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Covered Call
A covered option is a financial transaction in which the holder of securities sells (or "writes") a type of financial options contract known as a "call" or a " put" against stock that they own or are shorting. The seller of a covered option receives compensation, or "premium", for this transaction, which can limit losses; however, the act of selling a covered option also limits their profit potential to the upside. One covered option is sold for every hundred shares the seller wishes to cover. A covered option constructed with a call is called a "covered call", while one constructed with a put is a "covered put". This strategy is generally considered conservative because the seller of a covered option reduces both their risk and their return. Characteristics Covered calls are bullish by nature, while covered puts are bearish. The payoff from selling a covered call is identical to selling a short naked put. Both variants are a short implied volatility strategy. Covered calls c ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Short Put Option
Short may refer to: Places * Short (crater), a lunar impact crater on the near side of the Moon * Short, Mississippi, an unincorporated community * Short, Oklahoma, a census-designated place People * Short (surname) * List of people known as the Short Arts, entertainment, and media * Short film, a cinema format (also called film short or short subject) * Short story, prose generally readable in one sitting * ''The Short-Timers'', a 1979 semi-autobiographical novel by Gustav Hasford, about military short-timers in Vietnam Brands and enterprises * Short Brothers, a British aerospace company * Short Brothers of Sunderland, former English shipbuilder Computing and technology * Short circuit, an accidental connection between two nodes of an electrical circuit * Short integer, a computer datatype Finance * Short (finance), stock-trading position * Short snorter, a banknote signed by fellow travelers, common during World War II Foodstuffs * Short pastry, one which is rich in butt ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Naked Put
A naked option or uncovered option is an options contract where the option writer (i.e., the seller) does not hold the underlying security position to cover the contract in case of assignment (like in a covered option). Nor does the seller hold any option of the same class on the same underlying security that could protect against potential losses (like in an options spread). A naked option involving a "call" is called a "naked call" or "uncovered call", while one involving a " put" is a "naked put" or "uncovered put". The naked option is one of riskiest options strategies, and therefore most brokers restrict them to only those traders that have the highest options level approval and have a margin account. Naked option are attractive because the seller receives the premium cost of the option without buying a corresponding position to hedge against potential losses. In the case of a naked put, the seller hopes that the underlying equity or stock price stays the same or rises. In t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
The Wall Street Journal
''The Wall Street Journal'' is an American business-focused, international daily newspaper based in New York City, with international editions also available in Chinese and Japanese. The ''Journal'', along with its Asian editions, is published six days a week by Dow Jones & Company, a division of News Corp. The newspaper is published in the broadsheet format and online. The ''Journal'' has been printed continuously since its inception on July 8, 1889, by Charles Dow, Edward Jones, and Charles Bergstresser. The ''Journal'' is regarded as a newspaper of record, particularly in terms of business and financial news. The newspaper has won 38 Pulitzer Prizes, the most recent in 2019. ''The Wall Street Journal'' is one of the largest newspapers in the United States by circulation, with a circulation of about 2.834million copies (including nearly 1,829,000 digital sales) compared with ''USA Today''s 1.7million. The ''Journal'' publishes the luxury news and lifestyle magazine ' ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Thomas Schneeweis
Thomas Schneeweis, professor of finance at the School of Management, University of Massachusetts Amherst, Amherst, MA, is also the director of the Center for International Securities and Derivatives Markets there. He is president of Alternative Investment Analytics, LLC, which he established in 2005, as a consultancy in the fields of multi-advisor hedge fund creation and asset allocation. He is a frequent speaker at academic and financial-services industry events and is often quoted press (i.e. the Financial Times, Business Week and the Wall Street Journal ''The Wall Street Journal'' is an American business-focused, international daily newspaper based in New York City, with international editions also available in Chinese and Japanese. The ''Journal'', along with its Asian editions, is published .... References External links {{DEFAULTSORT:Schneeweis, Thomas University of Massachusetts Amherst faculty Living people Year of birth missing (living people) ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
The Journal Of Investing
''The Journal of Investing'' is a quarterly peer-reviewed academic journal that covers research on investment management, asset allocation, performance measurement, benchmarking, mutual funds, investing strategies such as 130/30 funds, global allocation, and practical investment ideas and portfolio strategies for the institutional buy-side such as pension funds. It is published by Portfolio Management Research and the editor-in-chief is Brian R. Bruce (Hillcrest Asset Management). Reception The School of Management of Cranfield University ranked the journal C (on a scale of A to D) in an internal document recommending outlets for management and business research to their faculty. Similarly, a 2011 ranking of finance journals by Cranfield classed the journal 2 (on a scale of 1 to 4, with 4 being the highest). Abstracting and indexing The journal is abstracted and indexed in EBSCO databases, Emerging Sources Citation Index, ProQuest databases, and Scopus Scopus is Elsevier's ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Married Put
