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Add You - Protective Put Strategy in Different Scenarios
College Student Credit Cards - The Ins and Outs
College is where many of us get to enjoy our first taste of freedom and living pretty much in the manner that we desire. Along with this newly found independence, comes financial freedom and responsibility. Because of this, many new college students today are in the marketplace for college student credit cards. Students see all the enticing college credit cards available with all of the unique rewards, points and cash back offers available sound so great and many students do not know exactly which way to
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the front month 27.5 put for $1.00. Next, assume the stockCollege is where many of us get to enjoy our first taste of freedom and living pretty much in the manner that we desire. Along with this newly found independence, comes financial freedom and responsibility. Because of this, many new college students today are in the marketplace for college student credit cards. Students see all the enticing college credit cards available with all of the unique rewards, points and cash back offers available sound so great and many students do not know exactly which way to
closes at $27.50 on expiration day.
Your maximum loss calculation would be:
($30.00 –$ 27.50) - $1.00 = $3.50
$30.00 (stock price) minus 27.5 (strike price) equals a $2.50
capital loss. Do not forget that with the stock at $27.50, the
27.5 puts will be worthless.
Add the capital loss ($2.50) plus the option loss ($1.00). The
total is $3.50 which is your maximum possible loss in that
position. This formula will work every time.
Looking at the three hypothesized scenarios, we find that only
one scenario, the “up” scenario, can produce a positive return
and that’s only when the stock increa
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If you are selling online you are opening your sales to a much larger group than you would normally sell to. This means that you can target more effectively your consumer and narrow the selection of benefits that you are offering the target customer. So increasing considerably your chances of a sale.Know your customer[Point one]If your business is selling then you will know your customers well. However for successful online selling you must narrow this perspective and choose a particu
As previously stated, when we buy a stock, three potentialIf you are selling online you are opening your sales to a much larger group than you would normally sell to. This means that you can target more effectively your consumer and narrow the selection of benefits that you are offering the target customer. So increasing considerably your chances of a sale.Know your customer[Point one]If your business is selling then you will know your customers well. However for successful online selling you must narrow this perspective and choose a particu
outcomes exist. The stock can go up, go down, or remain
stagnant. Let's hypothesize results across these three
scenarios. Say you buy the stock for $31.00 and buy the front
month 30 put for $1.00.
In the “up” scenario, let’s assume the stock price is $31.50 at
expiration. The results are that you have a $.50 gain from
capital appreciation and a $1.00 loss from the purchase of the
put which combined gives us a $.50 overall loss.
It is important to realize that the up scenario will only
produce a positive return if the stock gain is greater than the
amount paid for the put. That being the case, you calculate the
breakeven point for the protective put strategy by adding the
purchase price of the stock to the price of the put.
In the “up” scenario, add the stock price $31.00 plus the option
price $1.00 and you get a breakeven of $32.00. So, until the
stock reaches $32.00, the position will not produce a positive
return. Above $32.00 the position will gain the amount equal to
the stock price minus the premium paid for the option..
In the “stagnant” scenario, the position will produce a loss.
Since the stock hasn’t moved, there will be no capital gain or
loss and with the stock at $31.00 at expiration, the puts are
worthless. The position lost $1.00, the amount you paid for the
puts.
In the “down” scenario, the position will again produce a loss.
If the stock price were to trade down $1.00 to $30.00, then you
would have a $1.00 capital loss.
With the stock at $30.00, the 30 puts will be worthless, thus
you incur a $1.00 loss because that is what you paid for them.
Your total loss will be $2.00.
However, in the “down” scenario, the protective put will set a
cap on your losses. Let’s see how that works. We’ll set the
stock price down to $28.00. Since you purchased the stock at
$31.00, there will be a capital loss of $3.00.
The puts, however, are now in the money with the stock below
$30.00. With the stock at $28.00, the 30 puts are worth $2.00.
You paid $1.00 for them so you have a $1.00 profit in the puts.
Combine the put profit ($1.00) with the capital loss (-$3.00)
and you have an overall loss of $2.00. The $2.00 loss is the
maximum amount you can lose regardless of how low the stock
declines, even if it goes as low as zero. This is what is meant
by maximum protection.
In every protective put position it is possible to calculate
your anticipated maximum loss. Use the formula: (stock price
minus strike price) minus the option’s price equals total
maximum loss.
Maximum Loss = (Stock Price – Strike Price) – Option Price
For example, suppose you paid $30.00 for your stock. You bought
the front month 27.5 put for $1.00. Next, assume the stock
closes at $27.50 on expiration day.
