Historical Options Charts – Why Learn to Read Stock Charts?

February 22, 2012 By Leave a Comment

Historical Options Charts

Two basic historical methods:

For many years there were two basic methods that investors and traders used to study and buy or sell stocks. The first method readily available was the “ticker tape”. In the early 1900s, ticker machines could convey the price of the stock as the daily trading proceeded minute-by-minute and second-by-second. This provided trading in almost “real time”. Historical Options Charts

The second method that investors used was, and still is, studying the financial activity of particular companies and industries. This method is commonly known as “fundamental” analysis. As important accounting standards came into play, investors could plot and analyze financial trends in sales, earnings, price-to-earnings ratios, balance sheet activity such as cash in bank, debt and capital activity.

The Internet, Stock Charts and “Cooking the Books”:

More recently, and now certainly with the advent of the Internet, stock investors and traders are able to capture a visual picture of the price of a stock over time.

Trend analysis and studying stock price channels became more popular and powerful upon which to make wise investment decisions. It’s been said that “the price doesn’t lie.” This truism became more fully appreciated after investors became aware that manipulation and outright lying when it comes to financial reporting were not just potential problems. They were realities.

“Cooking the books”, the common term for financial misrepresentation, has brutally affected many investors in recent years.

Many have lost their entire retirement savings. Others simply have lost their confidence concerning where to place their “nest egg.”

As a consequence, many investors and traders have turned to stock chart analysis. There still exist possibilities for certain holders of financial information to try and manipulate stock prices. However, stock chart analysis does seem to offer a good alternative investment strategy despite these lingering potential problems of stock price manipulation. Historical Options Charts

Studying stock charts can be combined with other strategies using other technical indicators such as stochastics. Thus, technical analysis is another aspect of using charts and often can be quite complex.

Nevertheless, one way to avoid having to rely upon financial reports is to study stock charts. But, of course, some investors and traders use both methods: fundamental and stock chart analysis.

Another Case for Studying Stock Charts:

There is another reason for analyzing stock charts other than relying on fundamental activity. Many investors are not “in to” crunching numbers. Many people learn better visually. Learning to read stock charts offers these investors and traders a method to not only do historical analysis but also to try a discern patterns and project trends into the future.

Stock Charts as a Timing Tool:

Whether you are more inclined to crunch the numbers or study a stock chart you want to keep this in mind. Fundamental analysis will often reveal “which” potential stock or stocks to invest in; and stock chart analysis will often show you “when” to invest in these stocks.

Timing your investment purchase or sale is extremely important. It is possible to invest in a good stock but at the wrong time. Stock chart analysis will often reveal when to get in and when to get out. Or this said in another way, you have to know when to hold ‘em and when to fold ‘em to protect and grow your investment portfolio. Historical Options Charts

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Butterfly Options Spread – A Strategy For Flat Stocks

February 21, 2012 By Leave a Comment

When your analysis indicates that a particular stock will be flat for the near future (e.g. not trend up or down), there are many options techniques that can be used to profit from this scenario.

One low profit, low risk options strategy is the butterfly spread. This can be used when a stock is trading really close to a strike price, and you do not think it will have a big move before option expiration.

In this case, the position is created from four call options with the same expiration: You simultaneously buy a call option at a higher strike price, buy a call option at a lower strike price, and sell two at-the-money calls.

For example, let’s say that IBM stock is trading at $ 100. A trader can sell two September 100 calls, buy one Sept. 110 call, and buy one Sept. 90 call. The Sept. 100 call trades at $ 5, the Sept. 110 call trades at $ 2.10, and the Sept.

90 call (which is in the money) trades at $ 15.

Then, putting on the butterfly spread will cost (15+2.10-10) = $ 7.10 (or $ 710 since options are in units of 100 shares).

This $ 710 is the maximum loss for the position, and will occur if, at option expiration, IBM is trading above $ 110 or below $ 90. Above $ 110, the losses on the short calls cancel out the profit on the long calls. Below $ 90, all four options expire worthless.

The maximum profit occurs if IBM is unchanged at $ 100. Then, all the options except the long 90 call will expire worthless, and that call will be worth $ 1000, for a maximum net profit of $ 290.

NOTE: A butterfly spread should only be put on using a cheap discount options broker, because it involves at least 4 commissions (e.g. four to put on the strategy, and more if option(s) are exercised).

Praveen Puri has 20 years of trading and investment experience – including serving as a consultant to major insurance companies, banks, and the Chicago Board of Trade. He is the author of Stock Trading Riches, which details a mathematical stock trading method that isn’t exciting or “sexy”, but is extremely lucrative.

