ARTICLES

The Impact of Dividends

Steady Options has received numerous inquires into how dividends impact options, option prices, and the owners or option contracts.  The impact of dividends should be understood by any option contract trader.  Fortunately, the rules for option contracts and dividends are clear and straightforward. Below we’ll discuss both what happens to option contract holders when dividends…

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Cash is (no longer) Trash

Lorintine Capital Cash Management Strategy According to www.bankrate.com, current national average interest rate on bank savings accounts is only 0.10%. Many banks have barely budgeted on increasing interest rates even as the risk-free rate of return on a US Treasury Bill is currently in excess of 2%. This spread is a substantial profit margin for…

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When can you Trust a Backtest?

There’s a joke in the financial industry that “nobody has ever seen a bad backtest”. There certainly are bad ones, but nobody ever markets them. They just get thrown in the trash. Even academics can fall prey to this. Although they may not be selling a strategy or investing concept to investors, they do have…

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