Loans Articles
61: Farmland near Slough: Investors Paradise
According to a recently published report from RICS (Royal Institution of Chartered Surveyors) the price of farmland near Slough continues to rise as demand outstrips supply.
In the North-East alone f
http://marabe7.com/ALL/Finance/Loans/Farmland-near-Slough-Investors-Paradise.html62: Vertical Spreads - Vertical Call Spread and Vertical Put Spread Value
Any spread that has intrinsic value is considered in-the-money.
How can you identify the value of a vertical call spread or a
vertical put spread? Compare the stock price to the strike
prices.
L
http://marabe7.com/ALL/Finance/Loans/Vertical-Spreads-Vertical-Call-Spread-and-Vertical-Put-Spread-Value.html63: Vertical Spreads - Intrinsic Value and the Vertical Spread
In looking at vertical spreads, an investor must take note of
the fact that vertical spreads have an intrinsic value. This
means that a vertical spread can be considered to be
“in-the-money”. If a
http://marabe7.com/ALL/Finance/Loans/Vertical-Spreads-Intrinsic-Value-and-the-Vertical-Spread.html64: Vertical Spreads - Construction of a Vertical Spread
A vertical spread is constructed by the purchase of a call (or
put) and the sale of a call (or put) in the same stock and in
the same month. The only difference between the two options is
the strik
http://marabe7.com/ALL/Finance/Loans/Vertical-Spreads-Construction-of-a-Vertical-Spread.html65: Vertical Spreads
There are two main types of vertical spreads. There is the
vertical call spread and the vertical put spread. Each spread
allows you to do two things. First, you can buy it, making you
long the vert
http://marabe7.com/ALL/Finance/Loans/Vertical-Spreads.html66: Time / Diagonal Spreads - Closing the Time Spread Position
It is important to remember that the time spread will leave you
with several potential positions that can be altered by other
options or stock in numerous ways. There are a number of
decisions you
http://marabe7.com/ALL/Finance/Loans/Time-Diagonal-Spreads-Closing-the-Time-Spread-Position.html67: Time / Diagonal Spreads - Rolling the Position, Call Spread and Put Spreads - Rolling the Position
Rolling the Position
Time spreads are unlike all the other strategies we have
discussed before when we talk about rolling or continuing the
position. In other strategies, the option component is
http://marabe7.com/ALL/Finance/Loans/Time-Diagonal-Spreads-Rolling-the-Position,-Call-Spread-and-Put-Spreads-Rolling-the-Position.html68: Time / Diagonal Spreads - Seller Risk / Reward
The seller of a time spread buys the nearer month option and
sells the outer-month option in a one to one ratio.
In order to profit from the sale of the time spread, the seller
is looking basical
http://marabe7.com/ALL/Finance/Loans/Time-Diagonal-Spreads-Seller-Risk-Reward.html69: Time / Diagonal Spreads - Buyer Risk / Reward
Like most trades, time spreads have a maximum loss for the
buyer. As a buyer, you can only lose what you have spent. If you
paid $1.00 for the spread then your maximum potential loss is
that $1.00.
http://marabe7.com/ALL/Finance/Loans/Time-Diagonal-Spreads-Buyer-Risk-Reward.html70: Time / Diagonal Spreads - How to Calculate the Volatility of the Spread
To be able to calculate the volatility of the spread, we must
equalize the volatilities of the individual options.
First, let’s move the June calls by moving June’s implied
volatility down from 4
http://marabe7.com/ALL/Finance/Loans/Time-Diagonal-Spreads-How-to-Calculate-the-Volatility-of-the-Spread.html71: Time / Diagonal Spreads - Understanding and Properly Calculating Accurate Volatility Levels
Understanding and properly calculating accurate volatility
levels is imperative for spread traders. In order to get
accurate volatility levels, you must first determine a base
volatility for the tw
http://marabe7.com/ALL/Finance/Loans/Time-Diagonal-Spreads-Understanding-and-Properly-Calculating-Accurate-Volatility-Levels.html72: Time / Diagonal Spreads - Vega Values for Calls and the Corresponding Puts
The chart below shows the vega values for calls and the
corresponding puts. As you can see, these values match up in
every instance.
Vega can also be used to calculate how much a specific option’
http://marabe7.com/ALL/Finance/Loans/Time-Diagonal-Spreads-Vega-Values-for-Calls-and-the-Corresponding-Puts.html73: Time / Diagonal Spreads - Effects of Volatility on the Time Spread
When purchasing a time spread, the investor should pay attention
not only to the movement of the stock price but especially to
the movement of volatility.
Volatility plays a very large roll in th
http://marabe7.com/ALL/Finance/Loans/Time-Diagonal-Spreads-Effects-of-Volatility-on-the-Time-Spread.html74: Time / Diagonal Spreads - Effects of Stock Price on the Time Spread
The price of a time spread will fluctuate with movements in
stock price. A time spread will be at its widest when the stock
price and the strike price of the spread are identical (i.e.
at-the-money
http://marabe7.com/ALL/Finance/Loans/Time-Diagonal-Spreads-Effects-of-Stock-Price-on-the-Time-Spread.html75: Time / Diagonal Spreads - Behavior of the Spread
Time spreads can be a profitable investment strategy if you
understand the concept of time decay.
A time spread is designed to take advantage of the fact that an
option’s decay curve is non-linea
http://marabe7.com/ALL/Finance/Loans/Time-Diagonal-Spreads-Behavior-of-the-Spread.html76: Making Money on the Global Warming Crisis
Bad weather may be heading our way. Many very smart voices have raised their volume over the number of alarming red flags pointing to a worldwide environmental catastrophe coming in a few years or dec
http://marabe7.com/ALL/Finance/Loans/Making-Money-on-the-Global-Warming-Crisis.html77: Market Timer, Know Yourself
This commentary covers some of the questions we would ask every market timer (or potential market timer) if we could talk to them personally.Know Your LimitsTimers should use the strategies that suit
http://marabe7.com/ALL/Finance/Loans/Market-Timer,-Know-Yourself.html78: Time / Diagonal Spreads - Time Spreads
Time Spreads, also known as Calendar Spreads, are an ideal way
to take advantage of time decay and changes in implied
volatility. The time spread strategy focuses on the movement of
time and volati
http://marabe7.com/ALL/Finance/Loans/Time-Diagonal-Spreads-Time-Spreads.html79: Tax Deferral Strategies - Several Different Scenarios
If the stock were to trade down in an area between $80.00 and
$82.00 by January 2004 expiration, you would be able to sell the
stock for its exact price at that time. You would lose a little
money
http://marabe7.com/ALL/Finance/Loans/Tax-Deferral-Strategies-Several-Different-Scenarios.html80: Tax Deferral Strategies - Sell A Call Option
To capitalize on this strategy, your call must meet certain
criteria. First, the time to expiration should be just beyond
the stock’s one year ownership time period. You need to get
beyond the one
http://marabe7.com/ALL/Finance/Loans/Tax-Deferral-Strategies-Sell-A-Call-Option.htmlPage 4 of 32
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