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Shorting Option Straddles to Profit From Flat Stocks

February 20, 2012 By Leave a Comment

There are times when the stock market lacks volatility. Stocks remain flat, and there just isn’t any news strong enough to move shares one way or another.

Traders, however, do not have to sit completely on the sidelines and ride these stock market phases out. Instead, it is possible to profit from flat stocks by short-selling option straddles.

This position is initiated by simultaneously shorting a call and a put option on the same stock, at the same expiration date and strike price. The straddle seller will pocket a premium for both the call and put option. This is the maximum profit that the seller can make.

Ideally, at option expiration, the price of the stock will be around the same price as when the options were sold. If, however, the stock moves, one of the options will expire worthless and one of the options will be exercised and the seller will incur a loss while settling his or her obligation.

If this loss is more than the combined premium, then the short straddle would have been a losing position.

Let’s look at an example. We will pretend that, when Apple was trading at $ 242 per share, we simultaneously sold a September 240 call for $ 5.10 and a September 240 put for $ 1.68. Notice that the call is much more expensive because it is currently in the money (i.e. Apple stock is trading above the call price).

We pocket a combined $ 6.78 in premium. Thus, we break even on the trade if, at expiration, Apple stock is trading at $ 246.78 or $ 233.32. If the price is inside this range, we will have a profit. If the stock is outside this range, we will have a loss.

Please remember that options have a higher probability of loss than stocks, so you should limit your investment in options to no more than 10% of your portfolio.

Stock Trading Riches can teach you more about successful stock trading and investing.

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Stock Investment Strategy – Get More Leverage by Trading Options

February 19, 2012 By Leave a Comment

Options trading is an advanced stock investment strategy, but if you learn how it works you can substantially increase the amount of leverage that you have with your money. Rich Dad, Poor Dad author Robert Kiyosaki refers to option trading as the investment strategy of the rich.

Why is this?

Option trading simply gives you more leverage.

An option is a contract to buy a stock at a predetermined price. Stocks that have options available will usually have option contracts which expire on a monthly basis. Option contracts always expire on the third Friday of the month in the contract. For example, a July contract expires at the end of the trading day on the third Friday of July.

How does this give you leverage?

Let’s take a theoretical example with a fictional company “Poodlez.” A recent close price for Poodlez (POODZ) was $ 438.77 per share.

If you wanted to buy 100 shares of Poodle, you would need $ 43,877. If Poodle went to $ 440.77 per share your total earnings on your $ 44,077 investment would be a mere $ 200 or a 0.4% return on investment.

Now let’s look at the Poodlez July option contract for $ 440 per share. Just like the stock price, option prices go up and down as well. Let’s say the July contract was available for $ 19.70 per share. If you bought this contract today you would have the right to buy Poodlez at $ 440 per share, between now and the end of trading day on the third Friday of July.

For the sake of this example let’s say that Poodlez goes to $ 470 per share. What you could then do is execute the contract with your broker. They’re setup to do this and will buy your Poodlez stock at $ 440 a share and sell it at the market price of $ 470 per share.

The great thing about this is that you don’t need the $ 44,000 to buy the stock. The broker buys and sells it at the same time and you collect the profit.

By trading options you gain leverage over a stock that you possibly could not have afforded to buy outright.

There is a downside option trading.

Options are like buying ice cubes.

The moment you buy them, they begin to melt. In the above example if Poodle doesn’t go high enough between now and the third Friday of July to make you a profit, the option contract will simply expire and your investment will disappear.

A good way to think of options, if you don’t like the ice cube analogy, is that you are buying time.

While options can appear confusing they follow the basic rules of buying any stock. You’re buying a contract which gives you leverage over a stock so you should expect most of the fundamentals to be the same. This means that the research you do on a stock and its company before a trade still applies.

Investment houses usually require that you achieve a special trading status before trading options. Check with your broker to learn what those requirements are and study stock option investing as a smart addition to your stock investment strategy.

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Guaranteed Stock Market Bonds – Are They A Good Option?

February 17, 2012 By Leave a Comment

At the moment, one of the frustrations for savers is the low rates of return they are experiencing on cash deposits. This has resulted in some investors being persuaded by salespeople to put their money into a Bond that is linked to the performance of the stock market in some way or form.

There are many articles appearing in the press on this, and as usual the banks and building societies are coming in for criticism.

According to Money Mail, savers have committed £40 billion to these ‘structured products’, which usually have a 5 or 6 year timespan.

The patter goes something like this:

“How would you like to earn stock market-like returns without risking your capital?”

Sounds good doesn’t it?

