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Premium is the total amount of money (price) you pay for an option. So, if the Microsoft (MSFT) May 65 calls cost you $1.50 then the $1.50 is the amount of the premium of the option. The total price of an option (premium) consists of two components. Those two components are intrinsic value and extrinsic value. Parity - When we discuss parity in terms of options, we say that parity is the amount by which an option is in the money. Related Article Tags: , , , , , ,
This is an article that discusses the differences in trades that are in the money, at the money and out of the money. Related Article Tags: , ,
A put option is a contract between two parties (a buyer and a seller) whereby the buyer acquires the right but not the obligation to sell a specified stock or other underlying instrument at a specified price by a specified date. The seller of a put option assumes the obligation of taking delivery of the stock or other underlying instrument from the buyer should the buyer wish to exercise his option. Related Article Tags: , , , , , ,
Volatility is defined as the degree to which the price of a stock or other underlying instrument tends to move or fluctuate over a period of time. Implied Volatility is a value derived from the option's price. It indicated what the market's perception of the volatility of the stock or underlying will be during the future life of the contract. Related Article Tags: , , , , , ,
Microsoft is a difficult situation for me to evaluate. I think the company still has a lot of growth ahead in some areas. But, that depends on where management wants to take it. Related Article Tags: , , , , , , , , , , ,
Cramer is currently favouring a buy into Microsoft (MSFT), believing the bad times are behind and it's back on the up. An analysis of the share prices over the past few months shows that Microsoft is over its lowest points ($21.51) and gradually climbing (currently $24.40). One could argue that Cramer is right.
However... Related Article Tags: , , ,
Traders in CFD's have a wide choice of indices, including the Nasdaq, Dow Jones and S&P500. Each index is calculated differently, and it is therefore worth tracking them independently.
Stock quotes present priceless information about the price of a stock at a specified time. Traders generally use quotes to find out about stock market changes and to make trades. Stock quotes are available from a multitude of sources such as Yahoo! Finance or MSN Money. Related Article Tags: , , , , ,
Stock market investments present one way for an individual to make money even with a minimum investment. However, several items have to be weighed thoroughly before one pursues such an investment. There are several options a potential investor has to buy stock, or partial ownership in a company. Probably the most popular is the buy-and-hold approach. Under this strategy, an investor simply holds on to shares regardless of stock price. Related Article Tags: , , , , ,
Be prepared when Windows XP fail to boot by using your Windows XP Recovery Kit to restore Windows fast.Complete backup of your files,and re-installing Windows are part of this kit. Related Article Tags: , , , , , , ,
As the Dow flirts with a new high (and the financial media tests everyone's patience), it's worth remembering how far the average investor has fallen and why.
A value investor discusses the risk involved in buying stock in an inflexible enterprise. He uses several examples of large corporations and the problems they have encountered in recent years to illustrate his point. Related Article Tags: , , , , , , , , , , ,
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