Construction of a vertical spread occurs with the purchase and sale of a call (put) in the same stock and in the same month. The only difference between the two options is the strike price. For example, an investor would construct a vertical spread by purchasing the IBM June 55-call while selling the June IBM […]
Why in the World would someone invest in a stock that is only worth a small fraction of a dollar? Simple, the potential for return is great even if the company being invested in does not have a great product or service. Most companies that go public do have something of value but that does […]
If you have an IRA, sorting through all the investment options can be very confusing. Unfortunately, there is a lot of hype out there and, in my opinion, the financial services industry is great at selling the sizzle and delivering very little steak!
This is especially true in the area of annuities. Folks purchase variable annuities […]
Always put your money into bricks and mortar mgrandparents used to say to me. With the population exploding with immigrants and new properties springing up in the smallest of building plots with ever increasing prices, it’s not so easy to get a foothold on the property market.
To find an investment property is equally as difficult […]
In order to ensure overall positive achievement with stock trading, it is highly important that a stockbroker is chosen to help you achieve your investment goals. A stockbroker is a professional person who acts as an agent to aid investors in the buying and selling of stocks. Basically, a stockbroker acts as your […]
The Federal Reserve cut interest rates again yesterday and will be likely to do so again in six weeks. Yields on 5-year Certificates of Deposit are down to around 4.25% and falling. On top of that, the mortgage meltdown has hindered the performance of the entire stock market. If you are retired and need […]
Like most trades, time spreads have a maximum loss for the buyer. You can only lose what you have spent. If you paid $1.00 for the spread, your maximum potential loss is $1.00. If you bought the spread for $2.00, the maximum potential loss is $2.00.
The buyer of a time spread will purchase the out-month […]
In the financial world, the safety belts are being fastened as we are getting sucked into storm conditions for starters, and tornadoes as the main course.
Those, holding vulnerable securities and burdened by other such exposures like holding the some depreciated foreign currency or property, will wish at the moment they rather invested in […]
The stock market is often seen as a complicated financial system for those white collar professionals who buy and sell stocks day in and day out. However, the ability for anyone to trade on the stock market is there and now more so than ever with the availability of computer software and websites to make […]
Time spreads can be a profitable investment strategy if you understand the concept of time decay. A time spread is designed to take advantage of the fact that an options decay curve is non-linear, that is, an option’s value does not decay evenly over time. As an option gets closer to expiration, its rate of […]