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Casual Articles - Time / Diagonal Spreads - Behavior of the Spread
Building Your Dream Marketing Team
The Fantasy: Your marketing budget is packed to the brim with money to help build your dream marketing team. You hire nothing short of the best and life is good.The Reality: Your staff is overworked, your budget’s tight and you complete about half of the projects on your to-do list.This reality is what many marketing mangers and small businesses face on a daily basis. Even so, you’re still expected to consistently produce better results – and the bar keeps on rising while you keep losing resources. It’s situations like these that call for the ou
the fundamentalThe Fantasy: Your marketing budget is packed to the brim with money to help build your dream marketing team. You hire nothing short of the best and life is good.The Reality: Your staff is overworked, your budget’s tight and you complete about half of the projects on your to-do list.This reality is what many marketing mangers and small businesses face on a daily basis. Even so, you’re still expected to consistently produce better results – and the bar keeps on rising while you keep losing resources. It’s situations like these that call for the ou
behavior of the time-spread.
The above chart shows an option decay graph. The numbers across
the bottom represent days to expiration. Along the decay line,
you will notice an “X” at the 30 day to expiration line and
another “X” at the 60 day to expiration line. The first “X”
represents a 30 day option while the second “X” represents a 60
day option. If you look closely at this chart you will s
SEO - How To Calculate the Bandwidth and Disk Space For Your Website
One important aspect of search engine optimization is functionality and of course that means that your site must always be up and running. This means choosing a host that will provide you with all of the web space that you will need to keep all of the features that you have on your site running twenty four hours a day and seven days a week.The best web hosting services will offer at least 20-80GB of disk space for a regular account and more for premium or advanced accounts. You know you are dealing with a lousy web hosting company if they offer less disk space than
Time spreads can be a profitable investment strategy if youOne important aspect of search engine optimization is functionality and of course that means that your site must always be up and running. This means choosing a host that will provide you with all of the web space that you will need to keep all of the features that you have on your site running twenty four hours a day and seven days a week.The best web hosting services will offer at least 20-80GB of disk space for a regular account and more for premium or advanced accounts. You know you are dealing with a lousy web hosting company if they offer less disk space than
understand the concept of time decay.
A time spread is designed to take advantage of the fact that an
option’s decay curve is non-linear; that is, an option’s value
does not decay evenly over time. As an option gets closer to
expiration, its rate of decay increases meaning the option loses
value more quickly. That decay rate increases progressively day
after day until expiration.
An option’s decay rate begins to accelerate when the option is
about 45 days out. It picks up steam at 30 days out and really
comes under decay pressure at about 15 days out. This scenario
can be likened to a boulder rolling down from the top of a hill.
As it starts, it rolls slowly and then gains more and more speed
and momentum the further it gets down the hill until it achieves
its maximum speed at the bottom.
Option decay acts the same way- gathering speed and momentum as
the option approaches expiration. In time spreads, both options
have the same strike price that remains constant.
However, each option’s value decays at different rates and over
different lengths of time. The option with one month until
expiration experiences value decay at a faster rate than the
value of an option that has three months until expiration.
If you buy an option with three months to go and sell an option
with the same strike but with one month to go you have set up a
spread between the two options values (prices). As time passes,
your short option loses value more quickly than your long option
that decays more slowly. The value of the spread widens and you
profit from that spread’s expansion. This is the fundamental
behavior of the time-spread.
The above chart shows an option decay graph. The numbers across
the bottom represent days to expiration. Along the decay line,
you will notice an “X” at the 30 day to expiration line and
another “X” at the 60 day to expiration line. The first “X”
represents a 30 day option while the second “X” represents a 60
day option. If you look closely at this chart you will se
Offsite Links on Your Website - Should They Open in New Windows?
