Wouldn’t it be nice to know the MAXIMUM loss-potential if an options trade completely flops??? Credit spreads enable one to do so, and if used wisely, they can be great sources of consistent income. This is a GREAT strategy for the so-called ” base-hit ” investor that acquires wealth steadily, as opposed to recklessly (Continue reading “THE STOCK MARKET: Using Credit-Spread Options Contracts for Weekly and Monthly Income”
Category Archives: The Stock Market
THE STOCK MARKET: When a Put Option Contract Goes South ( Which is Good )
CHECK THIS OUT!!! This is the buying side of the game, and the maximum loss is the purchase cost of the contract ( $95.00 in this case ). An SPY ( S and P 500 Index ) put option was purchased. Each contract is worth $0.95, but options contracts are sold in groups of 100;Continue reading “THE STOCK MARKET: When a Put Option Contract Goes South ( Which is Good )”
THE STOCK MARKET: Options Contract Breakeven Price
Note: I am not an expert. This is information that perhaps should be learned prior to working with an expert. THE BUYING SIDE OF THE GAME Let’s say that a call options contract costs $0.40 cents per contract. Since options contracts are sold in groups of 100, the net purchase price of the contract isContinue reading “THE STOCK MARKET: Options Contract Breakeven Price”
MARKET ORDERS, LIMIT ORDERS, and STOP-LOSS ORDERS: What are the differences?
Investors most commonly use market orders to buy or sell shares of a company’s stock. A market order allows a desired stock trade to be executed immediately if a buyer or seller becomes available. This happens very quickly during trading hours if large numbers of investors continuously buy and/or sell a stock during market hours.Continue reading “MARKET ORDERS, LIMIT ORDERS, and STOP-LOSS ORDERS: What are the differences?”
MATHEMATICS: A Review of Percent-to-Decimal Conversions
Q: The changes in the price of a stock from one year to the next year for three consecutive years were a 20% increase, a 25% decrease, and a 60% increase. What amount was the increase in the price of the stock over the three years? (Calculator allowed) A. 38%B. 44%C. 47%D. 55% You canContinue reading “MATHEMATICS: A Review of Percent-to-Decimal Conversions”
THE STOCK MARKET: Call Options
THE MATHEMATICS OF OPTIONS TRADING : Let’s first consider a scenario where a single share of stock valued at $100.00 is purchased and subsequently sold at some later date. If this single share of stock increases in value by $6.00, a 6% profit will have been made if the stock is sold for $106.00, neglectingContinue reading “THE STOCK MARKET: Call Options”
THE STOCK MARKET: Electric Vehicle and Drone Investing.
ELECTRIC VEHICLE AND DRONE INVESTING: Only 2% of vehicles are electric and autonomous. An even smaller percentage of drones are used for delivery and logistics purposes. The following companies may benefit from these trends. Zebra Technologies ( ZBRA ): ” Some warehouses are turning to autonomous vehicles to bring merchandise to sortation and packing areas.Continue reading “THE STOCK MARKET: Electric Vehicle and Drone Investing.”
THE STOCK MARKET: Green Energy and Cryptocurrency Mining.
GREEN ENERGY COMPANIES WILL PROVIDE POWER TO BLOCKCHAIN’S CRYPTOCURRENCY MINING TECHNOLOGICAL NETWORKS. Notable companies in the clean energy space include Solar Edge ( SEDG ), Brookfield Renewable Partners ( BEP ), Array Technologies ( ARRY ), First Solar ( FSLR ), Plug Power ( PLUG ), Nextera Energy ( NEE ), Albermarle ( ALB )Continue reading “THE STOCK MARKET: Green Energy and Cryptocurrency Mining.”
THE STOCK MARKET: Selling Covered Call Options.
When the topic of options trading arises among most people, the topic discussed regards buying options in anticipation of a stock price moving in a predicted direction. If an options trader thinks the price of a stock will rise, s/he might purchase a ” call option “. A call option gives its owner the rightContinue reading “THE STOCK MARKET: Selling Covered Call Options.”
THE STOCK MARKET: The Future of 3-D Printing and Gene Therapy.
With the exception of artificial influences, the cost of goods and services are determined by supply and demand. Demand is sometimes categorized as either ” elastic ” or ” inelastic “. A good or service that has inelastic demand satisfies the basic tenets of Abraham Maslow’s hierarchy of needs . The evolution of artificially intelligent machines hasContinue reading “THE STOCK MARKET: The Future of 3-D Printing and Gene Therapy.”