Archive for February, 2009

If I buy a call option and the stock splits and the price per share goes down with the split, how does that af

fect my call position? It would seem that the option would not move with the split and I would be farther from an in the money position if the stock splits.
The first answer is almost correct. If you had an option with a strike price of $50 and the stock split 2 for [...]

How to Turn Ebay ® Browsers Into Buyers: a Call to Action

During my time as an eBay ® consultant , people have asked me many questions. Often, people ask questions that are contrary to the success of their business, and it’s my job to redirect their thoughts in a more appropriate direction.
Consider the following question: “I have all of my items listed and I’m not [...]

I need to use a call option on a stock but don't know how?

I was thinking of buying a stock online. The stock currently stands at $50 per share. But it might rise in the after hours. I do not want to pay more than $52 per share in case the stock price rises. So if I specify my call option online at $52, [...]

Call Center Management Costa Rica

http://callcentermanagementcostarica.com/page_builder.php?page=index.php
Call centers in Costa Rica have been known to expand their agent capacity to a few thousand seats at certain call centers throughout Central America. Advanced and up-to-date technology has enabled call center IT departments to take advantage of call center management software ensuring complete control over the thousands of employees and their work [...]

The Anatomy of an Option

Any time you read anything about options, it is incumbent upon the author to provide a brief introduction. This article is no exception.
Let’s suppose you are house shopping, but are waiting to hear whether or not the job you are hoping for is actually going to be offered. You find the perfect house, but you [...]

Covered Call Writing Using the Buy Write Strategy

The buy write covered call is a slightly different strategy from the over write strategy, although the mechanics are identical in terms of outcome and follow on actions. The difference is in the strike price you choose and the period. In a previous article using the over write strategy, we looked at an example using [...]

Some Fundamentals of Option Trading

Option trading is an ever increasingly popular form of investment. The wide spread use of online option trading has led to many newcomers to these risky, but potentially profitable opportunities. The following is a review of some of the fundamentals of option trading.
The Future
options trading is sometimes known as “future trading”. In the commodity [...]

How does a "close to sell a Call option" trade get calculated?

I have been thinking about trading options, but don’t feel comfortable to start it unless someone can help me clarify an issue as follows. (Data used in the following example are real data I collected in the recent past.) On 8/16, premium for Jan 12.5 TLAB Call was 0.25. On 8/31, its [...]

Making Money From Option Trading With Implied Volatility – Part 1

Traders who are new to option trading sometimes hear the term ‘implied volatility’ thrown around by experienced option traders. Traders who have been training for while realize the importance of implied volatility and how it can affect their profitability. In this article, I would like to give an explanation for what implied volatility is, how [...]

Covered Call Writing Using the Over Write Strategy

Writing covered calls is an excellent way to use options in a low risk way, to generate additional income on your existing portfolio of shares. If you buy shares at the same time that you write the calls then the transaction is known as a buy-write. If you write calls on shares you already hold [...]