A protective option or married option is a financial transaction in which the holder of securities buys a type of financial options contract known as a "call" or a " put" against stock that they own or are shorting. The buyer of a protective option pays compensation, or "premium", for this transaction, which can limit losses on their stock position. One protective option is purchased for every hundred shares the buyer wishes to cover. A protective option constructed with a put to cover shares of stock that an investor owns is called a protective put or married put, while one constructed with a call to cover shorted stock is a protective call or married call. In equilibrium, a protective put will have the same net payoff as merely buying a call option, and a protective call will have the same net payoff as merely buying a put option. A protective option could be used instead of a stop-loss order to limit losses on a stock position, especially in a fast-moving market. Although buye ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Moneyness
In finance Finance is the study and discipline of money, currency and capital assets. It is related to, but not synonymous with economics, the study of production, distribution, and consumption of money, assets, goods and services (the discipline of fina ..., moneyness is the relative position of the current price (or future price) of an underlying Financial asset, asset (e.g., a stock) with respect to the strike price of a derivative (finance), derivative, most commonly a call option or a put option. Moneyness is firstly a three-fold classification: * If the derivative would have positive intrinsic value (finance), intrinsic value if it were to Expiration (options), expire today, it is said to be in the money; * If the derivative would be worthless if expiring with the underlying at its current price, it is said to be out of the money; * And if the current underlying price and strike price are equal, the derivative is said to be at the money. There are two slightly differe ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Implied Volatility
In financial mathematics, the implied volatility (IV) of an option contract is that value of the volatility of the underlying instrument which, when input in an option pricing model (such as Black–Scholes), will return a theoretical value equal to the current market price of said option. A non-option financial instrument that has embedded optionality, such as an interest rate cap, can also have an implied volatility. Implied volatility, a forward-looking and subjective measure, differs from historical volatility because the latter is calculated from known past returns of a security. To understand where implied volatility stands in terms of the underlying, implied volatility rank is used to understand its implied volatility from a one-year high and low IV. Motivation An option pricing model, such as Black–Scholes, uses a variety of inputs to derive a theoretical value for an option. Inputs to pricing models vary depending on the type of option being priced and the pricing m ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
McGraw Hill
McGraw Hill is an American educational publishing company and one of the "big three" educational publishers that publishes educational content, software, and services for pre-K through postgraduate education. The company also publishes reference and trade publications for the medical, business, and engineering professions. McGraw Hill operates in 28 countries, has about 4,000 employees globally, and offers products and services to about 140 countries in about 60 languages. Formerly a division of The McGraw Hill Companies (later renamed McGraw Hill Financial, now S&P Global), McGraw Hill Education was divested and acquired by Apollo Global Management in March 2013 for $2.4 billion in cash. McGraw Hill was sold in 2021 to Platinum Equity for $4.5 billion. Corporate History McGraw Hill was founded in 1888 when James H. McGraw, co-founder of the company, purchased the ''American Journal of Railway Appliances''. He continued to add further publications, eventually establishing The ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Market Sentiment
Market sentiment, also known as investor attention, is the general prevailing attitude of investors as to anticipated price development in a market. This attitude is the accumulation of a variety of fundamental and technical factors, including price history, economic reports, seasonal factors, and national and world events. If investors expect upward price movement in the stock market, the sentiment is said to be ''bullish''. On the contrary, if the market sentiment is ''bearish'', most investors expect downward price movement. Market participants who maintain a static sentiment, regardless of market conditions, are described as ''permabulls'' and ''permabears'' respectively. Market sentiment is usually considered as a contrarian indicator: what most people expect is a good thing to bet against. Market sentiment is used because it is believed to be a good predictor of market moves, especially when it is more extreme. Very bearish sentiment is usually followed by the market going u ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Short Call Option
Short may refer to: Places * Short (crater), a lunar impact crater on the near side of the Moon * Short, Mississippi, an unincorporated community * Short, Oklahoma, a census-designated place People * Short (surname) * List of people known as the Short Arts, entertainment, and media * Short film, a cinema format (also called film short or short subject) * Short story, prose generally readable in one sitting * ''The Short-Timers'', a 1979 semi-autobiographical novel by Gustav Hasford, about military short-timers in Vietnam Brands and enterprises * Short Brothers, a British aerospace company * Short Brothers of Sunderland, former English shipbuilder Computing and technology * Short circuit, an accidental connection between two nodes of an electrical circuit * Short integer, a computer datatype Finance * Short (finance), stock-trading position * Short snorter, a banknote signed by fellow travelers, common during World War II Foodstuffs * Short pastry, one which is rich in butte ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Tom Sosnoff
Tom Sosnoff (born March 6, 1957) is an entrepreneur, options trader, co-founder of Thinkorswim and tastytrade, and founder of Dough, Inc. He was senior vice president of trading and strategic initiatives at TD Ameritrade. Sosnoff promotes option trading as an important financial strategy for the individual investor. He has promoted this view by founding an online financial network, tastytrade, and by developing software products to support individual investor options trading. Early life and education Sosnoff, a native New Yorker, got his first job as a caddie at the age of 13. In 1979, Sosnoff received a BA degree in political science from University at Albany, SUNY and immediately began working for Drexel Burnham Lambert. Career Starting in the early 1980s, Sosnoff, through the Sosnoff Sheridan Group, was a lead market maker at the Chicago Board Options Exchange. By 1999, Sosnoff believed that option trading would largely move online and that individual investors would become in ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
