The ancient Greeks are justly praised for inventing much of elementary mathematics. But it was left to moderns to create the tools that help options traders quantify risk and calculate prices. Chief among these tools are several quantities known fondly as The Greeks: delta, theta, gamma and vega.
While the underlying mathematics is heavy going, the […]
Entries Tagged as 'Financial Investing'
Delta, Theta, Gamma and Vega in trading options or stocks
October 21st, 2006 · No Comments
Tags: Financial Investing
How to read options values and prices?
September 1st, 2006 · No Comments
Unlike stocks, options have an expiration date. Unless a company goes bankrupt or buys back all its stock, the stock investor always has the choice to wait for a price correction. Sometimes that wait represents the triumph of hope over experience, but more on that elsewhere.
That expiration date makes calculating an option’s value more complicated, […]
Tags: Financial Investing
Hedging
July 1st, 2006 · No Comments
Options - Hedging, Trim Risks Not Bushes
Options are frequently used in hedging.
A hedge is an investment made to offset the risk incurred by entering another investment. Ironically, the basic idea is to bet against oneself, in a way.
Speculate that the market price will rise in the future and buy a call today. (A call is […]
Tags: Financial Investing
Options - Calls and Puts
June 13th, 2006 · 1 Comment
Many readers want to know more details on Options calls and puts. So here is more information on this.
Options are contracts on some underlying trading instrument - shares of stock, bonds, a commodity, a mortgage loan, etc. (The list is endless.)
But regardless of what the option is on, there are common features. One of the […]
Tags: Financial Investing
Options - Calls and Puts
May 11th, 2006 · 2 Comments
Many readers wanted me to go through the fundamentals of Options. Here you go :-
Options - Calls and Puts
A ‘call’ confers on the (option) contract holder the right to buy an asset at a stated price on or before a specified expiration date. A right to buy, not an obligation. The call owner always has […]
Tags: Financial Investing
Stock Splits and how you can profit from it!
March 30th, 2006 · 1 Comment
When a company’s stock prices goes to all time, it splits to make it easier for people to buy. So for example when Apple stock goes to around 90 (typically), the company announces a 2 for 1 stock split; basically you get 2 stocks for every stock you own. So if you own 100 stocks […]
Tags: Financial Investing
CD Investment Ideas
February 22nd, 2006 · 1 Comment
Many readers especially those who are retired are asking me some investing ideas with CDs; I have analyzed few offers and found one from www.everbank.com looks good. This CD they are offering is from Iceland and it gives APY of 8.24%. The minimum investment is $10,000. There are no monthly fees, FDIC insurance, online access […]
Tags: Financial Investing
Some more resources on Options
February 18th, 2006 · 1 Comment
Many readers have contacted me to learn more about options; I will be adding links where our readers can learn more about options and make more profit.
Here is a page from Fidelity where you can find valueable information.
http://personal.fidelity.com/products/stocksbonds/content/options.shtml
Good luck!
Tags: Financial Investing
Turbo charge your profits with Options
February 9th, 2006 · 5 Comments
I know many people who trade stocks. Most of the US house holds have stocks in various companies. Have you tried options?
Many people think Options are only for professional traders and the big boys. It is not so. Let me explain in simple terms what are the pros and cons of options.
Here is how the […]
Tags: Financial Investing
Investing in the Stock Market by Charles M. O’Melia
February 4th, 2006 · 3 Comments
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Investing in the Stock Market
by: Charles M. O’Melia
From the book ‘The Stockopoly Plan’ by the author Charles M. O’Melia
There are several factors an investor in the stock market should consider:
1. All stock purchases should be commission-free.
2. All stocks purchased should be from a company that has a history of raising their dividends […]
Tags: Financial Investing
Mutual Funds: What Investors Need to Know About Morningstar Mutual Fund Fiduciary Grades by Sam Subramanian
January 30th, 2006 · 1 Comment
Mutual Funds: What Investors Need to Know About Morningstar Mutual Fund Fiduciary Grades
by: Sam Subramanian
Morningstar now provides Fiduciary Grades on mutual funds. How does Morningstar determine these grades? How can mutual fund investors use these grades to better manage their portfolios?
Mutual fund investors use Morningstar Rating™ as a sign post of mutual fund performance. These […]
Tags: Financial Investing
5 Lessons the Rich Can Teach All Of Us.
November 17th, 2005 · No Comments
Alexander Kintis over at Beating Addiction was kind enough to point me to a very good article written by Liz Pulliam Weston a columnist for MSN. In the article she writes about 5 lessons we can all learn from millionaires and the wealthy. These lesson truly are powerful. I especially like number 4 because most […]
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