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Casual Articles - Can You Play Time Decay?
Establishing and maintaining clear written policies and procedures is one of the key factor is having a successful business. Even if you have just one employee, you need written procedures to prevent mistakes.Most people it seems would rather eat dirt than sit down and write a policy and pr
But what if it doesn't go down? What if it just sits there? Ahh, that's just as good. Why? Because the time portion of the premium is eroding. let me give an example ( a very basic example). Lets say the XYZ stock
We all seem to know someone with the gift of gab. The just seem to naturally know how to make a conversation flow; even if it’s with someone they are just meeting for the first time.Here are some tips on how to make conversation flow by concentrating on why we talk to each other in the firs
So, if time decay causes the price of a call option to fade, is this something we can play? Yes it is. A better question is, "should you?" Like many questions about the market the answer isn't easy to spout off. I know people that have done quite well with this strategy, but naturally, it comes with risk. (doesn't it all?)
The most common practice is to sell a call option. Lets say you really see no reason for a company to move higher. Better yet you see a good reason for it to go lower. So, you sell a call option against that stock. Instantly you have taken in a premium. Now if the stock goes down, you can either buy the call back for less money, and pocket the profit, or try and ride it to "0" and keep all the premium.
But what if it doesn't go down? What if it just sits there? Ahh, that's just as good. Why? Because the time portion of the premium is eroding. let me give an example ( a very basic example). Lets say the XYZ stock
When you minimize risk in purchasing decisions a lot more people are willing to say "yes". Once they sample your product or service, if it performs as you say, most customers will keep that product and continue buying again and again.Here's a little story to illustrate my point.
The most common practice is to sell a call option. Lets say you really see no reason for a company to move higher. Better yet you see a good reason for it to go lower. So, you sell a call option against that stock. Instantly you have taken in a premium. Now if the stock goes down, you can either buy the call back for less money, and pocket the profit, or try and ride it to "0" and keep all the premium.
But what if it doesn't go down? What if it just sits there? Ahh, that's just as good. Why? Because the time portion of the premium is eroding. let me give an example ( a very basic example). Lets say the XYZ stock
There are literally hundreds of places out there that will list out eBay selling tip after tip. Complicating a process that’s pretty simple, the many eBay selling tip ideas out there might be good, but they don’t top the most important eBay selling tip by a long shot.The key to being succes
The most common practice is to sell a call option. Lets say you really see no reason for a company to move higher. Better yet you see a good reason for it to go lower. So, you sell a call option against that stock. Instantly you have taken in a premium. Now if the stock goes down, you can either buy the call back for less money, and pocket the profit, or try and ride it to "0" and keep all the premium.
But what if it doesn't go down? What if it just sits there? Ahh, that's just as good. Why? Because the time portion of the premium is eroding. let me give an example ( a very basic example). Lets say the XYZ stock
The advent of the New Media and Internet have increased possibilities of online marketing and internet retailing with new features of interactive shopping, pod casting and e-marketing. Consumers are connected to online shopping sites with WiFi, Internet or 3G mobile phones. E commerce has taken a
But what if it doesn't go down? What if it just sits there? Ahh, that's just as good. Why? Because the time portion of the premium is eroding. let me give an example ( a very basic example). Lets say the XYZ stock
If you want to make a substantial income on the Internet, you will need your own website. You do not necessarily need your own product, but it definitely helps to have your own website. Those of us that have a website are left with the age old question of how to bring traffic to them. There are
But what if it doesn't go down? What if it just sits there? Ahh, that's just as good. Why? Because the time portion of the premium is eroding. let me give an example ( a very basic example). Lets say the XYZ stock is at 50.00. You see no reason for it to move higher at all, in fact it could go down. So, you see the 60 dollar XYZ July calls are a dollar. So, you "sell" ten contracts of XYZ 60 dollar calls. "boom" you just took in 1000 dollars.
Now if XYZ the stock goes to 40 dollars, those calls are going to fall in value and eventually expire worthless. You get to keep the full 1000 dollars. But and this is neat, if XYZ just sits between 50 and 54 you will still make money. How? Since the stock is below the strike price you sold, it's still a worthless option and you get to keep the premium.
So, in a flat to fading market, selling calls is about the best thing one can do to bring in the bucks. But like all things, there is risk. If the call you sell happens to go higher and higher, it's going to cost you plenty. You'll have to cancel the contracts by buying them back at a higher price than you sold them at. That hurts.
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