""The purchase of a put option provides leverage in the case of a downward move by the underlying stock." 画重点:Leverage & Downward / 杠杆&下跌趋势 买进看跌期权与卖出股票 简单讲,投资者判断股票价格进入下跌趋势时,可以选择买进看跌期权或者卖空股票。举例说明:假定XYZ股票价格是50,XYZ 7月到期的定...
In my friend's case, he decided to go on margin to buy more of one stock that already takes up a 90% weighting in his entire portfolio. Going on margin to buy a stock is one thing. Going on margin to buy more stock that already dominates your net worth is another level of dangerou...
Buying Tesla stock is like buying a call option on Elon MuskKara Chin
If you sell calls or puts, you're selling a potential liability in exchange for an upfront premium. For example, if you sell a put, you're giving someone else the right to make you pay a certain price for a stock. Although your loss is defined by the strike price of the option con...
stock purchases have the option of being purchased on margin which means you can purchase more stock than you have funds immediately available. In a margin situation the financial firm is lending the investor additional money to buy more stock than they normally would otherwise. A margin loan is...
"Buying the dip" is a phrase used when purchasing a stock once it has fallen in value or " at a discount". It has its benefits, and it also has its risks. Is buying the dip right for you?“Buy low, sell high!...Buy the dip!” The investing world is full of memorable ...
is callable or convertible. Callable bonds can be redeemed by the issuer before maturity, potentially leaving investors with reinvestment risk. Convertible bonds provide the option to convert the bond into a specified number of shares of common stock, offering potential upside if the stock price ...
The maximum potential profit for buying calls is the same profit potential as buying stock: it is theoretically unlimited. The reason is that a stock can rise indefinitely, and so, too, can the value of an option. Conversely, the maximum potential loss is the premium paid to purchase the ...
a田园风格 Landschaftart[translate] aThe above advantages make buying stock in a corporation more attractive to investors than investing in a partnership.It is possible for some corporations to assemble large amounts of capital from the combined investments of many stockholders.Actually,a corporation's...
Call options are a type of option that increases in value when a stock rises. They allow the owner to lock in a price to buy a specific stock by a specific date. Call options are appealing because they can appreciate quickly on a small move up in the sto