Trade in Groups

I was reading the Sunday paper this weekend and saw an interesting article on a group of Florida land-owners who are actually getting paid to produce trees.
In this case, the trees won’t be used for paper or for new homes, rather they are being raised for air.
Specifically, the trees are ‘leased’ by large carbon producers […]

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Gas is up around $4 per gallon and the U.S. public is feeling the pain. With crude oil hitting $130 per barrel today, oil execs were called before a Senate Judiciary panel today.
Fearing that soaring prices could cause the economy to slip into a recession, the Senate is looking to the big oil companies for […]

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May 20, 2009
This is what the headline will read (1 year out)….
The question is; will it matter?
One plus one does not necessarily equal three in this equation.
Google is so woven into the very fabric of our society, and the literal dependency we have on them is hard to value in terms of dollars or monthly […]

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Another index to understand.
Luckily, this one is easier to understand than it sounds.
Fixed Return Options (FROs) were recently launched on AMEX. FROs are defined here, but there is one critical point to understand. Traditional options (puts or calls) rely on the underlying stock’s price when the market closes on the expiration date.
The settlement index for […]

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Fixed Return Options are “binary” otions with a per-contract fixed return amount of $100.00. Fixed Return Options are offered in the following two forms:

Finish High FRO
Finish Low FRO

A Finish High FRO is similar to a standard list call option in that an investor purchasing a Finish High FRO is bullish on the underlying security. […]

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Fixed Return Options (FROs) are a new type of exotic options, however don’t let ‘exotic’ scare you - it doesn’t mean FROs are complicated. In fact they’re really simple, they are just a bit different from standard put and call options.
FROs are binary options, meaning there are only 2 possible outcomes. They offer a fixed […]

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Option trading is more complicated than trading stock. When you buy an option, you are purchasing the right to buy or sell as stock at a certain price. You are not actually purchasing the stock. With options, it is possible to make money if the stock goes up OR if it goes down.
Option contracts usually […]

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I am hoping to get my feet wet here with Fixed Return Options:

Anyone else trying them? TradeKing has a good whitepaper on them…

Sphere: Related Content

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I recently heard about a new product being offered on AMEX called the “FRO” or Fixed Return Options. Basically, these are binary options, or in other words there are 2 options at expiration. They offer a fixed return of $100 per contract. If you are in the money at expiration, you get $100. If you […]

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