There is an ongoing debate about whether offsite links should automatically open up in new browser windows.I believe that they should.An offsite or external link is one that leads your visitors to another domain, separate and apart from your own website. It is similar to reading one book and then opening another. Your website is the original book and the offsite link is the second.1) Am I causing visitor confusion?A well-known author purports that when visitors enter one’s web site, they should never be made to feel “confused” by offsite
>
after day until expiration.There is an ongoing debate about whether offsite links should automatically open up in new browser windows.I believe that they should.An offsite or external link is one that leads your visitors to another domain, separate and apart from your own website. It is similar to reading one book and then opening another. Your website is the original book and the offsite link is the second.1) Am I causing visitor confusion?A well-known author purports that when visitors enter one’s web site, they should never be made to feel “confused” by offsite
An option’s decay rate begins to accelerate when the option is
about 45 days out. It picks up steam at 30 days out and really
comes under decay pressure at about 15 days out. This scenario
can be likened to a boulder rolling down from the top of a hill.
As it starts, it rolls slowly and then gains more and more speed
and momentum the further it gets down the hill until it achieves
its maximum speed at the bottom.
Option decay acts the same way- gathering speed and momentum as
the option approaches expiration. In time spreads, both options
have the same strike price that remains constant.
However, each option’s value decays at different rates and over
different lengths of time. The option with one month until
expiration experiences value decay at a faster rate than the
value of an option that has three months until expiration.
If you buy an option with three months to go and sell an option
with the same strike but with one month to go you have set up a
spread between the two options values (prices). As time passes,
your short option loses value more quickly than your long option
that decays more slowly. The value of the spread widens and you
profit from that spread’s expansion. This is the fundamental
behavior of the time-spread.
The above chart shows an option decay graph. The numbers across
the bottom represent days to expiration. Along the decay line,
you will notice an “X” at the 30 day to expiration line and
another “X” at the 60 day to expiration line. The first “X”
represents a 30 day option while the second “X” represents a 60
day option. If you look closely at this chart you will s
Maintaining Good Relationships With Vendors
Maintaining a good relationship with your vendors is crucial to your business. Some ways to maintain good vendor relationships are described below:1) Dedicated Manager: A dedicated team leader or product manager will help maintain good vendor relationships by keeping track of the progress of each team or vendor. He or she helps keep all channels of communication open and this avoids miscommunication of any kind.2) Progress Report: Insist on getting detailed progress reports from vendors periodically. This helps you solves glitches and problems of any kind a
>
its maximum speed at the bottom.Maintaining a good relationship with your vendors is crucial to your business. Some ways to maintain good vendor relationships are described below:1) Dedicated Manager: A dedicated team leader or product manager will help maintain good vendor relationships by keeping track of the progress of each team or vendor. He or she helps keep all channels of communication open and this avoids miscommunication of any kind.2) Progress Report: Insist on getting detailed progress reports from vendors periodically. This helps you solves glitches and problems of any kind a
Option decay acts the same way- gathering speed and momentum as
the option approaches expiration. In time spreads, both options
have the same strike price that remains constant.
However, each option’s value decays at different rates and over
different lengths of time. The option with one month until
expiration experiences value decay at a faster rate than the
value of an option that has three months until expiration.
If you buy an option with three months to go and sell an option
with the same strike but with one month to go you have set up a
spread between the two options values (prices). As time passes,
your short option loses value more quickly than your long option
that decays more slowly. The value of the spread widens and you
profit from that spread’s expansion. This is the fundamental
behavior of the time-spread.
