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Investing Articles: Stocks and Options



A selection of Investing Articles on stocks, options, futures, etc.

-Choosing an Investment
When you choose to invest your money, the final decisions are yours alone. The risk of the investment also is yours. Before you invest, consider your ...
-Day Trading Risk
Day Trading: Your Dollars at Risk by the SEC Day traders rapidly buy and sell stocks throughout the day in ...
-Understanding Stock Dividends
A dividend's yield -- the percentage of return earned strictly from dividends -- is equal to total dividends paid in the last 12 months divided by the current stock price. So if ...
-Online Investment Scams
Avoiding Online Investment Scams: Tips for Investors by the SEC You should be skeptical of investment opportunities you learn about through ...
-Court allows broader meaning of insider trading
USA Today Article WASHINGTON - People can be prosecuted for using inside information to buy or sell a company's stock even if they don't work for the company or owe it any legal duty, the ...
-What Higher Interest Rates Mean to You
To no one's surprise the Federal Reserve Board (the Fed) hiked interest rates again this week in an effort to cool off the economy. The last three rate hikes haven't had much effect, but maybe ...
-Stocks: What Types of Orders You Can Place
The market order is probably the most common. When you place an order at the market, you are telling the broker to buy or sell the stock at the best possible price at that time. A market order ...
-Preferred Stock
People invest in preferred stock for slightly different reasons that people in invest in common stock. Unlike common stock, preferred stock doesn't fluctuate in price very much. Since ...
-The Short Sale Of Stock
The short sale of stock is a bet that the price of that stock will decline. Here are the mechanics. You decide that XYZ at a price of $110 is at or near its peak. You feel that XYZ will decline in ...
-Stock Warrants, Options--Terms--Consideration
Subject to any provisions in the articles of incorporation, every corporation may create and issue, whether or not in connection with the issue and sale of any shares of stock or other securities ...
-Street Name - Taking Possession of Stock Certificates
An individual has three choices of possession when purchasing stock. The company (issuer) can mail the stock certificates to the individual where they can be kept at home or in a safe deposit box; ...
-Owning A Stock And Buying A Put
If an investor owns the underlying security and buys a put option, he has created a position where he has limited downside risk in the underlying security until the option expires. This is a ...
-Futures & Options: Covered Calls
Purchasing shares of stock in a company while simultaneously selling call options on the same stock is a type of transaction known as a covered call. The purchasing of covered calls is ...
-Futures & Options: Covered Leaps
The second strategy is actually an extension or special case of the first. The objective here is to identify profitable covered call opportunities in which the options are LEAPS&...
-Futures & Options: Buying Calls and Puts
Buying Calls Buying a call is the most basic options trading strategy that you can utilize when expecting an upwards price movement in a particular stock. There ...
-Futures & Options: Volatility
Volatility is the key to trading options effectively. This is because volatility is a primary determinant of an option's price. So what is volatility? Volatility is a measure of ...
-Futures & Options: Zero Collar
Another strategy, which is called the zero-collar, involves buying a put with a strike price slightly below the current price of a held stock and selling a call with a strike price ...
-Futures & Options: Writing a Covered Call
Writing a covered call consists of the sale of a call while simultaneously owning the underlying security. The seller of the call (the writer) is usually negative or neutral on the direction of ...
-Glossary of Options And Futures Related Terms: A-B
American-Style Option An option contract that may be exercised at any time between the date of purchase and the expiration date. Most exchange-traded options in the ...
-Glossary of Options And Futures Related Terms: C
Capped-Style Option A capped option is an option with an established profit cap. The cap price is equal to the option's strike price plus a cap interval for a call ...
-Glossary of Options And Futures Related Terms: D-E
Day Order An order that is placed for execution during only one trading session. If the order cannot be executed that day, it is automatically cancelled. ...
-Glossary of Options And Futures Related Terms: F-I
Floor Broker An exchange member who is paid a fee for executing orders for Clearing Members or their customers. A Floor Broker executing orders must be licensed by the ...
-Glossary of Options And Futures Related Terms: L-M
LEAPS Long-Term Equity Anticipation Securities are long-term stock or index options. LEAPS are available in two types, calls and puts. They have expiration dates up to ...
-Glossary of Options And Futures Related Terms: N-O
Nearby The nearest active trading month of a futures or options on futures contract. It is also referred to as lead month. ...
-Glossary of Options And Futures Related Terms: P-R
Performance Bond Call Previously referred to as Margin Call. A demand for additional funds because of adverse price movement. Premium (options)...
-Glossary of Options And Futures Related Terms: S
Scalp To trade for small gains. Scalping normally involves establishing and liquidating a position quickly, usually within the same day, hour or even just a few ...
-Glossary of Options And Futures Related Terms: T-V
Time value The portion of the option premium that is attributable to the amount of time remaining until the expiration of the option contract. Time value is whatever ...









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