How hedge funds make promises that are almost impossible to keep

No experienced, successful investor will be surprised at the suspicions that cling to hedge funds in the wake of repeated financial crises. When that much money floods into an investment area that fast, unpleasant financial events are bound to happen.

The huge investment attracts unscrupulous characters,… Read More

I read, with interest, your position on covered calls in the archives on your website. I do have one very naive question, however. (I’m green at this, so that’s why I subscribed to your very sound advice column!) In any case, if one is holding Research in Motion stock at this time, would a covered call be a bad move—or should I just sell?

Covered call writing is where you sell a call option against a stock you currently own. You receive cash for selling the call, but you’re obligated to sell the stock at a fixed price (the strike price) if the holder of the call exercises the… Read More