{"id":111407,"date":"2017-08-21T10:29:20","date_gmt":"2017-08-21T14:29:20","guid":{"rendered":"http:\/\/countingpips.com\/?p=111407"},"modified":"2017-08-21T06:30:10","modified_gmt":"2017-08-21T10:30:10","slug":"terrified-of-bitcoin-do-this","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/08\/terrified-of-bitcoin-do-this\/","title":{"rendered":"Terrified of Bitcoin? Do This\u2026"},"content":{"rendered":"<div id=\"inves-406528302\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">August 21, 2017<\/div><hr style=\"border: none; border-bottom: 3px solid black;\">\r\n<\/div><\/div><p>By <a href=\"http:\/\/WallStreetDaily.com\/\"><u>WallStreetDaily.com<\/u><\/a> <img loading=\"lazy\" decoding=\"async\" class=\"attachment-home-th size-home-th wp-post-image\" style=\"display: block; margin-bottom: 5px; clear: both;\" src=\"https:\/\/s3.amazonaws.com\/wallstreetdailywebsite\/wp-content\/uploads\/2017\/08\/0817_coveredcalls_feature.jpg\" sizes=\"auto, (max-width: 580px) 100vw, 580px\" srcset=\"https:\/\/s3.amazonaws.com\/wallstreetdailywebsite\/wp-content\/uploads\/2017\/08\/0817_coveredcalls_feature.jpg 580w, https:\/\/s3.amazonaws.com\/wallstreetdailywebsite\/wp-content\/uploads\/2017\/08\/0817_coveredcalls_feature-300x155.jpg 300w\" alt=\"Terrified of Bitcoin? Do This\u2026\" width=\"580\" height=\"300\" \/><\/p>\n<ul>\n<li>Some people fear cryptocurrencies.<\/li>\n<li>Fear doesn\u2019t play well in finance.<\/li>\n<li>The back door into cryptos.<\/li>\n<\/ul>\n<hr \/>\n<p><img decoding=\"async\" style=\"float: left; max-width: 85px;\" src=\"https:\/\/duip7hn7nchpo.cloudfront.net\/editor-circle-louis-basenese.jpg\" alt=\"Louis Basenese\" \/>For reasons beyond all sane logic and wisdom\u2026<\/p>\n<p>Some of you won\u2019t dive into cryptocurrencies.<\/p>\n<p>It\u2019s hard to figure, honestly\u2026<\/p>\n<p>Despite the fact that virtually every cryptocurrency is enjoying triple-digit advances \u2014 it happens daily \u2014 a handful of readers remain on the sidelines. (Don\u2019t believe me? <strong><u><a href=\"https:\/\/pro.agorafinancial.com\/m\/735426\" target=\"_blank\" rel=\"noopener\">Click here<\/a><\/u><\/strong>.)<\/p>\n<p>If you\u2019re such a reader, please take notice\u2026<\/p><div id=\"inves-2415225742\" class=\"inves-in-content inves-entity-placement\"><hr style=\"border: 1px solid #ddd;\">\r\n<div id=\"inpost_ads_header\">\r\n<p style=\"font-size:10px; float:left; color:#666;\">Free Reports:<\/p><\/div>\r\n<div id=\"inpost_ads\"> \r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/1ApBOV\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2018\/06\/graph_techs_PD.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t     <a href=\"https:\/\/goo.gl\/1ApBOV\"><b><u>Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p><br><br>\r\n<br>\r\n<br>\r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/f3RrHX\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2019\/01\/cot_pie_80.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t    <a href=\"https:\/\/goo.gl\/f3RrHX\"><b><u>Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p><br><br>\r\n<\/div>\r\n<hr style=\"border: 1px solid #ddd;\">\r\n<br><\/div>\n<p>When fear drives investing decisions, it seldom ends well.<\/p>\n<p>Passive decision-making can be equally as bad.<\/p>\n<p>Nonetheless, I\u2019ll try to throw these folks a lifeline.<\/p>\n<p>NVIDIA (NVDA) makes high-performance graphic processing units (GPU) \u2014 ones that crypto-nerds use to \u201cmine\u201d coins.<\/p>\n<p>In fact, NVIDIA\u2019s line of cards was specifically manufactured for digital mining efforts.<\/p>\n<p>As you can imagine, shares are going vertical.<\/p>\n<p>Since the stock will likely remain in an aggressive ascent all year, I\u2019ve got an idea\u2026<\/p>\n<p>Sell a covered call on shares of NVIDIA.<\/p>\n<p>Covered calls are among the very safest ways one could possibly ever invest in cryptos! (The far better move, however, is buying <strong><u><a href=\"https:\/\/pro.agorafinancial.com\/m\/735426\" target=\"_blank\" rel=\"noopener\">the hottest ICO on Earth<\/a><\/u><\/strong>.)<\/p>\n<p>I asked my senior analyst, Martin Hutchinson, to reveal the genius behind covered calls.<a name=\"video\"><\/a><\/p>\n<p>Hutch\u2019s full report is below.<\/p>\n<p>Ahead of the tape,<\/p>\n<p>Louis Basenese<br \/>\nChief Investment Strategist, <em>Wall Street Daily<\/em><\/p>\n<hr \/>\n<p><script src=\"https:\/\/fast.wistia.com\/assets\/external\/E-v1.js\" async><\/script><\/p>\n<div class=\"wistia_responsive_padding\" style=\"padding: 56.88% 0 0 0; position: relative;\">\n<div class=\"wistia_responsive_wrapper\" style=\"height: 100%; left: 0; position: absolute; top: 0; width: 100%;\">\n<div class=\"wistia_embed wistia_async_qyxgwrf8a2 videoFoam=true\" style=\"height: 100%; width: 100%;\"><\/div>\n<\/div>\n<\/div>\n<hr \/>\n<p><strong>Martin Hutchinson:<\/strong> Good morning, this is Martin Hutchinson, senior analyst.