Why didn't I put together money on my chance?
Question:
I purchased two calls (NSIAM) on Nutrisystem (NTRI) surrounded by Nov. with a Jan strike price of $65. The price of the option was 5.70 per share. The stock price be ~$67. NTRI is now at 67.82 and NSIAM is at 3.30 per share. This is a $480 loss for me plus fees. What I don't twig is why I lost $ when NSIAM is above the strike price and NTRI is above what it was when I bought it. Can someone explain this to me? THANKS!
Answer:
O dear. So sorry to hear this. It's a classic situation.
Your jan 65 call will expire 1 week from today, and they have enter the final period of their time during which the time value portion of the pick price decays most hurriedly.
Using the figures you mentioned, the intrinsic advantage of these calls is 2.82. If every other inconstant were to remain constant between presently and next friday, the intrinsic significance would be all that would be vanished, although the B/A in this hypothetical luggage would probably be something like 2.75-2.90.
Do you see how the fast approach of the expiration date is causing this effect? Imagine a graph of your call since you bought them in november. Their price fluctuates near the stock on a very short-term tracking proof, but the general trend have been down. This downtrend have recently accelerate.
From now on, your stock will stipulation to be trading close to 70.70 for you to make any money. Today we'd be south of 70.70, but as the days of subsequent week pass this breakeven price will creep north.
You could smoothly find a situation on any given day subsequent week when a modest rise in share price will be not single cancelled but negated by decline in christen option price due to an alternative day of time pro decay within final week.
There are several things you could do, and I'll put the most desirable action concluding.
1) consider if NTRI might, indeed, jump up former 70.70 next week. Any leading news expected? any proceeds announcements coming up?
2) (a) sell the position and bring the loss;
2) (b) sell the position, clutch the loss, and resolve to learn as much as you can from it (most desirable action).
Have you studied as much as you could? Early within your readings you'll encounter explanations of time convenience decay. Excellent tutorials at the Option Clearing Corporation website will explain this concept, next to charts and graphs to make it palpable.
http://www.888options.com
There is a awfully good small book you can download and study for free at the Montreal Exchange website. Click publications, click Equity option strategy manual. This take the reader from introductory basics to advanced concepts resembling the "greeks," which are lognormal progressions that are, in certainty, controlling the time decay that's taking place right now.
http://www.m-x.ca
Borrow books on option trading from your local library. The universally respected text is Lawrence Macmillan, Options as a Strategic Investment.
In short, study, study, study.
In closing, a advice: countless studies have shown that it's the buyers of call and puts who lose money. It's the sellers of these option, often surrounded by double, triple and quadruple spread combinations, who stand to make money, because they are repeatedly selling the extraordinarily time value that you are, alas, losing today.
Can you see - to oversimplify this example - how well your picking seller have done since november when he sold the jan 65 call to you for 5.70? today he could buy put a bet on his call and close out for something similar to 3.30-3.40. Yet the stock itself has merely inched up by $.82. He be selling time value.
In time, you will too. Good luck surrounded by all trades
Remember that the underlying asset price and the pick premium are related, but distinct: an increase in the asset price does not necessarily result within a corresponding increase in substitute price, and volatility is the key. First determine what your break-even point is: the strike price plus the premium salaried. NTRI must exceed 70.70 (65.00 + 5.70) in writ for you to make any money on your chance. It's apparent that volatility have dropped, since the price of the option have decreased from 5.70 to 3.30. In other words, the flea market confidence that the asset price will meet or exceed 70.70 is far smaller amount than its confidence that it will meet or exceed 68.80. Hence, the NSIAM 65.00 appointment is worth less than 5.70.
So although the price of the asset did indeed rise, it didn't rise satisfactory to support an option premium of 5.70. The up to date option price of 3.30 represents the premium you can vend the NSIAM 65.00 call to cancel out your long position, resulting in a 2.40 loss per position. You own 2 positions, resulting in a 4.80 loss, or $480.
The answer is deeply visible. On NTRI to create money before any transaction costs the price should be 70.5 which is not the satchel. It is only 67 connotation you lost $300 there. Something similar might enjoy happened within NSIAM where you lost another $180.
When buying out of the money option this happens. You bought it gaping out of the money where the price have to double to the price of the option bought for anyone to start making money. Naked option are riskier.
My mom trust is looseing money and so and so what else can we invest within?
Question:
I want something not too risking but something that will make money for her should it be does anyone hold any ideas? surrounded by case her trust preserve loosing money since it all stock something that will transport her through her late year?
