If you are doing regular covered call / share renting / buy write strategy then sooner or later you will meet the condition that the stock that being optioned is giving shareholder some dividend. And there are some interesting interaction or behavior that you need to realize during this period. Knowing this little detail will help you adjust your strategy to maximize your profit.

As investor, you will find out that dividend is one of income stream on your investing portfolio. The higher the dividend, the happier is the investor. But for trader, especially short term trader and call-option writer, there is more factor to be factored-in in order to maximize the profit or prevent lost. Why? That’s because of the typical behavior of the stock price during the “Ex-Dividend Date”.

Diversification is another concept that need to be really understood by all investor. By using diversification you are certainly reducing exposure to the risk of individual item. And this is a good thing to do. But on the other side of the coin, if you are using too much diversification, not only you induce additional transaction cost, but also you are limitting your profit that you could earn. Let’s found out exactly why and how it works

Has nothing to do with the world biggest miner BHP Billiton, BHP stands for “Buy, Hold and Pray” – it is the oldest and classic strategy that our grandfather or father or some of us still do when it comes to investing in share, but this time with a bit of twist. We set a protection against a downturn – 100% capital protected.

A stock trader can make profit basically by buying a company share at certain price and sell it at higher price. The problem is that no body can actually have the power to direct the price movement (go up or go down) except the market mechanism itself. So, what determine this ?

Has nothing to do with the world biggest miner BHP Billiton (ASX:BHP), BHP stands for “Buy, Hold and Pray” – it is the oldest and classic strategy that our grandfather or father or some of us still do when it comes to investing in share.

As the term reveals, it started with buying some share in [...]