Options

Synthetic Long Stock

Also known as a long combination strategy, buying the call gives you the right to buy the stock at strike price A. Selling the put obligates you to buy the stock at strike price A if the option is assigned. This strategy is referred to as synthetic long stock because the risk/reward profile is nearly […]

Options

Long Call Strategies

A long call gives you the right to buy the underlying stock at strike price A. Calls may be used as an alternative to buying stock outright. You can profit if the stock rises, without taking on all of the downside risk that would result from owning the stock. It is also possible to gain […]

Options

What is Implied Volatility?

Implied volatility (IV) is one of the most important concepts for options traders to understand for two reasons. First, it shows how volatile the market might be in the future. Second, implied volatility can help you calculate probability. This is a critical component of options trading which may be helpful when trying to determine the […]

Options

Collar Strategies

You can think of a collar as simultaneously running a protective put and a covered call. Some investors think this is a sexy trade because the covered call helps to pay for the protective put. So you've limited the downside on the stock for less than it would cost to buy a put alone, but […]

Stocks

Long Common Stock on Margin

The Strategy This strategy is similar to long common stock , but on steroids. That’s because when buying stock on margin you normally put up only half of the money to purchase the stock and borrow the other half from your broker. Although the benefit of trading on margin is a boost to your available […]

Options

Covered Call Strategies

Some investors will run this strategy after they’ve already seen nice gains on the stock. Often, they will sell out-of-the-money calls, so if the stock price goes up, they’re willing to part with the stock and take the profit. Covered calls can also be used to achieve income on the stock above and beyond any […]

Mutual Funds

Investing in Growth Mutual Funds

Growth mutual funds, as the name implies, invest in growth stocks. A growth stock is typically a younger, burgeoning company with earnings or revenue that’s growing faster than the average firm. Instead of paying out dividends to investors, growth firms usually choose to reinvest their earnings to support rapidly expanding operations or develop new products […]

Stocks

Stock Basics: An Investor’s Guide

Everybody knows the old maxim buy low, sell high, and we all hear rumors around the water cooler about stocks that are poised to take off. Some people think that's all you need to know to make a killing in the stock market. Those people are wrong. Before you begin to invest in stocks or […]

Options

Bullish and Bearish Option Trading Strategies

If you’re interested in trading options, you’ll find that the markets can be responsive and dynamic. Trading with Ally Invest provides insights and tools that can help you find appropriate option trades for just about any market outlook or environment. These trading environments can be categorized as bearish, bullish, neutral, or volatile. Each has its […]

Trading

Tax Implications of Trading

Manage your trading taxes more efficiently If you dread unraveling the tax implications of your trading activities each year, it's time to take hold of these issues. With a few basics under your belt, you can partner with your tax preparer to manage your trading taxes more proactively, resulting in less aggravation and, hopefully, a […]

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