Answer:
Go to H & R Block and plain up a savings details with their sandbank which are now paying 5.25% interest on reserves account. It is by far the best buy and sell in town right immediately. Rates are subject to change but for presently the rate is the best in town
About Euro America Index?
Question:
Hello all...
I hear that banks surrounded by South East Asia wont have transactions(money to your acount)regarding Euro Emerica Index since closing saturday..Anybody happen to know more or less this and why?
Answer:
if you are already a member, please read the message posted by EA Index contained by your account.
www.eaindex.com/DQXP8024
I want to invest my money contained by the stock bazaar. What's the best and secure path to start?
Question:
Answer:
Suppose you could make one stock purchase and by it own shares contained by the top 100 companies, biggest in open market capitalization (price of stock times the number of shares), on the New York Stock Exchange? Back in July this be regularly selling at $66 per share, but now costs just about $74+. Are you interested?
The symbol is NY and it is an exchange traded fund (ETF) by Ishares.com. There are others like it: DIA (called diamonds) buys the Dow Jones Industrials index stocks; SPY (Spyder) buys the S&P500; DVY buys the top 100 dividend paying stocks surrounded by a Dow Jones index for them.
ETFs are an interesting way to buy a catalogue of stocks easily. They can run down, but they can go up as powerfully. Most ETFs are built because some pattern or grouping of shares do tend to step up. Check it out.
Don't misuse the word safe. In a sandbank you are guaranteed to lose purchasing power after taxes & inflation so that is not sheltered. Don't think have control over something & seeing the total amount go up system you are better off. it is adjectives relative. 4% interest -25% tax vs 3.5% inflation method you lose. Open an account at schwab.com or somewhere & get some Etfs (IAU,EFA,EWA); Close running out investment cos (ADX PEO) & maybe a Reit (SNH) or 2 & see how the adjectives goes. Invest - don't speculate or do nil. Both mean you go wrong.
the best way to invest is over time. you should start putting $ into an indexed mutual fund, exchange traded fund or a polite old low cost, <1.00% a year mutual fund.
Start near no-load, low cost mutual funds. If you know nothing almost stock market sector stick with an index fund.
Then you can tutor yourself about the stock flea market and how it works. Only then should you start trading.
Investors Business Daily covers mutual funds and stocks and offer a wealth of information for any investor.
Your money is other at risk in the stock flea market. But historically, the stock market have outperformed all other investment option, including real estate. If you are interested contained by investing I would suggest a couple of things. First, read "The Little Book that Beats the Market" - this is a great short book that will teach you the fundamentals of effectiveness investing. Then check out http://www.top10traders.com - this is a free site that lets you create a portfolio of stocks beside $100,000 in "play" money. Each hours of daylight the site ranks the best performing portfolios, so you can see how your picks perform compared to other investors. You can also read posts on investing from the best traders, as powerfully as share your own investing ideas. There is also a charting part , so you can see how your portfolio performs compared to the S&P 500.
Here are this month's best traders:
http://www.top10traders.com/top10standin...
Good luck.
Mutual Funds. They are lower yield, but also lower risk than jsut randomly picking stocks to invest contained by
Does anyone know what the word NASDAQ ACTUALLY stand's for?
Question:
NASDAQ is a well specified World stock market Index.
Answer:
National Association of Securities Dealers Automated Quotations
This stands for National Association of Securities Dealers Automated Quotations
NASDAQ (originally an acronym for National Association of Securities Dealers Automated Quotations system) is an American electronic stock exchange. It be founded in 1971 by the National Association of Securities Dealers (NASD), who divested it contained by a series of sales surrounded by 2000 and 2001. It is owned and operated by The Nasdaq Stock Market, Inc. (NASDAQ: NDAQ) the stock of which be listed on its own stock exchange within 2002. NASDAQ is the largest electronic screen-based equity securities market surrounded by the United States. With approximately 3,200 companies, it lists more companies and, on average, trades more shares per daytime than any other U.S. market.[1] The current chief executive officer is Robert Greifeld.
Why and how do investors profit when companies merge?
Question:
Whenever there is a massive merger announced or happening their respective stocks give the impression of being to rise. Why is this and how do I get within on the fortunes? Is there anything I call for to be aware of? What sites provide good info to spot a profitable merger?
