Remember that a covered call requires being okay with selling the underlying stock if the contract is exercised. You should also be sure you are okay with keeping the stock after the contract expires. Alternatively, if the actual price of the underlying stock or ETF rises above the strike ...
What Is a Single-Stock ETF? Single-stock ETFs combine the individual stock-picking process with leverage. Michael E. Pyle, financial planner and managing partner at Challenge Everything Financial, explains how the leverage from these ETFs can impact your portfolio: "The leveraged position of single...
What is an ETF? Exchange-Traded Funds (ETFs) are investments that seek to combine the diversification of mutual funds with the trading flexibility of securities. Like mutual funds, ETFs invest in a basket (i.e. portfolio) of securities such as stocks, fixed income or commodities. But, unlike...
Wondering how an overdraft works? Find out what one is, how to set one up and how interest and fees work in this guide.
How a money transfer works in practice Here is a simple example using a card with a promotional offer giving you a 0% money transfer interest rate for 12 months. Before you complete a transfer, you’ll be told your interest rate (and whether you have a promotional rate) as well as your...
The VanEck Semiconductor ETF (SMH) has been a good example of what can happen if investors look beyond the expense ratio. The ETF has a 0.35% expense ratio, which is reasonable but higher than that of many other passively managed funds. However, the fund has delivered a 71.9% year-to-...
A long stock position works well with a long Put option to limit the maximum loss. What Is a Call Option? A Call option is a right to buy 100 shares at the strike price before expiration. Looking at the AAPL price now, if we long a Call option at $130 that expires next month, it...
Each day's maximum DTBP is determined by the prior night's market close. If you exceed your DTBP, aday trade margin callwill be issued for the deficiency. The trader will have, at most, five business days to make a deposit, journal or transfer of funds, journal or transfer of marginabl...
An ultra ETF is a class of exchange-traded fund (ETF) that employs leverage in an effort to amplify the return of a set benchmark. They use financial derivatives and debt to increase the impact of price movements, offering to double, triple, or more the long or short performance of a ...
and you may be required to immediately deposit additional funds if the securities in the account lose too much value—this is what is known as amargin call. If you can't meet a margin call, your broker