Options - Strike Price and Expiration Date Definition: Options trading uses several related phrases that are unique to options markets. Some commonly used, but often misunderstood options phrases are : Strike Price The strike price (or exercise price) of an options contract is the price that the underlying security will be bought or sold at if the option is exercised (i.e. … [Read more...]
What are Time Premium in Futures Options?
Time Premium in Futures Options Definition: Time premium describes the part of an option price that is above the intrinsic value of the option. Typically, the more time remaining on an option, the higher its time premium. The reasoning behind this is that the more time you have on an option, the better chance you have for the underlying futures contract to move in your … [Read more...]
What is Jumbo Fixed Mortgage Rate
What is Jumbo Fixed Mortgage Rate Still many people are confused about what the call jumbo fixed mortgage rate or jumbo mortgage rate. In the past, moneylenders, and the "lords" (Europe 16 to 18th century) are presented home mortgage loans to "poor" people, often pheasant and labor. Still many people are confused about what the call jumbo fixed mortgage rate or jumbo mortgage … [Read more...]
Exit Strategies for Public Companies
Exit Strategies for Public Companies There are three ways that public company insiders can convert their equity into cash. 1. They can sell their stock to the public. This is the goal of the insiders in most OTCBB and Nasdaq Small Cap Companies. It's summarized in the axiom "Pump & Dump." The stock is promoted as the insiders sell their shares into the public … [Read more...]
Ten Short Selling Strategies
Short Selling Strategies here are dozens of ways to sell short a stock. 1. Traditional Short Sale: Borrow the stock against a fifty percent margin. This is the only type of short sale that can be squeezed when the share price moves up because the short seller must add money to their margin account. 2. A Market Maker Short Sale: U. S. Market Makers are not required to … [Read more...]