Investing lastest articles submited 
Records: 511-540 from 1035
IRA Catch Up Limits Help Baby BoomersFully funding your IRA should be one of your top investment priorities. Keep in mind that IRAs offer two major benefits: tax advantages and investment freedom. Build Retirement Savings - But Don't Forget IncomeAre you between the ages of 55 and 64? If so, you belong to a peer group that is apparently quite concerned about saving for retirement - but not at all sure how to convert those savings into a steady income stream. If this describes your situation, you will need to take action. Tips to Smart InvestingIf you can't rely on your own research, or if you don't have time to do the research, you might as well make your investment decisions based on tips from that smart guy at work. No, no, I'm just kidding. Tips are for restaurants. The Basics of Investing & MoneyThe first important concept for you to accept is that compound interest from your bank is for suckers. Compound earnings from your investments will make you rich. Got that? Okay, let's move on. Fraud-High Yield And Low Risk Are A Warning SignHigh yield and low risk are two attributes of an investment that investors want. Are they really available? Yes they are, but watch out. Treasury Investments/Securities – Treasury Bills, Notes, Bonds, Savings Bonds, TIPS And STRIPSThis article describes the various type of treasury investments - bills, notes, bonds, TIPS and STRIPS. Find out more ... How to Avoid Ruining RetirementSo often it is believed that wealth is only attainable by those with large incomes. Those with smaller incomes may not put anything aside, assuming such small savings won't make enough of a difference in the long run. In my experience in the financial services industry, there were several times when I would help an elementary school teacher or janitor with their sizeable 403(b) account. Why does the idea of investment scares us?Learn how many kinds of investments are and how they can help you. Stay the Course with Global InvestingYou need to stay the course with a balanced global portfolio that seeks growth and value around the world. The global pull back in equity markets has rattled some investors and perhaps made them think twice about a global approach to investing.Let’s put things in perspective. Even with the haircut in international markets, here are the numbers.During the last 12 months ending last Friday, eleven country-specific iShares that have more than tripled the return of the S&P 500 index: Vertical Spreads - A Recap with Special InsightsVertical spreads can have various names. The same vertical spread could be called several different things by several different people. We have used two terms only: vertical call spread and vertical put spread. Vertical Spreads - An Imaginary Spread ScenarioLet's put together what we've been talking about, develop an imaginary spread scenario and set it in real life events. In October, let’s say that you begin to hear about IJK stock... Vertical Spreads - Time Decay and Volatility Trading OpportunitiesWhen vertical spreads are mentioned, they quite often come with monickers such as "bull" and "bear." This lends most to think of vertical spreads as directional plays which is true. However, vertical spreads can be used to take advantage of two other potential trading opportunities – time decay and volatility movement. Vertical Spreads - Getting Out or Rolling the PositionThe selection and management of a vertical spread are only two-thirds of the game. Closing out, rolling or morphing the position has to be analyzed and executed with the same due diligence as was used in the selection and management processes. Vertical Spreads - Factors that Affect Spread PricingThe determination of pricing as described above works in most cases but please be aware that this assumes that the implied volatility in both the 35 and 40 calls is the same. Most of the time, these two options will have a slightly different implied volatility. Vertical Spreads - Spread PricesDuring the life of a vertical call spread, the spread will trade between its minimum and maximum values (between 0 and the difference between the two strikes). In the case of a vertical call spread, the spread will trade closer to zero when the stock trades closer to or lower than the lower strike price. Vertical Spreads - Cost Relationship between Corresponding Put Spreads and Call SpreadsWe have demonstrated that vertical spreads have intrinsic value, and that we can roughly determine their value by comparing stock price to strike prices. There is another relationship that can help investors determine value. Vertical Spreads - Vertical Call Spread and Vertical Put Spread ValueAny spread that has intrinsic value is considered in-the-money. How can you identify the value of a vertical call spread or a vertical put spread? Vertical Spreads - Intrinsic Value and the Vertical SpreadIn looking at vertical spreads, an investor must take note of the fact that vertical spreads have an intrinsic value. This means that a vertical spread can be considered to be "in-the-money." Vertical Spreads - Construction of a Vertical SpreadA vertical spread is constructed by the purchase of a call (or put) and the sale of a call (or put) in the same stock and in the same month. The only difference between the two options is the strike price. Vertical SpreadsThere are two main types of vertical spreads. There is the vertical call spread and the vertical put spread. Each spread allows you to do two things. First, you can buy it, making you long the vertical spread. Time / Diagonal Spreads - Closing the Time Spread PositionIt is important to remember that the time spread will leave you with several potential positions that can be altered by other options or stock in numerous ways. There are a number of decisions you must make to clarify your understanding and goals. Time / Diagonal Spreads - Rolling the Position, Call Spread and Put Spreads - Rolling the PositionTime spreads are unlike all the other strategies we have discussed before when we talk about rolling or continuing the position. In other strategies, the option component is limited to a single month. At expiration, the position disappears. It either transforms into stock or expires worthless leaving you with no option position. Mike Schaeffer's Favorite CBM CompanyCoalbed Methane newsletter guru Mike Schaeffer announced his favorite coalbed methane stock recommendation in the May 23rd newsletter, Energy and Capital. He called his favorite a "dreamboat company," and believes it is severely undervalued. Time / Diagonal Spreads - Seller Risk / RewardThe seller of a time spread buys the nearer month option and sells the outer-month option in a one to one ratio. In order to profit from the sale of the time spread, the seller is looking basically for two things... Time / Diagonal Spreads - Buyer Risk / RewardLike most trades, time spreads have a maximum loss for the buyer. As a buyer, you can only lose what you have spent. If you paid $1.00 for the spread then your maximum potential loss is that $1.00. Time / Diagonal Spreads - How to Calculate the Volatility of the SpreadTo be able to calculate the volatility of the spread, we must equalize the volatilities of the individual options. This article has an example of how to calculate the volatility of the spread. Time / Diagonal Spreads - Understanding and Properly Calculating Accurate Volatility LevelsUnderstanding and properly calculating accurate volatility levels is imperative for spread traders. In order to get accurate volatility levels, you must first determine a base volatility for the two options involved in the spread. Time / Diagonal Spreads - Vega Values for Calls and the Corresponding PutsThe chart below shows the vega values for calls and the corresponding puts. As you can see, these values match up in every instance. Time / Diagonal Spreads - Effects of Volatility on the Time SpreadWhen purchasing a time spread, the investor should pay attention
not only to the movement of the stock price but especially to
the movement of volatility. Time / Diagonal Spreads - Effects of Stock Price on the Time SpreadThe price of a time spread will fluctuate with movements in stock price. A time spread will be at its widest when the stock price and the strike price of the spread are identical (i.e. at-the-money).Records: 511-540 from 1035