The (business branding online) Essentials of Options Trading
No commentsBy Raul Levine
New to Options? Want to trade option? This is the first step for you.
You many know many wealthy individuals make lots of money using options and you can try too.
Stock and Bond trading strategies run the gamut from the simple ‘buy and hold forever’ to the most advanced use of technical analysis. Options trading has a similar spectrum.
Options are a contract conferring the right to buy (a call option) or sell (a put option) some underlying instrument, such as a stock or bond, at a predetermined price (the strike price) on or before a preset date (the expiration date).
So-called ‘American’ options can be exercised anytime before expiration, ‘European’ options are exercised on the expiration date. Though the history of the terms may lie in geography, the association has been lost over time. American-style options are written for stocks and bonds. The European are often written on indexes.
Options officially expire on the Saturday after the third Friday of the contract’s expiration month. Few brokers are available to the average investor on Saturday and the US exchanges are closed, making the effective expiration day the prior Friday.
With some basic terminology and mechanics out of the way, on to some basic strategies.
There are one of two choices made when selling any option. Since all have a set expiration date, the holder can keep the option until maturity or sell before then. (We’ll consider American-style only, and for simplicity focus on stocks.)
A great many investors do in fact hold until maturity and then exercise the option to trade the underlying asset. Assume the buyer purchased a call option at $2 on a stock with a strike price of $25. (Typically, options contracts are on 100 share lots.) To purchase the stock the total investment is:
($2 + $25) x 100 = $2700 (Ignoring commissions.)
This strategy makes sense provided the market price is anything above $27.
But suppose the investor speculates that the price has peaked prior to the end of the life of the option. If the price has risen above $27 but looks to be on the way down without recovering, selling now is preferred.
Now suppose the market price is below the strike price, but the option is soon to expire or the price is likely to continue downward. Under these circumstances, it may be wise to sell before the price goes even lower in order to curtail further loss. The investor can, at least, minimize the loss by using it to offset capital gains taxes.
The final basic alternative is to simply let the contract expire. Unlike futures, there’s no obligation to buy or sell the asset - only the right to do so. Depending on the premium, strike price and current market price it may represent a smaller loss to just ‘eat the premium’.
Observe that options carry the usual uncertainties associated with stocks: prices can rise or fall by unknown amounts over unpredictable time frames. But, added to that is the fact that options have - like bonds - an expiration date.
One consequence of that fact is: as time passes, the price of the option itself can change (the contracts are traded just like stocks or bonds). How much they change is influenced by both the price of the underlying stock and the amount of time left on the option.
Selling the option, not the underlying asset, is one way to offset that premium loss or even profit.
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Using Business Directories In The Health Sector (branding your business)
No commentsBy Gen Wright
For people who are newly setting up business in the medical industry, getting good business contacts is absolutely vital. Prior to setting up business, networking can help to find such contacts, but for most people a faster and more extensive resource is necessary.
This is where business directories come in. These directories list all kinds of businesses, which will include those allied to the medical industry. For example:
- Nursing homes and hospitals. Area-wise listings of nursing homes and hospitals are useful for patients as well as for allied businesses.
- Ambulance services. Listings should not only contain the serviced area, but also types of ambulances - mobile burn units, cardiac units etc
- Pharmaceuticals. Here, it is important to stay in touch with distributors of the major pharmaceutical brands. Most pharmaceutical stores deal with multiple pharm. agents - one from each major brand.
- Surgical equipment
- Orthopedic and other aids
Running any business also requires the services of insurance companies, accountants, PR personnel, HR personnel and so on. Being able to contact PR companies and recruitment agencies at short notice can dramatically decrease the time required to complete the staffing process.
The health industry also includes a number of alternative therapies, which practitioners of pharmaceutical industry also need to know about. Some of these are:
- Homeopathy
- Ayurveda
- Psychology/Counselling
- Psychoanalysis
- Reiki and aura cleansing
- Hypnosis
These methods, and many others, are sometimes recommended to people for whom pharmaceutical drugs are unadvisable or come lower in preference. Physiotherapy, too, is an essential component of the health industry.
Sometimes, it is necessary to find distributors or suppliers of some highly niche products. For example, there may be exactly one factory in the country which specializes in a particular type of prosthesis. A business directory can help people locate this factory without resorting to long, possibly fruitless searches.
Health and safety related classes can also be found on the health section of business directories. Health and safety training is necessary for at least one or two people in every workplace, and for most people engaged in potentially hazardous occupations such as construction work or childcare.
Having information such as this available online is useful for a large number of reasons. The first and most obvious advantage is speed - things that would take weeks to find out by word of mouth or letter now take seconds, or minutes. Secondly, the sheer size of the database we call the Internet is far greater than any library on earth. Thirdly, attaining visibility on the Internet is much easier, which means that startup companies can make their way into the limelight by investing only a fraction of the time they would have needed before the Internet came around.
Not only health: in all sectors of business, online directories can increase efficiency to unimaginable extents.
A UK business directory is a comprehensive resource for any businessman. Sub-directories, for example the Welsh business directory can also be accessed.
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Cant see the wood for the (corporate branding) trees
No commentsBy Davis Morris
Any business of any size will have its own set of priorities that exist to ensure that it both generates income and minimizes cost. The policies that attempt to deliver these outcomes may be extremely formal and well documented or they may just exist in somebodys head. In whatever form they do exist, they do at least exist. Whichever model is used, the reality is that the policies or practices in place may or not be sufficient to run a successful business but what is guaranteed is that some aspects of generating income will be better managed than others and likewise some cost controls will be better than others. There will undoubtedly be significant opportunity to improve management of costs in some areas. One such area that may be overlooked is that of sourcing commercial utilities such as business gas and electricity.
It is human nature to be drawn to areas where we are comfortable dealing. A sourcing expert may have spent endless hours securing truly unbeatable pricing on raw materials and shipping contracts that contribute genuine savings for the business however, these may only represent a tiny percentage improvement on already well sourced contracts. Meanwhile, the lack of interest or knowledge in commercial energy markets sees the same procurement expert overlooking a poorly priced and unsuitable contract for commercial gas and electricity supply.
At Online Energy we exist to enable you, our customer, to access the type of expert market knowledge that we possess. With this knowledge, we can identify the pricing models, suppliers and contracts that may enable your business to make the sort of savings on commercial gas and electricity that represent a significant reduction in an area of limited expertise for your business. Your business may lack the capacity to develop expert knowledge of these markets itself which is why our service is so valuable.
The Article is written by onlineenergy.co.uk providing business electricity and commercial gas and electricity Services. Visit http://www.onlineenergy.co.uk for more information on onlineenergy.co.uk Products & Services___________________________Copyright information This article is free for reproduction but must be reproduced in its entirety, including live links & this copyright statement must be included. Visit onlineenergy.co.uk for more services!
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