What is the definition of an option spread and the definition of a straddle?
Answers: Option spread is the difference of two options, usually one is sold and another is brought. For example, a call credit spread is selling a call and buying a call further away. You normally use this strategy when you expect the stock to move neutral or downwards.
Straddle is a position with a call and put at the same strike price and expiration date. This is used when you are not sure of the market direction but feel it will move significantly in a short period of time.
Investing near a Vanguard 401k?
I have only just signed up with my employer for a 401k next to vanguard. They match $.50/$1 for the first 5% of my pay envelope. I current contribute 5%($200/month)My balances and funds are:
Vanguard Long-Term Invest-Gr Inv - VWESX(Bal: 193.25, 10% of spanking new contributions go here)
Vanguard Wellington Fund Inv - VWELX(Bal: 240.74 30% of brand new contributions go here)
Vanguard Total Stock Mkt Idx Inv - VTSMX(Bal: 305.35 30% of untried contributions go here)
Vanguard International Growth Inv - VWIGX(Bal 319.46 30% of fresh contributions go here)
I'm not extremely concerned next to this because I'm sure that no matter what, I'm going to come out next to more than I would've had beforehand with the 1/2 employer clash, so I won't lose any of my money necessarily.
I am concerned though because I keep loosing more and more money. Should I put what I enjoy into a low risk investment and keep foreign contributions going into the funds that are loosing, or just make tracks it alone because it's only $1,000?
I'm 25 and approx 30k/yr
Answers: Grats for getting a righteous start on your 401k, and you have a great fund home for your 401k choices !
Your allocations are fine and since you're so young you'd want to stay contained by (high risk) stock funds for the long haul.
Don't verbs about short occupancy blips in the flea market. you have ~40 years to be right going on for being surrounded by stock funds.
If it were me - I'd move about 33/33/33 or 30/30/40 on the last 3 funds you mentioned - consequently I'd be able to compare returns by looking at the dollar amount.
How do I extend an option position? Do I have to sell to close my original first?
Answers: The expiration date on an option is fixed. It cannot be extended.
What you can do is "roll" the option.
If it is a long position, you would want to use a spread order to "sell to close" the existing option and "buy to open" an option with a later expiry.
If it is a short position, you would want to use a spread order to "buy to close" the existing option and "sell to open" an option with a later expiry.
Either way you closed your original position and opened a new one. You did not modify an existing option.
I agree with Zman. You may not be able roll the position because Scottrade has options levels that limit you from doing certain strageties. First check what option level you are authorized. Option levels can be increased by asking, demonstrate understand of cover call and call buy, or length of account.