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Will You Add? - Puts and Calls: A Basic Options Primer
Let’s face it; leads are the lifeblood of any business. Without them, any business struggles and will eventually withers away. For this reason, it’s vitally important that your business have a system in place for capturing leads on a consistent basis.Now, there are many ways to go about acquiring leads and millions upon millions of dollars are spent annually in the hopes of doing just that. Unfortunately, many of those millions of dollars are being wasted on inefficient and ineffective lead generation methods.As a small business, every resource is valuable. This means you don’t have the luxury of wasting even a single dollar on ineffective methods of generating qualified leads. So how do you go about determining what’s effective and what’s a waste?Here are 5 critical elements to remember when creating your lead generation systems. Include these elements and you’re certain to have a system that consistently generates quality leads efficiently and
Power tends to corrupt and absolute power corrupts absolutely. When you are the boss of others, the temptation to use your power to control them is always there. However, if you start using this power too much it can bring disorder to your office environment.Think of how you would feel if you had a boss always driving you around. Would you like to work for someone like that? If your hard work was never appreciated, would your motivation last? Definitely not! Therefore it is important to do your duty as a boss in such a way that you get your respect for your position without upsetting your employees.Giving power to your employees to make them feel unthreatened by yours can be a dangerous tactic. Being over friendly with your subordinates or not acting like the boss might make them a little too relaxed with their work. They might even start questioning your decisions. Be friendly and do not gorge them with work, make them do just as much is required from them
Calls: A call is the right to buy stock for a certain, predetermined price. This right exists up until a specified expiration date, at which point the right to buy is forfeited.
Puts: A put is the right to sell stock at a certain, predetermined price. This right exists up until a specified expiration date, at which point the right to sell is forfeited.
How does it work?
An option is a contract between two parties, the buyer and the seller (or writer) or the option. The buyer is purchasing the right to buy or sell stock at the predetermined price within the timeframe specified in the contract. The seller is giving the buyer the right to buy stock from the seller, or sell stock to the seller at the specified price. Should the buyer CHOOSE to exercise his right, it is the OBLIGATION of the option seller to fulfill that request. The buyer has no obligations to the seller.
So in each contract, the buyer has the OPTION to exercise, and the seller has the OBLIGATION to fulfill the request, if the buyer chooses to exercise.
Example: Jack Sells ABC 100 Call to Jill
Consider the case of stock ABC, trading at $100. Jack sells a $110 call (the right to buy stock for the price of $110) to Jill. Jill now has the right to purchase ABC stock from Jack, for the price of $110. Jill, obviously would not choose to exercise this right today, as she could easily buy ABC stock from the marketplace for $100, instead. However, if tomorrow, the price of ABC shoots up to $120, Jill may choose to exercise her RIGHT to buy ABC for $110. Doing so, Jill would be effectively buying ABC stock at a $10 discount to the market. We would say that ABC is "Ten dollars in the money." Consider it a $10 off coupon for ABC stock. One strategy for Jill would be to then exercise her right to buy ABC for $110, and simultaneously sell stock in the marketplace for $120. This would effectively net Jill a $10 profit
Christian credit card debt consolidation is a debt consolidation program for Christians. These programs are usually provided by, not-for-profit Christian associations, for their members who find themselves in unmanageable debts. Debt consolidation can help lower the monthly payments, freeing up more resources that can be used for other purposes. Christian credit card debt consolidation reduces the risk of a payment default, and thereby saves the credit rating of the borrower.It is very common for people to use credit cards to pay for their everyday purchases as well as occasional expensive buys. People who have a good credit rating are considered eligible for credit by many credit card companies, as they are considered to be low risk. Therefore, to attract more customers and increase their customer base, these companies send credit card applications to such people with pre-approved credit card offers. Many such cardholders may find the whole process of debt manage
How does it work?
An option is a contract between two parties, the buyer and the seller (or writer) or the option. The buyer is purchasing the right to buy or sell stock at the predetermined price within the timeframe specified in the contract. The seller is giving the buyer the right to buy stock from the seller, or sell stock to the seller at the specified price. Should the buyer CHOOSE to exercise his right, it is the OBLIGATION of the option seller to fulfill that request. The buyer has no obligations to the seller.
So in each contract, the buyer has the OPTION to exercise, and the seller has the OBLIGATION to fulfill the request, if the buyer chooses to exercise.