Your maximum loss calculation would be:
($30.00 –$ 27.50) - $1.00 = $3.50
$30.00 (stock price) minus 27.5 (strike price) equals a $2.50
capital loss. Do not forget that with the stock at $27.50, the
27.5 puts will be worthless.
Add the capital loss ($2.50) plus the option loss ($1.00). The
total is $3.50 which is your maximum possible loss in that
position. This formula will work every time.
Looking at the three hypothesized scenarios, we find that only
one scenario, the “up” scenario, can produce a positive return
and that’s only when the stock increas
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purchase price of the stock to the price of the put.
In the “up” scenario, add the stock price $31.00 plus the option
price $1.00 and you get a breakeven of $32.00. So, until the
stock reaches $32.00, the position will not produce a positive
return. Above $32.00 the position will gain the amount equal to
the stock price minus the premium paid for the option..
In the “stagnant” scenario, the position will produce a loss.
Since the stock hasn’t moved, there will be no capital gain or
loss and with the stock at $31.00 at expiration, the puts are
worthless. The position lost $1.00, the amount you paid for the
puts.
In the “down” scenario, the position will again produce a loss.
If the stock price were to trade down $1.00 to $30.00, then you
would have a $1.00 capital loss.
With the stock at $30.00, the 30 puts will be worthless, thus
you incur a $1.00 loss because that is what you paid for them.
Your total loss will be $2.00.
However, in the “down” scenario, the protective put will set a
cap on your losses. Let’s see how that works. We’ll set the
stock price down to $28.00. Since you purchased the stock at
$31.00, there will be a capital loss of $3.00.
The puts, however, are now in the money with the stock below
$30.00. With the stock at $28.00, the 30 puts are worth $2.00.
You paid $1.00 for them so you have a $1.00 profit in the puts.
Combine the put profit ($1.00) with the capital loss (-$3.00)
and you have an overall loss of $2.00. The $2.00 loss is the
maximum amount you can lose regardless of how low the stock
declines, even if it goes as low as zero. This is what is meant
by maximum protection.
In every protective put position it is possible to calculate
your anticipated maximum loss. Use the formula: (stock price
minus strike price) minus the option’s price equals total
maximum loss.
Maximum Loss = (Stock Price – Strike Price) – Option Price
For example, suppose you paid $30.00 for your stock. You bought
the front month 27.5 put for $1.00. Next, assume the stock
closes at $27.50 on expiration day.
Your maximum loss calculation would be:
($30.00 –$ 27.50) - $1.00 = $3.50
$30.00 (stock price) minus 27.5 (strike price) equals a $2.50
capital loss. Do not forget that with the stock at $27.50, the
27.5 puts will be worthless.
Add the capital loss ($2.50) plus the option loss ($1.00). The
total is $3.50 which is your maximum possible loss in that
position. This formula will work every time.
Looking at the three hypothesized scenarios, we find that only
one scenario, the “up” scenario, can produce a positive return
and that’s only when the stock increa
The Necessity Of Strategic Marketing
We find many companies that are expending resources trying to sell to the wrong markets against competitors who are way stronger than they are in the markets they are trying to sell into and lack of fundamental focus in this area as a result of not understanding their strategic marketing imperatives. We see companies that are selling the wrong products with the wrong people to the wrong customers and with strategic marketing planning work could fundamentally alter the odds and gain a much more solid footi
s.We find many companies that are expending resources trying to sell to the wrong markets against competitors who are way stronger than they are in the markets they are trying to sell into and lack of fundamental focus in this area as a result of not understanding their strategic marketing imperatives. We see companies that are selling the wrong products with the wrong people to the wrong customers and with strategic marketing planning work could fundamentally alter the odds and gain a much more solid footi
In the “down” scenario, the position will again produce a loss.
If the stock price were to trade down $1.00 to $30.00, then you
would have a $1.00 capital loss.
With the stock at $30.00, the 30 puts will be worthless, thus
you incur a $1.00 loss because that is what you paid for them.
Your total loss will be $2.00.
However, in the “down” scenario, the protective put will set a
cap on your losses. Let’s see how that works. We’ll set the
stock price down to $28.00. Since you purchased the stock at
$31.00, there will be a capital loss of $3.00.
The puts, however, are now in the money with the stock below
$30.00. With the stock at $28.00, the 30 puts are worth $2.00.
You paid $1.00 for them so you have a $1.00 profit in the puts.
Combine the put profit ($1.00) with the capital loss (-$3.00)
and you have an overall loss of $2.00. The $2.00 loss is the
maximum amount you can lose regardless of how low the stock
declines, even if it goes as low as zero. This is what is meant
by maximum protection.
In every protective put position it is possible to calculate
your anticipated maximum loss. Use the formula: (stock price
minus strike price) minus the option’s price equals total
maximum loss.
