Inspired Investing with Covered Calls

There’s an overwhelming belief among the investment public that stock options and derivatives are risky and hard to understand.  In general terms, I agree.  Many times they are both of these, sometimes to the extreme.  But there is one facet of options trading that you’ll definitely want to know about, Covered Calls.  The proper execution of an actively managed, covered call strategy has the potential to limit risk while boosting your returns.

I’m struck by how much poor information regarding covered calls is on the internet, (more…)

“Know When to Fold ‘Em”

Imagine a football game in which your team is down by a touchdown at halftime.  Does that mean the game is over and you lose?  Or maybe your favorite baseball team is down by a run going into the 7th inning stretch.  Is that it?  Is the game over?  Of course not.  At home, we always joke that we don’t even need to turn on the TV until the very end of the game.  Remember the Yogi Berra quote, “It ain’t over, til’ it’s over.”  The same thing is true when investing in the stock market. (more…)

Collared Income Performance Evaluation

The most obvious method to evaluate investment progress is to track your account value over time.  If the account value is rising, then you’re making money.  If the account value is heading lower, then you’re losing money.  This seems pretty straight forward, but it’s not always that simple.  Sometimes it depends on what points in time you choose to track.  Does it make sense to track daily, weekly, or maybe monthly?  The answer depends on the strategy you’re using to invest. 

More complex strategies require additional thought to evaluate.  This is the case for our Collared Income strategy. (more…)

Protective Puts

Do you know how to insure your investment portfolio against losses? We do.

Would you ever buy a house without also buying homeowner’s insurance? Of course not. Many won’t even buy a new smartphone without also buying phone insurance. Yet, people invest their life savings with no protection of any kind. Can you afford to ride out another 2008? Do you want to ride out another 2008? (more…)

Collared Income

Most investors wish to earn above average investment returns.

Most investors take on way too much risk.

Most investors face the very real possibility of catastrophic losses.

The Solution:

Inspire Capital’s “Collared Income” strategy. We have designed an investment strategy to greatly limit risk in any market environment while maintaining the potential for consistent, above average returns. We actively manage this strategy for select clients. (more…)

Concentrated Equity

An employee stock option program can be a great thing,

if your highly concentrated stock portfolio does well.

If not… You face the very real possibility of catastrophic losses.

The Solution:

Inspire Capital’s “Collar” strategy. We have designed a tax advantaged, investment strategy to greatly limit the risk inherent in a concentrated equity portfolio. We actively manage this strategy for select clients. (more…)

Hedge Fund “Sell Out”

Historically, the month of September tends to be the worst month of the year for investing. Here’s why:

Hedge Funds are largely compensated based upon their investment returns. If a hedge fund is having a good year and showing a nice profit. The hedge fund manager may decide to lock in their gains before year end. This way they know that they will receive a nice bonus check at year end. Basically, they just sell out everything and sit out the rest of the year. (more…)