Wednesday, May 22nd, 2019

Options in a Stock Split

What happens when you have purchased calls on XYZ Company and their stock splits? Options in a stock split also split, so to speak. Many traders believe that the resulting bump in stock price that occurs with a split is beneficial to those who have purchased call options or sold put options. [...]

Options, Dividends, and Volatility

There is an excellent discussion of specific options trades in the current online issue of Forbes (http://www.forbes.com/sites/stockoptionschannel/2013/11/11/interesting-april-2014-stock-options-for-cisco-systems/). The article discusses put and call options for April 2014 for Cisco (CSCO). At issue are the price of the put option or call option, the dividend paid by Cisco, and potential market volatility. [...]

The Leverage of Trading Options

The leverage of trading options is perhaps its greatest attraction. With the simple investment of a premium a trader can nail down a price at which he or she will be able to buy or sell an equity, no matter high or low the price may go. The leverage of buying  and [...]

Options Trading Volume

Options trading volume varies with the belief that prices of underlying equities will fluctuate. For example, institutions that are writing puts in options trading may not believe that a stock or commodity price will fall but those buying puts do. It is not the change in price of the underlying that drives interest and increases [...]

Trading Options on a Government Shutdown

Times when the stock market is volatile are commonly good times for stock options trading. Now as political infighting in Washington drives us closer to a government shutdown the markets are volatile. Buying puts or calls on stocks may be quite profitable. The rationale for trading options on a government [...]

Timing Options Trades

Timing options trades is to a degree a contradiction in terms. After all one buys options in order to have the opportunity to buy or sell an underlying equity at the time of one’s own choosing. However, an options series has a starting date and it has an expiration date. If you [...]

Trading Agricultural Futures Options

Producing and buying agricultural products can be risky. Prices can rise rapidly if there is a threat to supply and fall equally fast if there is an overabundance. People need to eat so there is a fairly constant demand. A constant concern for production is the weather. The threat of drought in the American Great Plains, the Ukraine, Brazil, or Argentina can drive up soybean, corn, wheat, and cattle prices. Excellent weather across North America is predictive of abundant harvests of wheat from Texas to Alberta and a fall in wheat prices. Trading agricultural futures options is a common way to hedge risk for both producers and buyers of agricultural products. A farm co-operative may buy calls on corn futures whereas a meat processor may buy calls on pork bellies. They both buy options to hedge risk .

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 [...]

Leasing Cell Tower Sites

A profitable business opportunity is leasing cell tower sites. Owners of property such as tall buildings or high altitude terrain may be approached by cell phone companies. Phone companies need to place their signal relay stations in high locations. Because of the large number of sites required for a cell phone [...]

Buy Cell Tower Leases

A potentially very profitable business venture is to buy cell tower leases. Cell phones are part and parcel of everyday life. The relay points in the cell phone network, the base receiver stations, are essential to smooth functioning of the mobile phone network. These base receiver stations are located at strategically [...]

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