Based on the above relative value analysis results, Microsoft is overvalued relative to Oracle. However, Microsoft is also undervalued relative to VMware. Sponsored Discover a better way to trade Could you be g
Par value is the face value of a bond or a share of a stock. Unlike the market price, the par value of a financial instrument is a stable price determined at the time of issuance. While both stocks and bonds can have par values, they’re much more import
A currency pair is the pairing of two different currencies, such as Euro and the United States dollar, expressed like EUR/USD. Traders buying the EUR/USD are speculating that the value of the Euro will increase relative to the US dollar. Traders selling the EUR/USD are speculating that the...
Delta is the theoretical estimate of how much an option's value may change given a $1 move UP or DOWN in the underlying security. The Delta values range from −1 to +1, with 0 representing an option where the premium barely moves relative to price changes in the underlying stock. ...
ETFs vs. mutual funds: Generally speaking, ETFs have lower fees than mutual funds, which is a big part of their appeal. ETFs also offer better tax efficiency than mutual funds. There's generally more turnover within a mutual fund (especially those that are actively managed) relative to an ...
Such a distribution is usually characterized by the standard deviation of its relative changes, also known as its volatility, over a given time interval.Rowe, David M
For instance, a call value goes up as the stock (underlying) goes up. This is the key to understanding the relative value of options. The less time there is until expiry, the less value an option will have. This is because the chances of a price move in the underlying stock diminish...
Value stocks Stocks that look cheap relative to their earnings or assets. Value ETFs are the funds that hold these stocks. Dividend stocks Stocks that pay a dividend or have a strong payout record. Here are some of the best dividend ETFs. Industry Securities from companies in a specific indu...
Different financial markets have different levels of allowable leverage. Equity markets, like the stock market, allow the trader to purchase only twice the value of his account balance. The highest leverage is found in foreign exchange markets, where a trader may purchase assets worth as much as...
So if SPY is trading at $400, you’d be looking at a strike price of 380. You pull up an option chain and see that the 90-day, 380-strike put is offered at $5.80. Current portfolio value $200,000 Correlated index ETF SPDR S&P 500 ETF (SPY) Current value of SPY $400 per ...