Trading

Market Outlook: A Trader’s Guide

Different ways to develop an opinion on the market In the world of Wall Street, there is no shortage of colorful language used to describe one’s outlook on the markets. When using the key terms to describe your market sentiment (bullish, bearish, neutral or volatile), Ally Invest is speaking from the perspective of the U.S. […]

Mutual Funds

Selecting Mutual Funds

Before you pony up cash for an investment, first dedicate time for doing some homework. Outlined below are several key questions to consider before investing in a particular mutual fund. You can find these answers in a fund’s prospectus.   Check the Prospectus Before investing in any mutual fund, carefully consider information contained in the […]

Options

Selling Cash-Secured Puts for Income

As an option trading strategy, selling naked or short puts is highly risky and only recommended for experienced investors. There are differences between selling a cash-secured puts and selling a naked put. In either case, Ally Invest encourages you to stay mindful of the risks. What is a naked put? If you short a put, […]

Bonds

Buying Treasury Bonds

Treasury bonds — also known as Treasurys or T-Bonds is the umbrella term for different types of bonds issued by the U.S. Treasury. Treasurys come in three main types based on the time frame of the loan: T-Bills — the shortest-term variety maturing in one year or less T-Notes — mid-range loans with maturities of […]

Stocks

Technical Analysis Explained

What is technical analysis? Technical analysis is the practice of gauging a stock’s future price fluctuations by analyzing past activity. This method involves looking for specific chart patterns and examining other historical data related to price and volume. To give you some perspective, let’s contrast this with fundamental analysis. As the name suggests, this approach […]

Options

Fig Leaf Strategy

The fig leaf strategy is also known as a leveraged covered call. Here’s how it works: buying a Long-term Equity AnticiPation Securities (LEAPS) call gives you the right to buy the stock at strike A. Selling the call at strike B obligates you to sell stock at that strike price if you’re assigned. This strategy […]

Trading

Leveraged and Inverse ETFs

Exchange-traded funds (ETFs) have gotten increasingly popular since they were introduced in 1993. Their value is based on a portfolio of investments, often referred to as a basket. In general, the basket consists of different stocks, but may also contain hard commodities, derivatives or other investments. ETFs trade throughout the day just like a stock […]

Bonds

Buying Municipal Bonds

The Strategy Municipal bonds, also known as munis, are issued by states, cities, counties and other government entities below the federal level in order to raise money for public improvements like highways, bridges, schools, hospitals, sewer systems, water treatment plants and other such projects. From a simplistic view, municipal bonds as a whole are investments […]

Options

Short Put Spread

A short put or short vertical spread obligates you to buy the stock at strike price B if the option is assigned but gives you the right to sell stock at strike price A. A short put spread is an alternative to the short put . In addition to selling a put with strike B, […]

Bonds

An Introduction to Bond Investments

Types of bonds There are many different types of bonds available; here’s a brief overview of the more commonly traded ones in the U.S. market. These include debt securities issued by the U.S. Treasury, municipal bonds, corporate bonds and other government bonds.   U.S. Treasury debt securities The U.S. Treasury issues debt securities (bonds) in […]