Stock market volatility is a measure of how paranoid investors are about the uncertainty and the prospects ahead of them. In a volatile market, you can count on one thing - wild price swings. If you are a great timer of market, then this is great news for you but if you are not the speculative type or can't stomach the risk, why not simply use the volatile condition directly to … [Read more...]
Archives for 12/11/2009
Fosback Index and Mutual Funds.
The Fosback Index,was created by Normal Fosback, has fallen out of favor in recent years. but it is a quick and easy tool that belongs in every mutual fund investor's toolbox. The Fosback Index measures the cash holdings or liquidity of mutual funds against the normal levels. Zero = Neutral Positive = Extra cash. The more positive the more bullish. Negative = Deficit … [Read more...]
Steps to keep in mind while buying call option and put option.
Following are the steps that should be kept in mind while buying call option and put option: Research the online brokerage services specialized in option trading (e.g. OptionXpress)- compare option trading fees and services Open an option trading account with the brokerage service you choose Transfer funds to your brokerage option account Learn the details about … [Read more...]
Kinds of options in trading
Call Option It is an option to buy a stock at a specific price on or before a certain date. Buying a call option gives you the right (but not the obligation) to purchase 100 shares of a company's stock at a certain price (called the strike price) from the date of purchase until the third Friday of a specific month (called the expiration date).In this way, Call options are like … [Read more...]
Trading in options
Option Meaning: An option is a contract, which gives the buyer the right, but not the obligation to buy or sell shares of the underlying security at a specific price on or before a specific date.In simple words , it is a contract between a buyer and a seller that gives the buyer the right, but not the obligation, to buy or to sell a particular asset on or before the option's … [Read more...]