This is how Assignment and Exercise of Option Works...

Let’s say trader Joe buys AAPL June 90 calls and AAPL is trading at $93.50. When AAPL is trading at $93.50 trader Joe wishes to exercise his right to buy the call at $90 (his strike price) per share. Trader Joe will inform his broker ‘A’ that he wishes to exercise his right to buy AAPL shares at $90 per share. Broker ‘A’ will then instruct his administrative personnel to handle the exercise for trader Joe. The administrative personnel will contact Options Clearing Corporation that they wish to exercise one contract of June 90 call. Options Clearing Corporation then checks their records to see which brokerage firms are short the June 90 call and has not covered their positions. Options Clearing Corporation then randomly selects one brokerage firm (let’s say broker ‘B’) that is short at least one contract of June 90 call. Options Clearing Corporation then notifies broker ‘B’ that they are assigned one June 90 call contract. Broker ‘B’ then must deliver 100 shares of AAPL at $90 per share to broker ‘A’ that exercised the option. Broker ‘B’ then randomly selects one of his customers who are short June 90 calls of AAPL and informs his customer that he has been assigned June 90 call of AAPL and must deliver 100 shares of AAPL. This completes the process of exercise or assignment. However, the trader who must deliver 100 shares of AAPL must either have 100 shares in his account or he has to buy 100 shares of AAPL at then prevailing price which would be above $90 per share. If he does not have AAPL shares in his account and does not want to buy AAPL shares at the prevailing price then he will instruct his broker that he wishes...

Formación en trading forex para el trader principiante...

Si te consideras un principiante en el trading, seguramente sea porque reconozcas que todavía te faltan cosas que aprender. Si eres prudente, lo cierto es que esta sensación nunca te abandonará, porque los mercados evolucionan continuamente y lo que es cierto hoy, puede no serlo mañana. Por eso aprender nunca está de más. Si quieres ampliar tus conocimientos, sigue leyendo, ya que hoy vamos a explicar algunos conceptos básicos sobre las bandas de Bollinger. Las bandas de Bollinger son obra de John Bollinger y sirven para identificar si el precio de un activo es alto o bajo en términos relativos. Se trata de un gráfico que se superpone sobre el gráfico del precio y consiste en tres líneas. La primera línea que se calcula es la central. Para formarla se calculan las medias móviles del precio en 20 días. Las otras dos líneas se obtienen sumando y restando dos veces la desviación típica respecto a la línea central. De esta forma se obtiene un área en el gráfico dentro de la cual estará el precio casi todo el tiempo. Lo primero que nos indican las bandas son la volatilidad, ya que cuanto más ancha es el área, mayor volatilidad habrá en el mercado. A partir de ahí solo podemos dar los conceptos básicos de la interpretación de las bandas de Bollinger. Si su autor escribió un libro entero para explicarlas, no podemos pretender resumirlo todo en este post. En general, cuando el precio supera la banda superior y después vuelve a la zona de dentro de las bandas, lo consideraremos una señal de venta. Lo mismo ocurre al revés. Si el precio supera la banda inferior por abajo y luego vuelve al área de la banda, se considera una señal de compra. El problema...

Apalancarse para obtener beneficios increíbles...

¿No sabes qué es o cómo funciona el apalancamiento? En este post te explicamos de forma clara y sencilla en qué consiste, para que comprendas como gracias a él se pueden conseguir beneficios increíbles. El concepto del apalancamiento se basa en que en vez de comprar una cosa, compras la opción de comprar o vender esa cosa. Es decir, en vez de comprar 10000 libras esterlinas (GBP), compras la opción de comprarlas. Por ejemplo, imagina que la libra cotiza a 1.00 EUR, crees que en un mes va a subir y tu contraparte en el mercado piensa que va a bajar. En vez de comprar 1000 GBP, puedes comprar la opción de comprarlas, por ejemplo por 10 EUR. De esta manera cuando pase un mes, podrás efectuar la opción de compra y pagar 10000 EUR por 1000 GBP o no hacerlo. Si como pensabas, la el valor de la libra sube, puede que para entonces las 10000 GBP ya no valgan 10000 EUR, sino 10100 (una subida de un 1 % en un mes), si es así, podrías comprar las GBP por 10000 EUR y automáticamente venderlas por 10100 EUR. Es decir, tu inversión habrá sido de 10 EUR, el precio de la opción, y tu beneficio de 100 €. ¿Qué otra inversión te permite ganar un 1000 % de beneficio? Seguramente ninguna. Esta es la lógica que hay detrás del apalancamiento. Por tanto, con muy poco dinero, puedes mover muchísimo y obtener unos beneficios extraordinarios. Ahora bien, ten en cuenta que lo mismo puede ocurrir con las pérdidas. En el ejemplo anterior, si no aciertas tu predicción y la GBP baja, perderías tu opción de compra de 10 EUR, es decir, el 100 % de tu inversión. Por tanto, con el apalancamiento puedes...

