If You Are Thinking About Buying a Stock, Stop and Think About This First Modest Money2 Comments

I am a simple man, and I like Bank of America (BAC) this year.  We all know interest rates have been low for a long time and we all know they are going to rise.  It is only a matter of when.  We also know that banks do well when interest rates rise because they make more money on loans – which is their business.

I was a stock broker and trader for some of the largest online brokerages in the U.S. like TradeKing Inc., Zecco and others.  I always knew that people could be much better off by using just this one simple trick to get more cash and a lower cost basis on the stock they were going to buy anyways.

Lets say you want to buy 100 shares of BAC.  That is a $1600 investment roughly.  You like BAC at $16/share and you want to buy it now.


Instead of just buying BAC at $16, sell a little something called a “Put”.  Let me give you a real life example.  A put is an Option contract that gives the buyer the ability to sell 100 shares of BAC to you at $16/share if he chooses any time before April 20.


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By : Adam | 27 Apr 2015
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What a great idea! Having numerous employers fighting over you sounds like a very stress-free job search. Check out the video below for more info and then sign up here.

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By : Adam | 17 Apr 2015

Financial jargon was meant to be confusing. Isn’t that frustrating? Even more so, financial jargon was designed by banks to intimidate everyday consumers so they avoid reading critical (and often burdensome) terms and end up owing banks more money in interest on their credit cards …

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