A put is an option contract that gives the owner the right, but not the obligation, to sell 100 shares of the underlying… Read More

A call is an option contract that gives the owner the right, but not the obligation, to buy 100 shares of the underlying… Read More

A call is an option contract that gives the owner the right, but not the obligation, to buy 100 shares of the underlying stock at a specified price (which is known as the strike price of the call) at any time before a specific time (the expiration date of the call). Read More

A call is an option contract that gives the owner the right, but not the obligation, to buy 100 shares of the underlying stock at a specified price (which is known as the strike price of the call) at any time before a specific time (the expiration date of the call). Bullish investors would use calls because the value of the call should increase if the price of the underlying stock goes up. The potential profits for an investor owning a call are unlimited, because the underlying stock can go up to any price. The maximum possible risk on a call is limited to the total price paid for the option contract. Changes in the price of the underlying stock will lead to a change in the value of the call, as will changes in the volatility of the underlying stock. If… Read More

After falling more than 38% from its high, many investors are now wondering whether Apple (NASDAQ: AAPL) is a buy below $500. From a trading perspective, the answer is “no,” and the only reason to think about buying Apple after such a big drop is based on fundamentals. #-ad_banner-#Fundamental… Read More

Stocks were generally higher last week, with the notable exception of Apple (Nasdaq: AAPL). Traders often expect a pullback or a consolidation after a big gain like we’ve seen in the past few weeks. The big… Read More

Stocks were generally higher last week, with the notable exception of Apple (Nasdaq: AAPL). Traders often expect a pullback or a consolidation after a big gain like we’ve seen in the past few weeks. The big question is whether that will be a reversal or a pause in a strong uptrend. S&P 500 Moves Up Without Apple Apple opened last week as the largest company in the world when measured by… Read More

Stocks were generally higher last week, with the notable exception of Apple (Nasdaq: AAPL). Traders often expect a pullback or a consolidation after a big gain like we’ve seen in the past few weeks. The big question is whether that will be a reversal or a pause in a strong uptrend. S&P 500 Moves Up Without Apple Apple opened last week as the largest company in the world when measured by stock market capitalization. After a 12% drop, Apple had ceded the top spot to Exxon Mobil (NYSE: XOM). Apple accounts for more than 3.5% of the S&P 500 index, which makes the gain in that index noteworthy. It was broad-based strength that pushed SPDR S&P 500 (NYSE: SPY) to a 1.29% gain for the week. PowerShares QQQ (Nasdaq: QQQ), an ETF that tracks the 100 largest Nasdaq stocks, couldn’t… Read More

The opening range breakout strategy is one of the first day trading strategies explained in detail for individual traders. In 1990, Toby Crabel wrote a book called Day Trading With Short Term Price Patterns and Opening Range Breakout. This book has been out of print for years and it is… Read More

One of the best investments in the 21st century has been professional sports teams. In 2000, there were 114 major sports teams in the United States and none of them have declined in value during the past 12 years. Only two teams, the National… Read More

One of the best investments in the 21st century has been professional sports teams. In 2000, there were 114 major sports teams in the United States and none of them have declined in value during the past 12 years. Only two teams, the National Hockey League’s Colorado Avalanche and New York Islanders, failed to gain at least 10% during that time. The biggest winner, Major League Baseball’s Minnesota Twins, increased more than 15.4% a year on average. While these teams might be among the best possible investments, few sports fans or investors can afford… Read More

One of the best investments in the 21st century has been professional sports teams. In 2000, there were 114 major sports teams in the United States and none of them have declined in value during the past 12 years. Only two teams, the National Hockey League’s Colorado Avalanche and New York Islanders, failed to gain at least 10% during that time. The biggest winner, Major League Baseball’s Minnesota Twins, increased more than 15.4% a year on average. While these teams might be among the best possible investments, few sports fans or investors can afford to buy their own team.#-ad_banner-# According to Forbes, the Manchester United European football (the sport Americans know as soccer) team is the most valuable sports team in the world. In July, the latest available data showed that the team was valued at $2.23 billion, according to Forbes, which is the leading source of publicly available information on the value of sports teams. After that valuation was published, Manchester United (NYSE: MANU) completed an IPO on the New York Stock Exchange. Now, stock and… Read More

There are two sides to every options trade since there is always a buyer and a seller in every market transaction. On options trades, the seller is said to be writing an option, and from the writer’s… Read More