Well, yes it does. But like virtually everything that sounds too good to be true, it nearly always is! Some of the problems with these types of product can be obvious, but quite often not so.

Looking at one current offer by a leading building society, this is what the product boasts:

- half of any rise in the FTSE 100 over six years

- a minimum 10 per cent return before tax and protection of your capital

So, if the index rises by 20 per cent or less, you will see a 10% return.

But this is just a yearly return of about 1.66% (simple interest, not compounded), and even if the FTSE grows by 50% the return is just 4.16% pa.

Many cash deposit accounts are offering more than this over say 5 years, and of course these don’t have market risk! Other products have even more complicated rules linked to an index, and don’t forget that any proceeds will be taxed. Also, if the stock market falls it is likely that you will simply receive your capital back with no interest.

One story the press picked on was an 80 year old lady who was persuaded to invest the £13,053 she had in cash into such a product.

Her experience was that she made £1.02 over 5 years.

Of course, you could argue that this is the gamble, but there has also been far worse stories such as certain schemes that were backed by Lehman Brothers who went bankrupt.

The common theme here is that these customers feel cheated and say they would not have invested if it had been explained to them in full.

So what do you need to be wary of?

- which stock market index is it linked to?

- how is it taxed (income or capital gains)?

- what are the charges?

- how EXACTLY does it work?

- is the capital fully protected?

- where is it invested – how safe is the company holding it

- are dividends reinvested?

On the last point – reinvested dividends – there is a major problem. That is that while it is true that the stock market can deliver high returns, it is important to understand how this is achieved.

If you took £10,000 in the FTSE All Share Index in 1990, this would have grown to £22,220 by 2010. However, by reinvesting the dividends that the companies earn over the years, this figure would jump to £35,500!

The newspaper article crucially points out that these types of bonds EXCLUDE dividends from their calculations!

So, it is very difficult for us to see the plus side of these bonds, particularly as they could reduce your rewards for you taking a given level of risk, as well as usually paying the bank large commissions from your money.

(It is worth remembering that National Savings, backed by the Government occasionally have Guaranteed Bonds on offer, although not at present.)

There may be investors out there who are happy with them, but, in our experience, these products are very lucrative. Unfortunately, they are often lucrative for the sellers of these bonds – not you!.

The Financial Tips Bottom Line

Make sure you are FULLY aware of the potential upside and downside before you part with any of your money. Remember, it’s YOUR money and the person helping you make your investment decisions (if you use someone) should be there to educate you and not simply sell you what they want.

Risk and return are related. Ensure that you have your own strategy for investments that you are comfortable with, and avoid products that seem to be too good to be true.

ACTION POINT

Do you have one of these Guaranteed Stock Market Bonds? Is it part of an overall strategy, or simply been bought ad hoc? We’d suggest you take the time to review this and find out what your options are.

Ray Prince is a fee based Certified Financial Planner with Rutherford Wilkinson ltd, and helps UK Resident Doctors and Dentists plan to achieve their financial objectives. Just visit the specialist website for dentists’ and medics’ financial planning where you can request your free retirement planning guide. Rutherford Wilkinson ltd is authorised and regulated by the Financial Services Authority.

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Options Trading Course – Understanding the Stock Market – Part 1

February 16, 2012 By Leave a Comment

If you are a totally new beginner to the stock market, mostly likely you are unfamiliar with the stock market terminology being used by the market. Maybe you have always heard about them on the TV news or newspapers but do not know exactly what these terms actually mean.

We will give you some simple explanations on such market terminology below so that you can better understand the market.

1. Insiders are individuals within a company who have material knowledge about the financial status of the company which is not yet known outside of the company, which is why they are known as the Insiders.

2. Institutions are the large brokerage houses that buy and sell stocks in very large quantities. Some examples of these large brokerage houses are Merrill Lynch, Goldman Sachs etc.

3. Retail investors are the general public who invest in the stock markets.

4.

Bullish Market: When we say we are bullish about a stock or bullish about a stock market, our expectation is that the market should go higher.

5. Bearish Market: When we say we are bearish on a stock or bearish on the stock market, then our expectation is that the market should go lower.

6. Bid Price Vs Ask Price: When we want to buy or sell a stock, we will be a buyer at the Ask Price and look to sell at the Bid Price. The difference between the Bid and Ask Prices is the Spread. The person who gets the spread is known as the market maker because that is their job. They match buy and sell orders, thus they make a market.

We hope our short explanations above will give you a better understanding of the terminologies. If you are interested to find out more, you can check out our options trading course which provides more comprehensive step-by-step training for beginners new to options trading.

