Sunday, May 3, 2015

Understanding Stock Options for Beginners


stock options 

Many wannabe traders think that stock options are stock substitutes that require higher leverage and lesser capital. After all, an option is used to bet on the direction of the stocks to either buy or sell at a specified strike price and date --- just like common stocks. But options have a  different characteristic, and uses terminologies that differ with common stocks. 

There are two positions in options: calls and puts. A call conveys the right, but not the obligation to buy a financial instrument at a strike price, before expiration. On the other hand, a put goes the other route. It conveys the right, but not the obligation, to sell an instrument at a strike price before expiration.





Trading in stocks may be compared to gambling in a casino when you bet against the house. If you have a string of luck, then you have a strong chance of winning against the house. It may also be compared to betting at the racetracks, where all bets are placed in a pool. The winning bets share the pool based on calculated payoffs, otherwise known as the parimutuel system. The racetrack earns as it gets a cut for the use of the venue to trade.

In mathematical terms, winning in an options --- is nothing but a zero sum game of chance; and  like in  all betting games, you only play with monies that you can afford to lose - or you stand to lose your shirt. 


Photo credit:  stockoptionsonline.com


#stock_options


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Onli in da Pilipins: A Writer's Journal

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My Old Man is Flirting with the Girls



My old man is flirting with the girls. He had his hair dyed, had facials, and walks with a swagger as we attended a friend's party today. At 50 years old, he still had the nerve of wearing tight levy’s jeans, and a batik shirt that’s open at the front.


I find it most amusing to see an old man competing with younger men,  to prove that he still has what it takes. I say to him, that he looks like a peacock on a prowl for a mate. He answered back, that I am a jealous old woman!

So, he strutted and swagger, so self-assured that he is God's gift to women. With his soft melodious voice, he flirted with women, young and old, like a young teenage boy on the loose. I sat at one table with my laptop and continue to do my work. Looking from the courtyard, I saw him try to mesmerize the girls.

He looked so pathetic, that I had to talk to him. I said, “ Honey, you better stop. This flirting will not do you any good. How can you flirt when you keep looking at me? I am never out of your sight, that’s why the girls would not believe, that you have the “hots” for them!”



He stood there very much flustered and said, “Why would I leave you? So you can fool around with the other old men?” My face turned red, and I answered back, “Let us just finished this off with fisticuffs! You don't have brain cells, anymore!”

He laughed so hard and whispered, “Ok, let us go home and settle this peacefully!” Well, that blew it, and I replied,  "No way! I am going to stay put and enjoy this party. The food is much too sumptuous to ignore."

So we stayed, and we’re still here eyeing each other!  :D

Photo credit:  commons.wikimedia.org

#old_man
#flirting

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Onli in da Pilipins: A Writer's Journal
Copyright © csmiravite™. All Rights Reserved