Answer:
The track that people profit sour of mergers is because there will be a buyout of one company. This scheme that the company doing the buy-out will pay a premium on the shares. There is no website that will convey you about mergers past they are announced. Once the merger is announced the stock price will be instantly higher. The price is usually a moment or two bit below the price that the company is going to be bought out at. There are two ways to profit with a merger. The first is to own a company formerly a merger is announced. You can do this by betting the most likely companies to be bought out. The second course is to learn nearly the probability of a merger actually going through. This is call merger arbitrage it can be looked up online for more information. Email me if you have more question.
well, partially of their stocks rise.
the other half don't.
race tend to remember the good ones, and forget the others.
unless i know the companies powerfully, i assume that there are lots of folks smarter than me. they buy or get rid of, as appropriate. i'm probably going to be one of the victims.
which is not my first choice.
If you don't own one of the stocks BEFORE the announcement, You won't be in on any gain. The Gain Happens AT the announcement.
Is nearby a bearing to extract a spreadsheet, or a .csv record from yahoo stock charts?
Question:
An example.
http://finance.yahoo.com/charts#chart3:s...
Answer:
http://finance.yahoo.com/q/hp?s=cern...
see at the bottom where it say "download to spreadsheet"
I am 68yrs prehistoric am I too antediluvian to start investing within stocks & etc? What should I invest contained by?
Question:
Answer:
Only invest in what you can afford to lose or hold extra out of your monthly income.
you're not too old to invest. Find the right fund you would be comfortble next to
You're never too old although your goal would be different at 68 than a 30 year olds would be.
I would suggest you read "Investing for Dummies" or any other book that teach you the stock market. It's available at most book stores or on Amazon.
I'd also suggest that you look at Mutual Funds. There are several ETF's that you can buy directly from a stock broker.
You first need to agree on what you want the money to do though. Are you looking at protecting your principal and investing is safe investments or are you looking at more aggressive investments?
Your dune may have a financial guru that can help you amount out what your goals are. They don't usually charge a duty to ask. But their fees to actually invest your money are possible to be higher than it would be if you did it on your own.
No, you're not too dated, but don't "bet the farm" on risky stocks. I'd recommend an index mutual fund, and start out small until you know the ropes.
Your never to old. It depends on the plea why your are investing. Are you looking for long-term gain? Short-term? Just want to save? Do some research on what stocks that interest you. If you want to be past the worst, I would suggest something like Home Depot, G00GLE, Cisco, etc.
I'm not sure what the going price is now but I made a hansom profit in gold ingots. I bought it when the prices were low (cough cough) but I sold it stale (at least the factor that wasn't stolen) when the price jumped up more than double.
no try and ask the edge about annualitys or trust
What you invest contained by depends on your goals and your time horizen. If you entail current income (i.e. you need income from your investments starting NOW) and preservation of your funds is very meaningful, then you should be within bonds, cash, and/or solid blue chip elevated dividend paying stocks.
If you are planning to use the money in 5 years or more--or if you're planning to move some of it to your heirs--then you can invest in a in proportion portfolio of stocks (you probably still want some bonds/cash to control volatility).
Your health plays a role surrounded by your decision too. If you are anticipating medical problems over the subsequent few years or if you don't have much surrounded by the way of strength and disability insurance, you definitly need to own your money in intensely safe investments--like change and bonds--because you may need significant chunks of money with no qualification. Say you suddenly had to shift to the hospital today because you have a heart attack. You wouldn't want to enjoy to be selling stock in establish to pay the bills, since the souk is suddenly way down. You'd be forced to get rid of low and lose money, simply because you have no bread savings.
not at adjectives
try atistock freeware
Vonage (VG) buy or elapse on it?
Question:
Shares of Vonage tumbled to $3.00 on Friday after the courts ruled against them.
Is anyone looking at this stock as a bargain, or is this presently a stock that is too much of a lay a wager?
Answer:
There is a stay on the ruling but unless there is a reversal Vonage and it's clones are screwed. At most minuscule the present business model is. To continue they would own to reach agreement near the land splash phone companies which will raise their costs and not coincidentally shrink the profits. They have zilch to offer within any merger or acquisition move. The customer stand is more likely to return to whoever their local provider is so buying the revenues would enjoy a weak loyalty factor.
Lot of better opps around. At best a independent play.
It's a buy and hold. A takeover could be within the making.
pass
Pass. Aren't they contained by litigation with Verizon?
Pass.
A cheap stock can get hold of cheaper. So far Vonage is poison and people holding since the IPO are bleeding. You want to buy into strength; not frailty. Wait for a positive trend to develop and then review it again.
