Volatility as defined is rapid change such as volatile chemicals that are explosive. When it comes to the stock market, volatility is in fact pretty much the same. Various methods and measures are used to track the volatility of stocks and their likelihood of moving up or down in price instead of looking at the […]
For Beginners Definition: What is volatility?
July 10th, 2008 · 1 Comment
Tags: Random
The Credit Crisis – New Sector – Same Old Thing
June 26th, 2008 · 6 Comments
We are seeing several cuts in the financial sector all across the world such as what was reported on June 23 by Reuters that Citigroup Inc would be cutting thousands of trading and investment banking jobs. Plans reported previously stated that Citigroup would cut about 10% of its investment division; however, that percentage has now […]
Tags: The Markets
Options Tip #431 - Split Strike Butterfly with Calls
June 3rd, 2008 · No Comments
You can think of this options play as embedding a short call spread inside a long butterfly spread with calls. Essentially, you’re selling the short call spread to help pay for the butterfly. Because establishing those spreads separately would entail both buying and selling a call with Strike C, they cancel each other out and […]
Tags: Options 101
Fixed Return Options: Key Concepts of the Horse Race
May 14th, 2008 · No Comments
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. […]
Tags: Fixed Return Options
Getting Started in Options
November 29th, 2007 · 1 Comment
What is an “Option”?
An option is a contract to buy or sell a specific financial product officially known as the option’s underlying instrument or underlying interest.
It establishes a specific price, called the strike price, at which the contract may be exercised, or acted on.
It has an expiration date. When an option expires, it no longer […]
Tags: Options 101