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Casual Articles - Time / Diagonal Spreads - Seller Risk / Reward
Selling on eBay – Don't L@@K
"L@@K" !!!Let’s face it, "L@@K" is really not a good beginning to an article, and it’s definitely not good to include in the Title for your eBay listing.Why, you ask? Isn’t L@@K a good eye catcher? Won’t people scrolling through the categories on eBay notice it and click through to the description, bid on your item and make you gobs of money? Well, perhaps, and perhaps people have learned to tune out the little gimmick. The reality is, a great number of people find items on eBay using the search function, and I
neither be stopped nor turned back."L@@K" !!!Let’s face it, "L@@K" is really not a good beginning to an article, and it’s definitely not good to include in the Title for your eBay listing.Why, you ask? Isn’t L@@K a good eye catcher? Won’t people scrolling through the categories on eBay notice it and click through to the description, bid on your item and make you gobs of money? Well, perhaps, and perhaps people have learned to tune out the little gimmick. The reality is, a great number of people find items on eBay using the search function, and I
It only moves forward which always hurts the time spread seller.
Increases in implied volatility are also detrimental to the
potential profits of the time- spread seller. When implied
volatility increases, the out month option (which the seller is
short) increases in value faster than the near month optio
Did eBay Open the Door for Google?
We recently received an e-mail notifying us that eBay feels they need to level the playing field of their auctions vs. store listings. EBay feels that store listings are too cheap, and they need to increase the price to encourage more auctions, or core listings.Bill Cobb, President of eBay North America claims that while 83% of the listings are store inventory listings, 91% of sales closed were of the core listings (i'm sorry, I fail to see the advantage store listings had?). He claims that the increase will mean that sto
The seller of a time spread buys the nearer month option andWe recently received an e-mail notifying us that eBay feels they need to level the playing field of their auctions vs. store listings. EBay feels that store listings are too cheap, and they need to increase the price to encourage more auctions, or core listings.Bill Cobb, President of eBay North America claims that while 83% of the listings are store inventory listings, 91% of sales closed were of the core listings (i'm sorry, I fail to see the advantage store listings had?). He claims that the increase will mean that sto
sells the outer-month option in a one to one ratio.
In order to profit from the sale of the time spread, the seller
is looking basically for two things.
First is a decrease in implied volatility. As volatility
decreases, the out-month option (which the seller is short)
loses money faster than the near month option (which the seller
is long) because of the higher vega in the out month option.
This will cause the spread to contract or lose value. That will
be profitable for the time spread seller.
Second, the stock can move. As stated before, a time spread is
at its widest, most expensive point when it is at-the-money. A
movement away from the strike in either direction decreases the
value of the spread. So, as long as the stock moves in either
direction away from the strike, the seller’s position could be
profitable provided that time decay does not outperform the
stock movement.
Time, unfortunately, never works in favor of the time-spread
seller. The passage of time hurts the seller because the nearer
month option (which the seller is long) naturally decays at a
faster rate than does the out-month option (which the seller is
short). These differing decay rates cause the spread to expand
and increase in value. That obviously produces a loss for the
time spread seller. Time can neither be stopped nor turned back.
It only moves forward which always hurts the time spread seller.
Increases in implied volatility are also detrimental to the
potential profits of the time- spread seller. When implied
volatility increases, the out month option (which the seller is
short) increases in value faster than the near month option
Building A Perpetual Referral System
The essence of business success is measured by achieving 100% of 3 key goals: Profit goals, Balance goals and Referrals goals. There are hundreds of books that have been written on each of these topics. Today we look at referrals. There's no business like referral business. In fact, referrals are the Holy Grail of business development. Referred clients take less time to close, produce higher gross profits and refer you more quickly.The 7 key components of a Perpetual Referral Machine1. Provide a consistent customer
oses money faster than the near month option (which the sellerThe essence of business success is measured by achieving 100% of 3 key goals: Profit goals, Balance goals and Referrals goals. There are hundreds of books that have been written on each of these topics. Today we look at referrals. There's no business like referral business. In fact, referrals are the Holy Grail of business development. Referred clients take less time to close, produce higher gross profits and refer you more quickly.The 7 key components of a Perpetual Referral Machine1. Provide a consistent customer
is long) because of the higher vega in the out month option.
This will cause the spread to contract or lose value. That will
be profitable for the time spread seller.
Second, the stock can move. As stated before, a time spread is
at its widest, most expensive point when it is at-the-money. A
movement away from the strike in either direction decreases the
value of the spread. So, as long as the stock moves in either
direction away from the strike, the seller’s position could be
profitable provided that time decay does not outperform the
stock movement.
Time, unfortunately, never works in favor of the time-spread
seller. The passage of time hurts the seller because the nearer
month option (which the seller is long) naturally decays at a
faster rate than does the out-month option (which the seller is
short). These differing decay rates cause the spread to expand
and increase in value. That obviously produces a loss for the
time spread seller. Time can neither be stopped nor turned back.
It only moves forward which always hurts the time spread seller.
