Stock Options and Futures

client's future

In isolation, the current stock price tells you how much money you have to produce if you want some of it.

More important is the price of stock over time.

how many options can be selected if a frame contains 4 option buttons

There are a couple of times you'd do it.

The first is if you want to automatically lock in a gain. Let's say you have a stock you bought at 15, and you want to double your money on the investment. So you sell a call at 30 with a long expiration date...oh, maybe a year. If at any time the stock crosses the $30 threshold, you exercise the option.

You can also use short calls and long puts (sell a call, buy a put) as a hedging strategy.

And then there's the call you sell when you just want to make money by collecting premiums--you sell a call at a higher price than you think the stock will reach, and hope it doesn't go that high.

Bets on future prices.

It depends on why you're writing the call.

If you're doing it to make money by collecting the premium, and possibly the payment for the stock if the call is exercised, the tradeoff is you will make money but you might not make as much as you could have by selling the stock on the open market if the spot price of the stock when the option is exercised is higher than the strike price plus the premium.

If you're doing it to lock in your profits (or as part of a collar), there really isn't a tradeoff--whether the option is exercised or expires worthless, you still make money on the deal.

"put"

Federal Premium Ammunition belongs to a defense contractor called Alliant Techsystems; its stock symbol is ATK. Its stock sells in the $125-$140 range, and it's pretty stable.

It depends on whether the short call is covered or naked.

If you have a short covered call (you own the stocks you wrote the call on), you wouldn't hedge it--if the call gets exercised you turn over the stocks you own and call it good.

If you have a short naked call (you don't own the stock), hedge with a long call that has a strike price no more than the strike price of the short call. Maybe a few bucks less, if you can get it--if the counterparty to your short call exercises it, you exercise your long call, turn over the stock you received. Your profit will be the difference between the premiums on the calls, plus the difference between the strike prices.

As far as I know there isn't a "buy option," but a call option is an option to buy so I guess you could think of it as a "buy option."

Simply, because bondholders lack the voting rights that fully owned by stockholders. Thus, bondholders are not Affected by the company's performance and they are only eligible to receive a fixed income based on the bond agreement

Yes you can , and it is recommended that you will start trading with fake money, you will learn slowly how to trade , after you will gain enough confidence , you will than can move to real money. You must clarify with broker regarding such trade options with them.

Broker must be able to provide you this facility. Trading with fake money will gain you good experience before you start with actual money trade.

yes a minor can trade binary options using his father's name. His father can deduct losses from his investment gains and use up to $3000 of losses to offset his income.

A regular option increases it's payoff the more the underlying passes the strike point.

A binary option pays off a fixed amount based on whether the strike point was passed or pays nothing if it wasn't.

Value Added Reseller/Retailer - In Sales Industry

It is purely based on the companies wish. If they are interested in NSE they can or BSE they can.

BSE and NSE perform the same task. But why do we require both is they are like different grossery shops.

The main different between is BSE has more listed companies in it and NSE has more trade volume.

There is no any other technical reason for the companies to list in NSE or BSE...

When there isn't an active market for the forward contract. Generally, Futures contracts have a much more active open market than forward contracts and have alot more choice in terms of expiration months than forward contracts.

In all spread strategies, you only obtain the full benefits of the short legs by holding all the way to expiration. However, if the remaining extrinsic value on the short legs have decayed to almost insignificant value ($0.05), you can choose to close it out early before expiration taking into consideration the additional commissions you will be paying versus allowing to expire out of the money during expiration.

"It is possible to get more information on energy futures from news websites, news blogs, science websites, science blogs, technology websites, or technology blogs."

"Dow Jones is the company that does the trading of DJia futures. It stands for Dow Jones Industrial Average, and gives the current and future stock market ratings."

A futures broker acts as a liaison between the futures market and every-day investors, since investing in the futures market can require a great deal of paperwork and a physical visit to a trading pit. Futures brokers are licensed to buy, sell and trade on behalf of their clients, collecting a fee to do so.

You certainly should not exercise a call option when the stocks price is above the strike price. If you really want the stock, go and buy it at the market price.

For example, if you own an option with a strike price of $15 and the stock is trading at $9, why would you pay $15 to buy a stock that you could only buy or sell for $9. That would be irrational.

The short hedge is a hedging strategy used by manufacturers and producers to lock in the price of a product or commodity to be delivered some time in the future. Hence, the short hedge is also known as output hedge.

The short hedge involves taking up a short futures position while owning the underlying product or commodity to be delivered. Should the underlying commodity price fall, the gain in the value of the short futures position will be able to offset the drop in revenue from the sale of the underlying.

The DAX, or Deutscher Aktienindex, opens at 9:00 AM Central European Time (CET). Since Eastern Standard Time (EST) is typically 6 hours behind CET, the DAX opens at 3:00 AM EST. During Daylight Saving Time, when Central European Summer Time (CEST) is in effect, the DAX opens at 2:00 AM EDT.