Insights category
Wealth and Portfolio Insights, page 3
Small fictional portfolios that test an options position against cash reserves, retirement accounts, tax records, concentration and hedge size.
69 articles · Updated
Articles 49 to 69 of 69, newest first
Worked examples use fictional figures.
- A Covered Call Can Sell the Shares You Earmarked for a GiftA fictional share-gift plan shows why a covered call can change an intended in-kind transfer into cash before the planned gift date.9 min read
- A Risk-Tolerance Score Cannot Size a Short PutA fictional account comparison shows why time horizon, reliance on funds and an assigned stock position matter alongside a stated appetite for volatility.6 min read
- A $1 Million Net Worth Can Still Miss a $10,000 Put AssignmentA fictional balance sheet shows why net worth, liquid cash and cash-secured-put collateral answer different portfolio questions.6 min read
- A December Put Premium Can Become a January Tax EventA fictional U.S. short put shows why closing, expiration and assignment can produce different federal tax records.7 min read
- Buying Power Is Not a Portfolio LimitA fictional $10,000 account shows why broker buying power, margin requirements and a portfolio loss limit are different measurements.7 min read
- One Protective Put Does Not Fully Hedge a 1,000-Share PositionA $100,000 hypothetical position shows why contract count, share coverage and total premium must be calculated together before calling a stock position hedged.9 min read
- Your Index Fund May Already Own the Stock Behind the PutA $100,000 hypothetical portfolio shows how a cash-secured put can rebuild the single-stock concentration an ETF was meant to reduce.9 min read
- A 70% Probability of Profit Does Not Make a 50% Portfolio Bet SmallA one-versus-ten-contract cash-secured-put model shows why a probability-of-profit estimate cannot set a portfolio risk limit.8 min read
- A Cash-Secured Put Is Also a Decision to Hold CashA $10,000 hypothetical comparison shows how a cash-secured put can improve an assigned entry price while leaving an intended share allocation in cash during a rally.9 min read
- A US-Dollar Put Premium Adds a Currency Position to an Australian PortfolioA transparent AUD/USD model shows how a US-dollar cash-secured put can add currency movement to the share-price risk an Australian investor already accepts.7 min read
- A Cash-Secured Put Can Turn a House Deposit Into 1,000 SharesA $100,000 12-month model shows how cash-secured-put assignment can turn house-deposit savings into shares when the purchase date is near.7 min read
- A $2,000 Covered-Call Premium and a $2,000 Bond Coupon Do Different JobsA $100,000 six-month model shows why a covered-call premium and a bond coupon can deliver the same cash amount while performing different portfolio jobs.8 min read
- The $200 Covered-Call Premium Can Become Part of a $6,700 Gross Capital GainA 100-share example shows why Australian investors should check adjusted cost base, assignment proceeds, tax timing and surrendered upside before writing a covered call.10 min read
- A 5.2% Rental Yield and a 2% Put Premium Are Not Comparable ReturnsA $100,000 comparison shows how debt, property costs, assignment and time horizon can overturn a headline rental-yield or options-income ranking.10 min read
- Four Covered Calls Do Not Diversify a $40,000 Employer-Stock PositionA $100,000 example shows why covered-call premium leaves employer-stock concentration in place until assignment and can cap a strong rally.9 min read
- A 10% Covered-Call ETF Distribution Can Accompany a 2.5% LossA $20,000 example shows why covered-call ETF investors must compare cash distributions with NAV, total return, upside caps and fees.9 min read
- Calculate the Rebalancing Gap Before Selling the PutA $100,000 60/40 example shows when put assignment can restore an equity target and when a direct rebalance is cleaner.8 min read
- Four Small Put Positions Can Become One Large Sector BetA $100,000 example shows how several modest cash-secured puts can create a concentrated sector position when assignment arrives together.10 min read
- Options Premium Must Clear the Debt Hurdle FirstA $20,000 example shows how debt interest changes the capital-allocation threshold for cash-secured puts before assignment and tax.11 min read
- Emergency Cash Should Not Double as Put CollateralA worked example shows why emergency savings and cash-secured-put collateral need separate jobs before assignment risk enters the account.10 min read
- A Retirement-Income Test for Options PremiumA covered-call example shows how to judge options premium beside total return, assignment, spending needs and tax treatment.10 min read
Size the position against the cash behind it
Weigh capital required, breakeven and assignment risk against your own account before you commit cash.