Example: Jack Sells ABC 100 Call to Jill
Consider the case of stock ABC, trading at $100. Jack sells a $110 call (the right to buy stock for the price of $110) to Jill. Jill now has the right to purchase ABC stock from Jack, for the price of $110. Jill, obviously would not choose to exercise this right today, as she could easily buy ABC stock from the marketplace for $100, instead. However, if tomorrow, the price of ABC shoots up to $120, Jill may choose to exercise her RIGHT to buy ABC for $110. Doing so, Jill would be effectively buying ABC stock at a $10 discount to the market. We would say that ABC is "Ten dollars in the money." Consider it a $10 off coupon for ABC stock. One strategy for Jill would be to then exercise her right to buy ABC for $110, and simultaneously sell stock in the marketplace for $120. This would effectively net Jill a $10 profit
For the uninitiated – and even for merchants who have owned an internet business for years - the wide array of credit card processing fees that can be incurred in the operation of an ecommerce store can be a bit bewildering.In this article, we’ll discuss most of the costs involved in maintaining an internet merchant account. Note that these fees are in addition to what you may have to pay as an upfront fee for the software required in order to set up your ecommerce facility (these fees can range from $50 to $200 usually, although nowadays some providers waive this fee altogether). You may also have to pay for a shopping cart, although this service too is now sometimes packaged as a freebie when you set up the ecommerce facility.Here are the fees that merchants can anticipate having to pay on an ongoing basis in order to process credit cards via their website:The most significant monthly fee you’ll be charged is what is known as the Discount Rate – a
So in each contract, the buyer has the OPTION to exercise, and the seller has the OBLIGATION to fulfill the request, if the buyer chooses to exercise.
Example: Jack Sells ABC 100 Call to Jill
Consider the case of stock ABC, trading at $100. Jack sells a $110 call (the right to buy stock for the price of $110) to Jill. Jill now has the right to purchase ABC stock from Jack, for the price of $110. Jill, obviously would not choose to exercise this right today, as she could easily buy ABC stock from the marketplace for $100, instead. However, if tomorrow, the price of ABC shoots up to $120, Jill may choose to exercise her RIGHT to buy ABC for $110. Doing so, Jill would be effectively buying ABC stock at a $10 discount to the market. We would say that ABC is "Ten dollars in the money." Consider it a $10 off coupon for ABC stock. One strategy for Jill would be to then exercise her right to buy ABC for $110, and simultaneously sell stock in the marketplace for $120. This would effectively net Jill a $10 profit
As a business coach, December and January are months when I help lots of business people with their stress management. The festive season comes round every year without fail yet many small businesses seem to be surprised by it every year.Following a particularly bad time when he not only under-stocked his inventory and lost sales but also failed to relax for Christmas Day, one of my clients created this festive checklist to ensure that he could enjoy all his future holiday breaks properly.Set yourself a goal of planning aheadPredict your expected demand levels from what happened during the last festive sales season. Hire temps to meet seasonal demand without adding to your long-term costs. Plan your cash flow through the holiday period and organise stand-by funding to boost your working capital in case your sales peak. Send greetings cards to your best customers, remind them what you offer,
If you have had a home business for awhile, chances are good that you have a great local following that provides you with most of your business. This might be great but you might feel as if you have reached a ceiling as far as your payment goes, and what you are going to be making from your home business. If you feel like you can’t go any farther with the local responsibilities that you have, you might want to move your home business online. This is something that you should consider if you find yourself wanting to grow, but don’t’ find the avenues for it locally.First StepsFirst, you have to decide if you are going to benefit from being online. Remember that if you move your home business online, you can expect more business right away. So you have to decide whether or not you are going to be able to handle more business, and if you are, you have to decide if it is going to be worth it. If you have the time and the resources to be able to handle a j
Jack (the seller of the option), on the other hand would have the OBLIGATION to sell Jill ABC stock at the price of $110 dollars, $10 LESS than he could sell it in the marketplace. This represents, in terms of opportunity cost, a $10 loss to Jack.
This potential risk that Jack assumes when selling the option to Jill is the reason why Jill must pay Jack for the option. If the price of ABC stock were to go down to $90 and stay there past the predetermined expiration date of the option, Jack would pocket the amount of money that he sold the option for. This amount is the "premium" of the option.
Summary: When option sellers sell options, they assume a risk that they will be required to fulfill the obligation of the contract at a loss. For this risk, they receive the premium (price) of the option from the buyer.
When option buyers buy options, they acquire the potential to make money if the underlying stock moves in the direction they predict. If it does so, they stand to potentially gain the difference between the exercise price and the stock value at a later date. For this potential reward, they must pay the seller of the option the premium (price). If the option expires worthless, the buyer will have lost the premium.
Time Value
Would you p
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