Advice to the Advisors

preferred portfolio strategy preferred stocks rising interest rates Sheaff Brock Institutional Group

Preferreds Continue in a Starring Role

In the ever increasing search for income, preferred stocks continue to play an important role for companies and investors alike, with the Standard and Poor’s Preferred Index ETF (iShares: PFF) trading at an average share volume of 2.3 million/day as of May 23, 2017. By way of quick review, preferreds are hybrid securities, blending traits of both stocks and bonds. Like common stock, preferreds represent ownership in a company, but without voting privileges; like bonds, preferreds are issued at a [...]

Advice to the Advisors

Sheaff Brock Institutional Group | investment services put options

Selling Put Options: For Investors Who Want a Little Bit More

There are two main reasons, explain James Cordler and Michael Gross, writing in Futuresmag.com, for the popularity of option selling: investors’ ability to generate reliable income generally positive performance under varying market conditions However, the authors caution, there is no free lunch here, and option selling has its own set of risks. Two mistakes Cordler and Gross see investors make include: selling too many options relative to account size being too concentrated in a particular market sector Dave Gilreath, manager of [...]