Bottom picking is impossible and homicidal to your financial health. Hope that help. =^.^=
I placed a sizeable buy on Nasdaq. I thought I would see my demand on Level II but its not showing up. Why?
Question:
I put in a buy lay down for 16,000 shares for a security that is to say listed on Nasdaq. The command did not show up on Level II even though my bid was contained by the top 10 bid orders. I presume the market maker are hiding my order so not to drive up the price. Does anyone know the answer? I thought the top bids next to volume was suppose to show up on Level II.
Thanks.
Answer:
Some directions are in-house exchanges. If my brokerage has three relations who place a buy order for 100 of XYZ and two inhabitants with a put on the market order for 100 of XYZ, next the broker really needs to walk to the exchange for 1 block (100 shares) of XYZ, the other is simply an internal accounting change for two blocks of stocks. I see that near my brokerage when I get an instant mart notice without delay after placing the order. When near is a pause to placing a bazaar order, they have to go to the exchange to delight it.
I think that Level II shows solely orders posted by Market Makers.. Unless you own direct rounting..
Global Investors Community,
http://www.moneyhowto.com
If you bought a share of stock what would you expect to recieve when would you expect to receive it?
Question:
Answer:
You should receive a receipt for your transaction and a statement showing how several shares you purchased, at what price you purchased them and details of the commission, fees and other expenses that were involved contained by the purchase.
If you use a brokerage house (anything from schwab to scottrade and everything in between) you will not receive a "stock certificate" - probability are if you purchased directly through the company - you will not, either. You'll simply get hold of a statement showing what you bought (and typically, in the covering of a company offering, how many shares own been issued - so that you get the message your equity position in the company)
adjectives of these things said - you should ALWAYS research your stock purchases carefully. craft sure that you are buying from a respected (and independently audited) broker or agent. make sure that the company have a future. take home sure that you know how to sell your stock if (hopefully when!) it become profitable to do so.
good luck.
once it reach a good advantage
you dont get an actual stock tag these days, unless it is a program for kids or something that generate a point of sending you one. all it is gonna be is a transaction and you will receive some confirmation letter online or to your broker or anything. It should be pretty much instantaneous, you buy and it shows up as a debit and a share in your information.
What did Congress set up to enforce the imperative regulating the public sale of stocks and bonds??
Question:
I need the answer to that. Please answer this short and simple.
Answer:
The Securities Act of 1933.
The Securities Exchange Act of 1934.
The first requires publicly traded companies to register beside the SEC.
The second requires publicly traded companies to publish financial statements.
Day Trade Stocks or Forex?
Question:
I am a finance student and enjoy experience trading stocks and forex casually for fun, but would close to to pick one to spend more time trading... Has anyone had nouns with any one? I know the obviouse pro's and cons of both, but I am probably overlooking some major ones... Does anyone know which one would be better for sitting contained by and trading a few days a week?
Answer:
Check the website below and have a look may be it will aid you more in decide.
http://money-review-site.com/investment
check out http://ibooyah.com if you want to learn more in the order of trading and become an investor.
I have be using the FreedomRocks forex trading system for the past 3 months and own averaged a 20-30% ROI. The best part is, it solitary takes me, and any FR user, going on for 25 minutes per week to manage the portfolio. The FreedomRocks program does 95% of the work for me. I suppose with this program you could do both, if you prefer, because it take so little time to manage. The FreedomRocks system utilizes a evade strategy, therefore even when the flea market is down, we won't get margined out. The FreedomRocks program just trades four major currency pairs thus eliminate a lot of the confusion and guesswork. My average is 20-30%/month, however,my fellow FreedomRocks clients, and I, own woken up to 30-60% overnight. The best part is you can try the system out free and it simply takes give or take a few 20 minutes to initially setup your live trades, after that it's set it and forget it! Check out www.simple4xinvesting.com
Click on Get started: Free Customer Trial. You can also view a product video at hand. Please, feel free to ring anytime, as I would love to answer any person's questions.
Best Regards
Chris Thomas
541-554-8140
www.simple4xinvesting.com
ctppl541@yahoo.com
Great cross-examine and good luck on your studies. I intuitively lean towards the Forex choice for a couple of reasons.
Forex offer superior leverage at 100/200 or even 400 to 1.
I am also of the opinion that International Currency Exchange is smaller number subject to manipulation (Enron, options verbal abuse, closed door "strategies")
I travel internationally quite a bit and Forex immerse me into the world of international finance and politics which I am finding amazing.
