At Kennon Green Enterprises, we approach value investing using an opportunity cost approach. That means we don’t get hung up on the idea of owning stocks or bonds, real estate or gold. Instead, we look around at all available opportunities that fall within our “circle of competence” – the things we understand, are passionate about, …

Buying call options is the opposite of selling covered calls and is an extremely aggressive strategy.  You can generate big losses, but if you’re right, huge (and I mean huge) gains.  The only reason we are willing to do it with a very small percentage of our assets is because we have the liquidity, net …

The volatility in the markets has caused pricing for certain derivatives to shoot through the roof, allowing investors to earn huge returns by selling covered calls (also known as writing covered calls).  Here’s an example of a real transaction involving selling covered calls that one of our businesses recently contemplated. Right now, we could purchase …

This blog entry is meant as an explanation of writing put options or selling put options and not meant to convey any opinion as to the suitability or prudence of investing, trading, holding, buying, or selling shares or put options in Abercrombie & Fitch or any other firm.  It is purely for illustrative purposes as …