives the owner the right, but not the obligation, to buy 100 shares of the underlying stock at a specified price (which is known as the strike price of the call) at any time before a specific time (the expiration date of the call). Read More

A call is an option contract that gives the owner the right, but not the obligation, to buy 100 shares of the underlying stock at a specified price (which is known as the strike price of the call) at any time before a specific time (the expiration date of the call). Bullish investors would use calls because the value of the call should increase if the price of the underlying stock goes up. The potential profits for an investor owning a call are unlimited, because the underlying stock can go up to any price. The maximum possible risk on a call is limited to the total price paid for the option contract. Changes in the price of the underlying stock will lead to a change in the value of the call, as will changes in the volatility of the underlying stock. If… Read More

After falling more than 38% from its high, many investors are now wondering whether Apple (NASDAQ: AAPL) is a buy below $500. From a trading perspective, the answer is “no,” and the only reason to think about buying Apple after such a big drop is based on fundamentals. #-ad_banner-#Fundamental… Read More

Years ago, my dad and I were driving across his farm in his vintage Land Rover, which looks almost exactly like the one John Wayne used in the movie Hatari! The heavy-duty off-road tires were having a hard slog through the mud. Dad had cut across a recently plowed field… Read More

While the S&P 500 and Dow have rallied to five-year highs, the technology sector has lagged, and is currently sitting about 4% below the fall peak. The PowerShares QQQ Trust (Nasdaq: QQQ), an exchange-traded fund (ETF) that tracks the Nasdaq 100, could provide… Read More

While the S&P 500 and Dow have rallied to five-year highs, the technology sector has lagged, and is currently sitting about 4% below the fall peak. The PowerShares QQQ Trust (Nasdaq: QQQ), an exchange-traded fund (ETF) that tracks the Nasdaq 100, could provide a diversified way for investors to profit while this out-of-favor sector plays catch up. One reason I like this fund is the exposure it offers to Apple (Nasdaq: AAPL), which accounts for a whopping 15% of the… Read More

While the S&P 500 and Dow have rallied to five-year highs, the technology sector has lagged, and is currently sitting about 4% below the fall peak. The PowerShares QQQ Trust (Nasdaq: QQQ), an exchange-traded fund (ETF) that tracks the Nasdaq 100, could provide a diversified way for investors to profit while this out-of-favor sector plays catch up. One reason I like this fund is the exposure it offers to Apple (Nasdaq: AAPL), which accounts for a whopping 15% of the index weight. AAPL is more than 35% off its September highs, but when the stock stabilizes and snaps back, QQQ will rise with it.  QQQ’s recent month-long range between $68 and $66 targets $71 on a breakout, which would be a new 52-week high for the ETF. A full “V” recovery rally projects a much higher target of $78. The $64 level is an important year-long pivot point,… Read More

My wife used to make fun of my fondness for fantasy sports — until the day that changed her mind. Before I had a kid, I played in every type of league you can imagine — even a NASCAR league, despite the fact that I am neither a fan of… Read More