The above chart shows an option decay graph. The numbers across
the bottom represent days to expiration. Along the decay line,
you will notice an “X” at the 30 day to expiration line and
another “X” at the 60 day to expiration line. The first “X”
represents a 30 day option while the second “X” represents a 60
day option. If you look closely at this chart you will s
Developing a Contact List- Part Two
In a previous installment, we spoke about how to come up with a list of persons you currently know. Although everyone on that list will not necessarily become your client, everyone can lead you to clients. In this section, we will talk about how to get referrals from all of the people on your contact list and what to do once you have those referrals.Most people will not feel comfortable giving you referrals until they know how you intend to handle these contacts. No one wants to refer you someone that you are too aggressive with, that you take advantage of, or for w
an option that has three months until expiration.In a previous installment, we spoke about how to come up with a list of persons you currently know. Although everyone on that list will not necessarily become your client, everyone can lead you to clients. In this section, we will talk about how to get referrals from all of the people on your contact list and what to do once you have those referrals.Most people will not feel comfortable giving you referrals until they know how you intend to handle these contacts. No one wants to refer you someone that you are too aggressive with, that you take advantage of, or for w
If you buy an option with three months to go and sell an option
with the same strike but with one month to go you have set up a
spread between the two options values (prices). As time passes,
your short option loses value more quickly than your long option
that decays more slowly. The value of the spread widens and you
profit from that spread’s expansion. This is the fundamental
behavior of the time-spread.
The above chart shows an option decay graph. The numbers across
the bottom represent days to expiration. Along the decay line,
you will notice an “X” at the 30 day to expiration line and
another “X” at the 60 day to expiration line. The first “X”
represents a 30 day option while the second “X” represents a 60
day option. If you look closely at this chart you will s
Make Money On eBay - Turn Traffic Into Buyers For Your Listings
Those who make money on eBay know that to obtain the highest price possible, there must be mountains of traffic viewing their items. Even more important is that the traffic must be looking for the items. Finally the traffic must be able to afford to purchase the items. Then they see your listing and do make a purchase. But just how is that accomplished?It all starts by knowing the rules, guidelines and policies. Don’t expect to make money on eBay if you are continually failing to follow the policies associated with listings.Next comes selecting the right cate
the fundamentalThose who make money on eBay know that to obtain the highest price possible, there must be mountains of traffic viewing their items. Even more important is that the traffic must be looking for the items. Finally the traffic must be able to afford to purchase the items. Then they see your listing and do make a purchase. But just how is that accomplished?It all starts by knowing the rules, guidelines and policies. Don’t expect to make money on eBay if you are continually failing to follow the policies associated with listings.Next comes selecting the right cate
behavior of the time-spread.
The above chart shows an option decay graph. The numbers across
the bottom represent days to expiration. Along the decay line,
you will notice an “X” at the 30 day to expiration line and
another “X” at the 60 day to expiration line. The first “X”
represents a 30 day option while the second “X” represents a 60
day option. If you look closely at this chart you will see the
nature of the time spread.
Let’s say you are long the 60-30 day time spread. That means you
are long the 60 day option and short the 30 day option. Further,
we will assign a price of $3.00 to the 60 day option and $2.00
to the 30 day option. Since you pay for the one and receive
payment for the other the bottom line cost of what you put out
for the spread is $1.00.
Now, look at the slope of the line (representing decay) drawn
from the 60 day option to the 30 day option. Compare the slope
of that line to the slope of the line drawn from the 30 day
option to expiration (Day 0). As you can see, there is a big
difference in the steepness of the slope of the two lines. The
slope of the line drawn between the 30 day option to expiration
is much steeper than the slope of the line drawn from the 60 day
option to the 30 day option.
These slopes show how the time spread works! During the first 30
day period of time, the 30 day option has a steeper slope,
meaning a higher rate of decay. During that 30 day period, this
option will go from $2.00 to $0. Meanwhile, the 60 day option,
having a flatter slope will not decay as quickly.
During the same 30 day period, it goes from $3.00 to $2.00.
Remember, the spread’s bottom line cost was $1.00. The 30 day
option (now expired) will be worth $0 while the 60 day option
(now 30 day option) will be worth $2.00. If you had invested in
this spread, after 30 days decay you would be holding one option
worth $2.00. The investment has provided a nice return!
However, this is an ideal situation. The stock price and
volatility remain constant and you capture the decay. The time
spread
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