Maximum Loss = (Stock Price – Strike Price) – Option Price
For example, suppose you paid $30.00 for your stock. You bought
the front month 27.5 put for $1.00. Next, assume the stock
closes at $27.50 on expiration day.
Your maximum loss calculation would be:
($30.00 –$ 27.50) - $1.00 = $3.50
$30.00 (stock price) minus 27.5 (strike price) equals a $2.50
capital loss. Do not forget that with the stock at $27.50, the
27.5 puts will be worthless.
Add the capital loss ($2.50) plus the option loss ($1.00). The
total is $3.50 which is your maximum possible loss in that
position. This formula will work every time.
Looking at the three hypothesized scenarios, we find that only
one scenario, the “up” scenario, can produce a positive return
and that’s only when the stock increa
Student Loan Debt Consolidation - Manage Your Debt The Simple Way
The process or the act of combining multiple loans into a single loan in order to decrease the monthly payment amount or elevate the repayment period is typically known as Student Loan Consolidation.There are many reasons behind this, some of those are, fixed interest rates, and money saving payment incentives, decreased monthly payments and new or renewed deferments.Those students who have graduated are still having difficulties in organizing the payments of all the loans that they had accu
rth $2.00.The process or the act of combining multiple loans into a single loan in order to decrease the monthly payment amount or elevate the repayment period is typically known as Student Loan Consolidation.There are many reasons behind this, some of those are, fixed interest rates, and money saving payment incentives, decreased monthly payments and new or renewed deferments.Those students who have graduated are still having difficulties in organizing the payments of all the loans that they had accu
You paid $1.00 for them so you have a $1.00 profit in the puts.
Combine the put profit ($1.00) with the capital loss (-$3.00)
and you have an overall loss of $2.00. The $2.00 loss is the
maximum amount you can lose regardless of how low the stock
declines, even if it goes as low as zero. This is what is meant
by maximum protection.
In every protective put position it is possible to calculate
your anticipated maximum loss. Use the formula: (stock price
minus strike price) minus the option’s price equals total
maximum loss.
Maximum Loss = (Stock Price – Strike Price) – Option Price
For example, suppose you paid $30.00 for your stock. You bought
the front month 27.5 put for $1.00. Next, assume the stock
closes at $27.50 on expiration day.
Your maximum loss calculation would be:
($30.00 –$ 27.50) - $1.00 = $3.50
$30.00 (stock price) minus 27.5 (strike price) equals a $2.50
capital loss. Do not forget that with the stock at $27.50, the
27.5 puts will be worthless.
Add the capital loss ($2.50) plus the option loss ($1.00). The
total is $3.50 which is your maximum possible loss in that
position. This formula will work every time.
Looking at the three hypothesized scenarios, we find that only
one scenario, the “up” scenario, can produce a positive return
and that’s only when the stock increa
Leadership Lesson in the Face of Virginia Tech Tragedy
When the gunfire ceased nearly 3 dozen promising lives had ended: A professor doing valuable research about cerebral palsy; Future psychiatrists, biologists, international business executives, and engineers; Musical minds with songs yet to be written and sung; Charity workers, leaving a void for the needy others will fill or that will go unfulfilled; Many hopes, dreams, promises, aspirations, and potential were lost.The following day the remaining students and faculty, alumni, family members, polit
r>
the front month 27.5 put for $1.00. Next, assume the stockWhen the gunfire ceased nearly 3 dozen promising lives had ended: A professor doing valuable research about cerebral palsy; Future psychiatrists, biologists, international business executives, and engineers; Musical minds with songs yet to be written and sung; Charity workers, leaving a void for the needy others will fill or that will go unfulfilled; Many hopes, dreams, promises, aspirations, and potential were lost.The following day the remaining students and faculty, alumni, family members, polit
closes at $27.50 on expiration day.
Your maximum loss calculation would be:
($30.00 –$ 27.50) - $1.00 = $3.50
$30.00 (stock price) minus 27.5 (strike price) equals a $2.50
capital loss. Do not forget that with the stock at $27.50, the
27.5 puts will be worthless.
Add the capital loss ($2.50) plus the option loss ($1.00). The
total is $3.50 which is your maximum possible loss in that
position. This formula will work every time.
Looking at the three hypothesized scenarios, we find that only
one scenario, the “up” scenario, can produce a positive return
and that’s only when the stock increases more than the amount
you paid for the puts.
The other two scenarios produced losses. If the stock is
stagnant, you lose the amount you paid for the put. If the stock
goes down, you lose again- but the loss is limited. It is the
limiting of loss that makes the protective put an attractive and
useful strategy.
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