About Wealth Mentors:
Aaron Sim is the CEO of Wealth Mentors. Aaron let go of a 6-figure job as Finance Director of Unisys Singapore to start his coaching and training business. In just 4 years, his business has gone from zero to a successful S million operation. Aaron is Mirriam MacWilliam’s first protege in Asia and is now a successful options trader. He is a CPA by training and has been featured in the Sunday Times, Star, The Standard and Shang Hai magazine.

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Fast Track To Options Success – Important Information For Stock Investors

February 15, 2012 By Leave a Comment

Options University, arguably the online leader in  options education, has just issued a tidy report that shows you how options can help you be a better, more consistent trader…

Check out this new report.  It explains why thousands of investors are running away from mainstream investments, like stocks…

What are they replacing them with??

Hint: (I’m already investing in this regularly…)

Find out by following the link below:

==> Visit Fast Track To Options Success Official Website

Option trading has many advantages over other investment vehicles. Trading in option contracts can give an investor the flexibility to place bets on very specific market outcomes.

For example, an option trader can make a bet that in 6 months time a stock will be trading either above a certain price or below a lower price – an each way bet if you will.

If the stock trades between these two prices in 6 months, the trader will lose a predetermined amount.

Option trading is probably one of the least understood forms of investment that however can offer a wealth of possibilities for those who get involved into it.

Such major option trading markets as the Chicago Board of Options Exchange, the American Stock Exchange, the Philadelphia Exchange, the Pacific Exchange and the New York Stock Exchange in the USA as well as markets in London, Tokyo and other world megapolises make great profits in option trading as well as in forex currency options trading.

Option trading is becoming more and more popular among individual traders, professionals and institutional investors as it may be extremely rewarding provided that the decisions are well-elaborated and grounded on research.

Like all investments, option trading carries a certain element of risk.

So, what is option trading system all about?

Basically, options are contracts concluded between two parties, the buyer and the seller, giving the former rights for the purchase or sale of some underlying asset, with specification of price and validity period. They are also called derivatives for two reasons: the first one claims that option trading derived from stock and futures trading; and the other one explains that option price always depends on (derives from) the value of the underlying (be it stock, index or some commodity).

Option buyer (holder) can exercise his/her prepaid option to dispose of some financial product within agreed time interval but is not obliged to do it. On the other hand, option seller (writer) is obligated to agree to either of the buyer’s decisions. An obvious advantage of option trading is that money can be made without large investments of capital.

If you’re a trader, take 10 minutes and go through this report that outlines the investment vehicle that thousands of stock investors are flocking towards.

==> Visit Fast Track To Options Success Official Website

Rob Trader – Forex Expert
http://tradingtoollist.co.cc/

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Options Trading Course – Understanding the Stock Market Part 3

February 13, 2012 By Leave a Comment

Today, I will introduce to you several more stock market terminologies.

1. SEC
The stock market is regulated by a Securities and Exchange committee known as the SEC. A company can be fined by SEC if the company is not following certain regulatory requirements, for example, failure to file earnings reports of the company online etc.

2. Commission
This is the fee that you will need to pay for every time when you buy a security or when you sell a security. We called it the commission and it can vary from one brokerage firm to another depending on the type of brokerage firm that you are using.

3. Stockbroker
Individuals who transact the sale of shares are known as stockbrokers. Stockbrokers are employed by brokerage houses.

4. Full Service Vs Online Brokerage Firms
There are various different types of brokerage firms available for the investors.

There are the full services brokers which may charge higher commissions for their services and which may be for some individuals. There are also the discount brokerage firms or online brokerage and these firms generally charge lower commissions.

5. Public Companies
Companies whose shares are being traded on a stock exchange are known as public companies or public listed companies. A company cannot go “public” on the stock market just because they want to. They need to be approved before they can sell the shares of their company in the stock market.

In my option trading course, you will learn how to trade with a direct access online brokerage firm using my proven and time-tested options trading system to make more money using options.

About Wealth Mentors:
Aaron Sim is the CEO of Wealth Mentors. Aaron let go of a 6-figure job as Finance Director of Unisys Singapore to start his coaching and training business. In just 4 years, his business has gone from zero to a successful million operation. Aaron is Mirriam MacWilliam’s first protege in Asia and is now a successful options trader. He is a CPA by training and has been featured in the Sunday Times, Star, The Standard and Shang Hai magazine.

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Options Trading Course – Understanding the Stock Market Part 2

February 12, 2012 By Leave a Comment

This is a continuation from my previous article to help options trading beginners to quickly and better understand the stock market terminologies.

