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What does 'call option' mean?
If you own a Call Option, you have the right (not the obligation) to purchase a security at an agreed-upon price from the seller of the option. Buying a call option means you are bullish on the security.
For example, an investor may buy an August 2017 call on stock XYZ for $50/share (strike price). This means that the owner of this call option has the ability to buy XYZ on the expiration date (August) for $50/share.
If the stock is trading higher, say at $75/share by that time, the investor made a good decision! If the stock is trading for less than $50, the investor won’t gain from exercising the option. In this case, the only loss incurred is the cost of the option contract.
The quote for a call option contract will state the expiration month, the strike price at which the buyer can purchase shares regardless of market price, and the premium price to be paid for the contract. All this is quoted in terms of one share, but the contract purchases 100 shares.
Within the expiration month, options typically expire the 3rd Friday of the month at 4PM. The call option is the most common type of option traded.
What is secondary market?
The secondary markets are where most trading goes on today, where the trades are made investor-to-investor using shares
What is Paid-Up Capital?
Paid-up capital is the money (‘capital’) collected by a company from issuing shares of their stock
What Is Market Capitalization?
Market capitalization is a measure of a company’s size, in terms of the value of its total outstanding shares
What kind of venture capital funds exist?
There are large venture capital firms, which might invest in any start-up company if they think the company has potential
What’s a 403(b) Plan?
A 403(b) Plan is essentially a 401(k) for publicly-funded institutions such as public schools, universities, certain hospitals, and non-profit organizations.
What Investment Choices Do I Have in My IRA?
IRA is a tax designation which can be placed on an account at various institutions that offer a list of investment options
What is the Nikkei 225?
The “Nikkei” 225 is the most referenced index for measuring Japanese stocks. It is to Japan what the DIJA is to the U.S.
What is the gordon growth model?
The Gordon Growth Model is also known as the dividend discount model (DDM). It is a model for pricing a stock
How to use Andrew's Pitchfork in trading
Alan Andrews designed Andrew’s Pitchfork as a way to define a trend with support and resistance lines around a median line
What were the Biggest Single Day Market Moves?
The largest single-day point gain occurred on October 13, 2008 and, the largest percentage gain was on March 15, 1933