Friday, November 24th, 2017

Interest Rate Driven Oil Futures Options

Volatility has risen for options on oil futures. Usually this has to do with basic supply and demand issues and associated market uncertainty. This time it has to do with interest rate driven oil futures options. In short the Federal Reserve has been buying $85 Billion in treasury bills every month. This has served to keep interest rates low and help with the economic recovery in the USA. However, the Fed will now keep this up indefinitely. According to recent comments by Fed chairman Bernanke, the Fed will gradually ease off of this policy as the economy improves. As is often the case word or two by the Fed chairman can rile the markets. In order to make a profitable option trade , a trader needs a glimpse of the future. When we have interest rate driven oil futures options traders look to the Fed for a hint of where interest rates and the economy are going.

Invest in Cell Site Real Estate

There is an attractive real estate investment opportunity that many are not aware of. This is the business of leasing cell tower sites . According to Cell Tower Gold there are well over a third of a million opportunities to invest in cell site real estate in the USA. These properties come with a constant and guaranteed income stream, the cell tower lease. There are so many of these investment opportunities because phone companies lease well over ninety percent of cell sites from the original property owner. However, many of these owners are approachable. A profitable approach when you invest in cell site real estate is to find a property in need of a rehab, purchase it, fix it up, and resell for a handsome profit. Read on for more info about how you can invest in cell site real estate.

An Unconventional Guide to Options Trading

If you are new to trading options and are simply wondering how stock options work , here is an unconventional guide to options trading. We are not going to tell about how you earn tons of money trading options because many people do not. In fact, many people and institutions trade options in order [...]

Cell Tower Site Lease Security Option

This article has to do with profitable cell tower lease investing. The cell tower site lease security option refers to one of the profitable ways to create cell tower lease deals. However, it could also refer to creating an over the counter options on securities derived from collections of cell tower leases. There are several ways to profit from cell site investments . First let us look at the size and shape of the cell tower lease market.

Hundreds of Thousands of Cell Sites

There are hundreds of thousands of cell sites in the USA and phone companies own about seven percent of these. They lease the rest. Cell Tower Gold estimates that there are roughly 370,000 that are amenable to cell site lease investment. In other words the current owner is willing to sell the lease and perhaps the underlying property. The current lease owner may be in financial straits due to a failing business, in failing health, or nearing retirement. To profit from these situations find cell sites, talk to the owners, create deals that profit all concerned, and collect these leases. Then you can simply collect lease payments or you can sell to another buyer and pocket your profits. Or you can use the cell tower site lease security option.

Understanding Underlying Equities

July 5, 2013 by Jim Walker  
Filed under Options Trading Tips

When trading options, trading futures, buying convertible bonds, engaging in equity swaps, or trading exchange traded derivatives, understanding underlying equities is basic to success. The market in the overlying option, future, etc. is dependent upon the market in underlying equity. For example, when there is a stock split, a company merges with another company, or a company makes an unusually large one time cash distribution these events fundamentally change the value of the over lying option. Understanding underlying equities is essential to understanding options trading. Asking what is an option worth is basically asking the value and promise of the underlying equity.

The underlying security of an option is usually common stock but it can be American Depository Receipts (ADR’s), preferred stock, or other instruments. In the event of a merger or acquisition the underlying equity may change from common stock to another instrument. Different kinds of options trading will be affected differently in the event of a merger. For example, in a merger some shareholders may elect to receive cash and others may elect to receive shares of the surviving company. If a trader has engaged in a long straddle options strategy in the company that is being merged into the other he has the option and right to exercise the call option that is half of his strategy. This will allow him to buy the stock if he exercises prior to the date at which shareholders must choose cash or the surviving stock. Understanding the underlying equities in this situation will allow the trader to profit if having stock in the merged company is profitable. It will also allow the trader to let the call option expire unexercised if exercising would be a losing proposition.

Options Trading on the American Economic Recovery

When the chairman of the Federal Reserve said that the Fed was going to phase out its stimulus program stocks fell. Then everyone seems to have remembered that Mr. Bernanke said that the Fed would phase out its stimulus program based on a continued economic recovery and stocks rose again. Given the uncertainty that often [...]