I am also a simple humane of guy and Forex allows me to concentrate on 4 to 6 currency pairs instead of 8000 companies.
And lastly I have be able to clear considerably more money in Forex than contained by my many years investing contained by stocks.
I was also looking for something that would not require my constant attention and allow me to spend the majority of my time enjoy life fairly than sitting at a computer screen.
I look forward to continuing this discussion beside you.
Best luck for a prosperous 2007.
Paul
www.teampip.com
There is a difference between equity, dervatives, debuntures. could u please communicate the differences?
Question:
Answer:
Equity is when you are a stockholder,owner of the company.Deravitive is a option and or warrant on the company stock,it give you the right to purchase but not the obligation to purchase.Debenture is a bond of the company you the bond holder are a creditor of the company and company owes this money to you although it is not guaranteed because you are an unsecured creditor as unwilling secure creditor.
Debentures is a type of debt instrument that is to say not secured by physical assets or collateral. They are backed simply by the general credit worthiness/reputation of the issuer.
Derivatives is an instrument whose price is dependent or derived from an underlying asset. Examples of derivatives include put/call option, futures contracts, and forward contracts.
Equities are just stocks representing an ownership interest surrounded by a security. These are the most commonly traded instruments for the nonspecific public.
Equities are the shares / stocks of a company that can be traded on the stock exchanges. The number of shares of a company is exactly equal to the number of shares that a company issues.
Derivatives are contracts that derive their value from the helpfulness of the share/stock to which they are related. Ex: A contract for the March Futures of Infosys derives it's value from the meaning of Infosys share. Derivatives are not issued by the company. It's more like a virtual share to be precise valid for a limited time span. You can own as many as you want of derivatives contracts.
Debentures are issued by companies and are similar to a loan. The company that issues it, is required to pay an interest on the debenture plus to the investor. If you buy a company's debenture then after a fixed duration of time the company will return your money next to interest. This interest is usually slightly higher than
the wall interest rates.
School Stock Market Thing?
Question:
I have this project contained by history class to chose a couple good stocks that i'll be following for the subsequent week or so. Can anybody suggest a healthy, steady stock that will attain me some good credit.
Answer:
You want a "in shape steady" stock? Congratulations, you are the first not to ask for a 1000% increase short term laying a bet winner. For a concrete investment, a Healthy steady long term champion, I happen to resembling companies that make a product ancestors all over the world use every morning, use up quickly, and after buy more. Energy and soap/toothpaste/shampoo/cleani... supplies are 2 fields I give attention to will be steady short term, and slow but steady growers long possession. People gas up their cars every day and ExxonMobil (ESSO within many parts of the world) seem to be all over the place. For the soap bit of it, companies like Proctor & Gamble, Colgate-Palmolive, Clorox, seem to be to have products used the world over.
Not sure what you be determined by a "healthy steady stock", but why not pick the stock of a company that make something you are familiar next to like Apple (ticker AAPL), Coca-Cola (ticker KO), or if you want to possibly get some brownie points by looking outside the US, consider something similar to DaimlerChrysler (ticker DCX)?
Goldman Sachs(GS), Apple(AAPL), Yahoo(YHOO), Abercrombie & Fitch(ANF), as for the brownie points, go for a speculative stock. I'd move about with Sun Microsystems(SUNW)
I'm doing a similar project for institution. You might want to consider Mattel (the ticker symbol is MAT). The biggest trick is to buy what you know- popular/well known brands usually draw from their name out because they are successful. If you can, I would suggest investing contained by a mutual fund. Go to the fidelity website and look for the mutual funds link on the not here hand side.
Investing within a week or two timeframe makes no sense unless you are a sunshine trader.
Best advice would be to research stocks which hold strong fundamentals. A history of profits, good business outlook, steady and ably known. Home Depot have long been one of those, although surrounded by recent years it's stock price has dropped despite flawless fundamentals. Starbucks is in a similar boat...doing very well but stock price a bit down.
Over the long run good strong stocks will do economically. But if you are looking over a few weeks you could just as effortlessly head to Vegas and bet or black or red.
Refiners are on a run...pick one of copious: FTO..TSO..WNR..ALJ
They run on pace next to gasoline prices...should be up for a couple of weeks at least.( more close to months)
Try Morgan Stanley (MS) on the New York exchange, which just reported strong returns for the first quarter.