International Student Loans and Admissions Help...

The path to college and graduate education in the US and Canada can be difficult for many international students particularly for residents of nations in the India sub-continent, Africa, Asia, and Eastern Europe. The testing requirements include language competency including TOEFL and IELTS as well as educational attainment such as the GRE/GMAT requirements. Whether the desired field of study is technical like computer science and engineering or social such as education or linguistics, we can help identify institutions that match your interests and goals. – Admissions Assistance Admissions policies and procedures vary significantly among educational institutions. In the US and Canada, there is a mix of public-supported and private educational institutions. Further, there is a wide range of institutions including some recent entries into the international education field. We can guide you on the way to selecting institutions and understanding the admission requirements. Colleges and universities also require proof of financial ability to complete the requested length of education including tuition and fees, housing, health insurance, food, and transportation. We can assist students and families that seek to gain admission, scholarships and funding. -Financial Assistance The keys to successful admission include completing applications, providing required test results, and meeting the requirements for student Visa into the US and Canada. Both for admission and successful study abroad, students must demonstrate financial capacity to support themselves while pursuing degrees. Undergraduate or graduate study in the US or Canada is a valuable opportunity to grow and expand the career horizons. The costs are substantial. Many international students will benefit from our resources for international student loans without cosigner. We can assist the student’s search for scholarships, student finance options, and provide admissions help. If you or someone you know seeks admission to college or graduate education in...

Tips to Find the Best Asset Management Company...

Are you ready to begin investing, or to learn how you can grow your portfolio? If so, then it may be a good idea to work with an asset management company. These companies are run by professionals in the industry who can help ensure you get the desired outcome from the investments you make. The only issue you may face is finding the right company for your particular needs. Some tips to help you along the way can be found here. Consider the Company’s History One of the first things to consider is the history of the company. Is it well-established and well-known? Has the company you are considering received good reviews from past customers? Are they willing to provide you with information regarding the names and numbers of past customers? Be sure to check out the history, experience and track record of an asset management company before using their services. This will help you know if they are reputable and reliable, or if you should continue looking for another service provider. Ask About the Company’s Terms and Fees Another important consideration is the terms and fees charged by the company. You should try to find a company that charges competitive rates compared to others in the area. This will ensure that you receive quality services, but that you are not having to overpay for what the company is doing. If you are ready to make investments, or if you want help and advice regarding what to do next, then hiring an asset management company just makes sense. By using the advice here, you can feel confident that you have found the right company for your needs. Be the first to...

You Might Want to Look into Refinancing Your Mortgage Loan in Knoxville...

By refinancing your mortgage loans in Knoxville, you are developing a strategy to meet your goals. From refinancing at a lower interest rate to negotiating different mortgage terms, you can take control of your finances both now and for the future. Is It Time to Refinance? There are many reasons why you might want to refinance your mortgage. The reason that most people tend to refinance is to reduce their monthly payments or to change their terms. For instance, if you are on a 15-year term mortgage, you may want to go to a 30-year fixed mortgage. This scenario would lock in your interest rate and potentially lower your payments. However, the quicker you pay down your mortgage, the more money you will have in your pocket. Plan for Your Future with a Bank You Trust When considering a mortgage refinance, you want to enter into a business partnership with a bank that you can trust who will put their experience, time, and talents to work for you, your home, and your future. You need to find a bank whose staff is knowledgeable of all the ins and outs of current market trends as well. This will enable them to give you solid advice on which mortgage options are best to meet your specific needs. There Are Many Factors to Consider It can be hard to tell if the time is right to renegotiate your mortgage. Interest rates are constantly changing, and the only way to know if refinancing is a smart choice is to talk with a professional financial expert. Contact a community bank today to get further information about refinancing mortgage loans in the Knoxville area. A community bank offers a relationship-centric approach to banking and will be pleased to help. Be...

Page 1 of 1012345...10...Last »