Tactics


You guys already know about StockCharts.com, but one feature I didn’t know about was the ability to chart two stocks against each other. Another way of thinking about it is to see the price of X in terms of Y — i.e., the performance of the Dow priced in Gold.

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One of my friends made an offhand comment about how options are dangerous and should be avoided. I make a case for a contrary opinion — options are a sophisticated tool that can be very useful if you understand and manage the risks properly.

Let’s look at a few specific uses of options that we might find useful. (more…)

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