Tag Archives: stock market

The Birth Of Weekly Options

During 1973, the standard call options gain its popularity. Chicago Board Options Exchange started the standard call options. In the year 1977, the put option was established after the success of the standard call options. Put options gains it popularity as time passes by. There was a massive increase on its trading volume and it gave a remarkable annual growth rate. Basing from this big increase, it only shows that investors really understands the concept of options. The overall increase was brought about by the familiarization of the investors on using these options.

In 2005, a new class of option called Weekly Options by Chicago Board Options Exchange. Thirty two years after the first introduction of call options weekly options were introduced. The weekly options were called by investors as \”weeklys\”. Options may differ on many ways, however, \”weeklys\” and monthly options are comparable. They also have differences and one of it is the capability of weeklys to exist by eight days only. You can get weekly options on Thursdays and it automatically expire after eight days. Monthly options has twelve monthly expirations and expires every third Friday of the month. Weekly options has the benefit of fifty-two expirations on a yearly basis and any investors of it will surely enjoy it.

Calendar Spread: Whatever Goes Down Must Go Up

Even though the Calendar Spread may be used in numerous stock market environments, they operate the best in low volatility climates. While soaring volatility levels are wonderful for these trades, sinking volatility levels bring them a lot of pain.

Because calendar spreads generate profits the fastest at neutral to rising volatility levels, many calendar spread traders will wait until an underlyings volatility levels are either at the lowest level of their average range or at least until they are in the lower end of their average volatility levels before placing a trade.

By waiting until these levels are reached, the calendar spread trader is hoping to increase the odds that the volatility levels will either remain where they are and not sink down further (which could wind up hurting the trade), or that they will start to rise back up (which would put their position into good gains quickly).

Normally volatility levels sink as the market moves upward and rise as the market moves down. This is why many option traders will place calendar spreads when they have a bearish view on the market.

Do You Really Know What Penny Stock Investing Is?

A penny stock is any stock selling for less than a dollar. At times, some investors use the definition to indicate stocks that trade for less than fifty cents.

Some investors use the term penny stocks to indicate stocks trading off a major stock exchange that are worth less than a dollar. Regardless, it doesn\’t matter where the stock comes from, and the defining element is indeed the price itself.

Penny stocks sometimes go by different names. Names such as nano, micro, and small caps, are sometimes used interchangeably with penny stocks. Penny stocks come from companies with a small amount of capitalizations, which means the total value of their company stock.

You can invest in penny stocks with a small initial investment, but you usually have less information to go by when it comes to evaluating the company. Larger companies selling more expensive stocks are required to file reports with SEC.

But even though penny stocks don\’t afford you that luxury, it\’s a way to get in the ground floor of investing with an up-and-coming company that has limitless potential. If you don\’t mind to do a little extra research, penny stocks can payoff quite beautifully.

Investments And Investors – What Are The Risks Involved?

There are 3 types of investments. These include stocks, bonds, and cash. Sounds simple enough? Well, unfortunately, it gets very complicated from there. With each type of investment, there are numerous types of investments.

There is quite a bit to learn about each different investment type. The stock market can be a big scary place for those who know little or nothing about investing. When it comes to the amount of information you need to learn, it\’s directly related to the type of investor you are. There are also three types of investors: conservative, moderate, and aggressive. Also catering to the two levels of risk tolerance (high and low) are the different types of investments.

Often investing in cash is what conservative investors do. This means that they put their money in interest bearing savings accounts, money market accounts, mutual funds, US Treasury bills, and Certificates of Deposit. These investments are safe and grow over a long period of time. These are also low risk investments.

Moderate investors often dabble in the stock market and invest in cash and bonds. Moderate investing may be low or moderate risks. Moderate investors often also invest in real estate, providing that it is low risk real estate.