<\/p>\n<p>I\u2019m building a library with you of all the concepts that you might need when investing. The core concepts that help you become a better investor.<\/p>\n<p>Today, I\u2019m going to talk about covered calls.<\/p>\n<p>In a covered call strategy, you write call options against stocks you hold as long-term investments.<\/p>\n<p>So that means that you give somebody else the right to buy the shares of stock from you, generally at a modest premium from the current share price.<\/p>\n<p>Now, why would you do that? Well, writing covered calls is a good way to add income to a portfolio of blue chips.<\/p>\n<p>You don\u2019t want to do it on growth stocks, because they may zoom up further than the strike price of the call option, and then you lose the growth.<\/p>\n<p>But with stable income stocks, it makes a lot of sense because the call option premiums add to the dividend. If you get, say, four call option premiums a year, you can easily make a return of 10% or so.<\/p>\n<p>Of course, this does have some downsides.<\/p>\n<p>Generally you\u2019ll find that your portfolio weeds itself out so that you lose the real winners. That\u2019s another good reason for doing it mostly on income stocks.<\/p>\n<p>If the market overall is very strong, you\u2019ll lose out because your call options will all get called and you\u2019ll end up with nothing in your portfolio in a strong market. And same is true if you\u2019ve got a stock with real growth and upside.<\/p>\n<p>The other problem is that a call option locks you into the stock.<\/p>\n<p>Once you\u2019ve sold a call option on it, it\u2019s dangerous to sell the stock if you suddenly discover some bad news. You\u2019ve then got difficulty selling. You\u2019ve really got to buy the call option back as well. So if the stock looks riskier or the market turns downward, you can get trapped in it.<\/p>\n<p>But on the other hand, you can get dividends and the call option premiums, which is ideal, and it gives you an additional return on your portfolio if the market is flat or moderately declining.<\/p>\n<p>You can also combine a covered call selling strategy with a put selling strategy. The way you do that is to first sell puts on stocks you want to own, generally at prices below the current level so it would be attractive to buy them at those prices.<\/p>\n<p>And then if you get the stocks put to you, you sell calls on them, and then revert to puts if the calls are exercised, so you can flip between calls and puts.<\/p>\n<p>This gives you lots and lots of income, but over time it will tend to erode your capital, because the stocks will be put to you, and then may go down further, and others will be called from you and then you won\u2019t get the benefit of the increase.<\/p>\n<p>So the bottom line is if you think the market is flat and you\u2019re income-oriented, selling covered calls is a good strategy, but you want to be careful, because over time it will erode capital somewhat, as you\u2019ll tend to keep to losers and lose the winners.<\/p>\n<p>This is Martin Hutchinson, signing off.<\/p>\n<p>Smart investing,<\/p>\n<p>Martin Hutchinson<br \/>\nSenior Analyst, <i>Wall Street Daily<\/i><\/p>\n<p>The post <a href=\"https:\/\/www.wallstreetdaily.com\/2017\/08\/21\/terrified-of-bitcoin-do-this\/\" rel=\"nofollow\">Terrified of Bitcoin? Do This\u2026<\/a> appeared first on <a href=\"https:\/\/www.wallstreetdaily.com\" rel=\"nofollow\">Wall Street Daily<\/a>.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By WallStreetDaily.com Some people fear cryptocurrencies. Fear doesn\u2019t play well in finance. The back door into cryptos. For reasons beyond all sane logic and wisdom\u2026 Some of you won\u2019t dive into cryptocurrencies. It\u2019s hard to figure, honestly\u2026 Despite the fact that virtually every cryptocurrency is enjoying triple-digit advances \u2014 it happens daily \u2014 a handful [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-111407","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/111407","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=111407"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/111407\/revisions"}],"predecessor-version":[{"id":111419,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/111407\/revisions\/111419"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=111407"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=111407"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=111407"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}