Blog Title: TheFinancialWhiz.Com

A blog devoted to investment strategies that should meet or beat the market with less risk. The blog uses investments such as stock options, ETFs, FOREX, and stocks to realize these goals.

Chinese Yuan Carry Trade Currency Basket ? Nine Months Later and 43% Greater

Back on March 20, 2007, TheFinancialWhiz.Com started an experiment of combining a basket of nine currencies versus the Chinese Yuan (see post). The goal of the basket was to generate positive interest payments from the long currency holdings, with a secondary goal of generating capital appreciation. The portfolio, as of Saturday, January 5, 2008, has read more..

Hedging Stock Investments Using Low-Risk Options Strategies - Stock Option Collar

Please note that this example is for educational purposes and uses a historical trade from April 2007 Another strategy utilized by investors is the Stock Collar. This strategy involves owning or purchasing 100 shares of a particular stock, buying a put option and selling a call option. An investor sells a call option to finance the read more..

Hedging Stock Investments Using Low-Risk Options Strategies - Protective Put

Please note that this example is for educational purposes and uses a historical trade from March 2007 A lesser-known strategy is the Protective Put strategy, which involves purchasing or holding a stock and buying a put option to protect against the downside. The strategy is the opposite of the Covered Call Strategy because the investor is read more..

Hedging Stock Investments Using Low-Risk Options Strategies - Cash-Secured Put Selling

Please note that this example is for educational purposes and uses a historical trade from March 2007 Another way to play the income aspect of the Covered Call is through a strategy known as Cash-Secured Put Selling, which involves selling a put option, keeping the premium, and?if the option is exercised by the buyer?purchasing the 100 read more..

Hedging Stock Investments Using Low-Risk Options Strategies - Covered Call

Please note that this example is for educational purposes and uses a historical trade from March 2007 The most popular options strategy among all investors today is Covered Call Writing. The basic idea of this strategy is to hold a stock with a near-term outlook that shows the stock will remain stagnant at its current read more..

Hedging Stock Investments Using Low-Risk Options Strategies - Introduction

One of the most exciting financial instruments available comes in the form of derivatives. The versatility of derivatives, allows for many different investment goals to be reached. Derivatives are growing in popularity and are quickly emerging as an essential financial investment tool. One of those derivatives is Futures, which are a financial contract obligating the read more..

Volatile Turkish Lira Position? Hedge it with the Hungarian Forint

Almost daily, I receive emails asking how a trader can profit from the Turkish Lira, many of whom are drawn to the high interest rate feature of the currency. It is easy to forget about the huge volatile moves that has plagued the currency since its re-release. To look for a safe hedge read more..

Mission Accomplished: TheFinancialWhiz Starts a Financial Career

In my post ?Follow The Financial Whiz: The Countdown Begins Going from College to Career,? I set a goal to obtain a job offer by my graduation date of December 16, 2007. I am proud to say that I have achieved that goal. I was offered positions with two very respectable firms, and both opportunities read more..

Chinese Yuan Carry Trade Basket - December 4, 2007

This is an update on the performance of the Chinese Yuan Carry Trade Basket. The experiment was started with a base of $100,000 on March 20, 2007. I have included the performance figures for both of the experiments that I have been running, although they are the same in composition, I have leveraged them differently. Since read more..

Chinese Yuan Carry Trade Basket Update - July 20, 2007