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...]
How to deal in shares ?
Share Dealing If you would like to buy additional shares or sell shares, You can deal over the telephone or on the internet. You can buy or sell shares in certificated format and dispose of or increase holdings .We have outlined the range of options below to help you decide which route is best for you. Internet Share Dealing This service provides you with a simple way … [Read more...]