Increases in implied volatility are also detrimental to the
potential profits of the time- spread seller. When implied
volatility increases, the out month option (which the seller is
short) increases in value faster than the near month optio
Invasion Revisited... and with Good Reason
If you read my previous article located now at http://www.mywizardads.com/articles/article75.txt and soon at .../article75.html, you will already be familiar with my warning regarding Google's latest desktop helper.And today I received further proof that issuing that warning was the correct thing to do.My reason behind the first article was based on my reading of an initial article written by Mike Banks founder of WebSite101 and frequent author in the SitePro News (an outstanding newsletter).At that writing
the-money. AIf you read my previous article located now at http://www.mywizardads.com/articles/article75.txt and soon at .../article75.html, you will already be familiar with my warning regarding Google's latest desktop helper.And today I received further proof that issuing that warning was the correct thing to do.My reason behind the first article was based on my reading of an initial article written by Mike Banks founder of WebSite101 and frequent author in the SitePro News (an outstanding newsletter).At that writing
movement away from the strike in either direction decreases the
value of the spread. So, as long as the stock moves in either
direction away from the strike, the seller’s position could be
profitable provided that time decay does not outperform the
stock movement.
Time, unfortunately, never works in favor of the time-spread
seller. The passage of time hurts the seller because the nearer
month option (which the seller is long) naturally decays at a
faster rate than does the out-month option (which the seller is
short). These differing decay rates cause the spread to expand
and increase in value. That obviously produces a loss for the
time spread seller. Time can neither be stopped nor turned back.
It only moves forward which always hurts the time spread seller.
Increases in implied volatility are also detrimental to the
potential profits of the time- spread seller. When implied
volatility increases, the out month option (which the seller is
short) increases in value faster than the near month optio
Forex Investing and Trading for Newcomers
The foreign exchange market, or ‘forex’ market, is becoming increasingly popular in a wide variety of applications. Everyone knows that countries have currencies and they are traded against one another, but few realize the economic significance of these markets in their daily lives, and also there are many myths and rumors surrounding the forex market. In addition, few realize how to get involved in the forex market, and become discouraged when getting the wrong answers.The forex market by nature is de-centralized becau
The foreign exchange market, or ‘forex’ market, is becoming increasingly popular in a wide variety of applications. Everyone knows that countries have currencies and they are traded against one another, but few realize the economic significance of these markets in their daily lives, and also there are many myths and rumors surrounding the forex market. In addition, few realize how to get involved in the forex market, and become discouraged when getting the wrong answers.The forex market by nature is de-centralized becau
seller. The passage of time hurts the seller because the nearer
month option (which the seller is long) naturally decays at a
faster rate than does the out-month option (which the seller is
short). These differing decay rates cause the spread to expand
and increase in value. That obviously produces a loss for the
time spread seller. Time can neither be stopped nor turned back.
It only moves forward which always hurts the time spread seller.
Increases in implied volatility are also detrimental to the
potential profits of the time- spread seller. When implied
volatility increases, the out month option (which the seller is
short) increases in value faster than the near month optio
Total Guide to Search Engine Optimization PART 1
First of all I will start with my own experience. I started my career in SEO about 4 months ago and I work at Netramind Technology as a Search Engine Optimizer.I never realized that there was so much to the field of Search Engine optimization until I began working with it. I will show you the ways and the means on how to get your website in the top twenty in the major search engines.…I cannot forget one name that has helped me a lot in SEO. Her name is SYLVIA WHITE.The first thing you need to practice when
neither be stopped nor turned back.First of all I will start with my own experience. I started my career in SEO about 4 months ago and I work at Netramind Technology as a Search Engine Optimizer.I never realized that there was so much to the field of Search Engine optimization until I began working with it. I will show you the ways and the means on how to get your website in the top twenty in the major search engines.…I cannot forget one name that has helped me a lot in SEO. Her name is SYLVIA WHITE.The first thing you need to practice when
It only moves forward which always hurts the time spread seller.
Increases in implied volatility are also detrimental to the
potential profits of the time- spread seller. When implied
volatility increases, the out month option (which the seller is
short) increases in value faster than the near month option
(which the seller is long) due to the out month option’s higher
vega. This creates an expansion in the spread and increases its
value resulting in a negative for the spread seller.
The seller, in theory, has an unlimited loss potential. For the
seller, the maximum loss potential is not so much determined by
the stock price movement but by the movement in implied
volatility. As the seller, you will be long the front month call
and short the out- month call. As we know, the out month call
will be more sensitive to movements in implied volatility due to
a higher vega or volatility sensitivity component. If implied
volatility increases then the seller’s short, out month option
will increase more in value than will the seller’s long, front
month option. This will cause the spread to widen or increase in
value; that is negative for the seller.
The second risk is that the option the seller is long is going
to expire approximately 30 days prior to the option the seller
is short. If volatility does not decrease or the stock does not
move away from the strike significantly before the seller’s long
option expires, he/she will be left short a naked or un-hedged
option and a loss on the position. If the seller can wait out
the position, the lost extrinsic value of the short option can
be recaptured. As we know, this option too has a limited life
and must shed
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