There are very few certainties in life. We all know the old adage about death and taxes being among life’s only guarantees. Add to that list the fact that brokers are in business to make money for themselves, not you. Hence, there’s no such thing as commission-free trading. It simply doesn’t exist in any asset [...]
The individual investor will typically include some stocks in their investment portfolio. And whether they are a long term trader or in it for much quicker returns, many investors understand and feel somewhat comfortable with the concepts and techniques of trading stocks.
Options tend to be much less understood – and therefore avoided. But Options can [...]
What happened to the stock markets these past two weeks?
Anyone at all involved in investing or trading no doubt personally experienced it- the stock markets went through a major correction! And in these days of the “World Economy” such a correction can be triggered by news from anywhere in the world. As it did [...]
The up scenario
In the up scenario, the maximum gain that can be attained is the stock finishing at $10.00 or higher.
At $10.00, you would profit from the full value of the extrinsic value of the option which is $.50 and you would also have $.50 of capital appreciation from the stock for a total of [...]