Here is another list of terminologies to help you to understand the stock market basics:

1. Stop Loss Vs Stop Limit:
You will hear investors talking about Stop loss or Stop limit. So what do they actually mean? By now you should have the understanding that we have the ability to place orders online that enable us to protect our investment capital. Such live working orders are known as “stops”.

In the stock market, there are 2 popular types of stop orders, known as a stop loss and a stop limit.

Let’s talk about the Stop Loss first. The stop loss is where the computer is set to sell your position in the event the stock reaches that price level. In that case, the stock is sold at market price and you are out of your position.

This is an ideal scenario because we are no longer subjected to constant monitoring of the markets!

The second type of stop is the Stop Limit. This stop limit indicates that the stock will be sold at the price indicated.

2. Limit Order Vs Market Order:
There are 2 types of Orders that we can buy or sell online. They are either Limit Orders (which means at that price or better) or Market Orders (which means at whatever available price). Market orders are usually for fast moving, leveraged trading instruments such as futures, currencies etc.

3. Filled Order:
When you have a filled order, this means that the order that you have placed online to purchase has been executed. For example, your purchase of 100 shares of IBM has been executed, you now own 10 shares of IBM and your order has been filled.

At this stage, you should already have a better understanding of the stock market basics.

If you are looking for a proven options trading system to help you create wealth on the stock market using options as a financial instrument, my options trading course can accelerate your profits generation.

About Wealth Mentors:
Aaron Sim is the CEO of Wealth Mentors. Aaron let go of a 6-figure job as Finance Director of Unisys Singapore to start his coaching and training business. In just 4 years, his business has gone from zero to a successful million operation. Aaron is Mirriam MacWilliam’s first protege in Asia and is now a successful options trader. He is a CPA by training and has been featured in the Sunday Times, Star, The Standard and Shang Hai magazine.

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Suning Stock Option Incentive Plan Was Officially Launched On January 29 – Suning Appliance Channels

February 11, 2012 By Leave a Comment

Jan. 29 afternoon

Suning

Board of Directors meeting, passed the “Su Ning

Electrical

Co., Ltd.

Stock

Stock Option Incentive Plan “, which means that many has been

Investment

And the community is widely concerned Suning equity incentive measures, and finally began.

Disclosure of the incentive plan, come up with Suning the 2200 shares, 3.05% of total share capital, less than one third may be exercised incentive stock options, to encourage

Management

Team exercise price of 66.60 yuan, to Jan. 29 closing price for the benchmark. Suning ministerial authority over the object, including managers, chain stores and some major department store manager who now clear for more than 34 managerial managers receive authorization, and another 349 million shares of the specific incentive target will be the end of 2007 before implementation. All stock options will be implemented in three phases exercise strict performance and growth in the last 3 years tied up assessment. Suning Appliance’s equity incentive program came to realize the management team, investors, regulators were satisfied.

Suning listed as a small plate, the last 3 years has maintained a high growth. Retail industry is talent-intensive industries, expansion of the scale with Suning, increasing demand for qualified personnel, staff incentives have increased accordingly. But the simple

Salary

Incentives, can not meet the business people, team building needs. Therefore, the management team of conditional grant of stock options, managers with individual effort, ability, and team

Cooperation

Promote the sustainable development of enterprises, steadily improving operating performance and stock value-added benefits were made managers and corporate investors, regulators stood the same position, and pursue long-term development of health.

On Suning equity incentive plan is the most enthusiastic investors, with the

Home Appliances

Channel integration faster and faster, growing market space, investors optimistic about the prospects for Suning. In the April 2006 shareholder meeting, investors clearly suggested that the implementation of equity incentive Suning, Suning management team and investors to bundle up, benefit sharing and risk sharing. The second half of 2006, the occasion of the broader market rebound, investors concerned about the problem is that most equity incentive plan Suning when implemented. With the introduction of equity incentive programs, Suning investors will undoubtedly be a future development of security commitments.

Small plate as Suning is the fastest growing and highest market capitalization blue chip stocks,

Securities

Regulators on the implementation of equity incentive programs Suning extra attention to the issue. Especially for the right conditions for the line management team proposed strict requirements. To ensure the effective growth of the company and the interests of investors are effectively protected under the premise of the management team to conduct the exercise.

Suning top in an interview that the implementation of equity incentive programs are Suning internal governance structure and management innovation of a major breakthrough in long-term development for enterprises, the introduction of strategic human resources, to improve team cohesion, enhance the competitiveness of enterprises has inestimable value.

[Keyword Search]:

Suning

Appliances channels

Zhang Jindong

Large

In

Small

I am China Manufacturers writer, reports some information about hp 160gb personal media drive , buffalo network drive.

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