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Digg it UP - Vertical Spreads - Getting Out or Rolling the Position
Get The Decision To Buy
A critical key to persuasion is to understand and use dissonance. You always want your prospect to feel they made the decision, and they persuaded themselves. That is why we say internal pressure is the secret. Let the rubber band stretch. When talking to a prospect you want them to make a decision as soon as possible. They don’t need to know everything about your product or service. Get them involved and fill in the blanks later. Before they buy your product of service, they are looking for reasons not to do it. After they have made a decision to purchase, they are
somewhat mitigated, but stillA critical key to persuasion is to understand and use dissonance. You always want your prospect to feel they made the decision, and they persuaded themselves. That is why we say internal pressure is the secret. Let the rubber band stretch. When talking to a prospect you want them to make a decision as soon as possible. They don’t need to know everything about your product or service. Get them involved and fill in the blanks later. Before they buy your product of service, they are looking for reasons not to do it. After they have made a decision to purchase, they are
there none the less.
The catch is the proximity of the stock to the out-of-the-money
option. If the stock is close to the out-of-the-money option,
you would be best advised to trade out of the spread entirely.
Again, as stated before, if the stock closes either with the
spread fully in-the-money, or fully out-of-the-money, the
position will adjust itself through the exercise process leaving
no residual position. If the stock price finishes between the
two strikes, there will be a residual position. We discussed
above how to trade out of this position. Your second choice is
not to trade out and allow yourself to go through the expiration
process. You must remember that if you are going to accept a
residual stock position, you must be able to afford it.
Starting an Import/Export Business? 4 Questions You Must Ask Yourself First
A game my 8-year old son and I love to play in a department store is to race to be the first to find an item that is Made in the U.S.A. Sometimes the race takes more than 60 seconds. Try it yourself. Our marketplace has turned into a global bazaar. Shirts made in Honduras, mangoes from the Philippines, dog collars made in Indonesia, Italian leather handbags made in China. In this day and age, importing from abroad is not just good business sense, it is necessary for survival.But you don’t want to be just a consumer at the end of the growing multi-billion-do
The selection and management of a vertical spread are onlyA game my 8-year old son and I love to play in a department store is to race to be the first to find an item that is Made in the U.S.A. Sometimes the race takes more than 60 seconds. Try it yourself. Our marketplace has turned into a global bazaar. Shirts made in Honduras, mangoes from the Philippines, dog collars made in Indonesia, Italian leather handbags made in China. In this day and age, importing from abroad is not just good business sense, it is necessary for survival.But you don’t want to be just a consumer at the end of the growing multi-billion-do
two-thirds of the game. Closing out, rolling or morphing the
position has to be analyzed and executed with the same due
diligence as was used in the selection and management processes.
Looking at the closing out of a vertical call spread, we find
there are three possible outcomes that must be addressed. The
spread can finish out-of-the-money and valueless. For a call
spread, this scenario occurs when the stock closes at or below
the lower strike of the spread. In this scenario, in order to
close out the spread, one would just let it expire. Both options
finish out of the money so no residual position will be left
over.
If the spread finishes fully in the money, (at maximum value)
that is with both options in-the-money, then both options will
be exercised. You will exercise your long call and your short
call will be assigned. They will cancel each other out and you
will be left with no residual position. This scenario occurs
when the stock price closes lower than the lower strike call
involved in the spread.
The difficult scenario is when the stock closes in between the
two strikes of the spread. This scenario, the closing of the
stock between the two strikes creates a situation where one
strike winds up being in-the-money while the other ends up
out-of-the-money.
When both options expire in-the-money, they are both
exercised-one creating a long stock option, the other creating a
short position thus canceling each other out. This is not the
case here. Here, one option, the one that is in-the-money will
leave a residual stock position and since the other option is
out-of-the-money, it will not be able to be used to offset the
residual stock position created by the expiring in-the-money
option.
There are two actions that could be taken. Choice number one
involves trading out of the spread on expiration Friday just
before the close. Because of the bid/ask spread of the two
options, you will probably have to give away some of your
profits in order to close out the position.
Giving up a portion of the profits may be the best thing to do
in order to avoid naked, unlimited risk.
If you only trade out of the in-the-money option, you run the
risk (albeit short-lived because you are doing this late on
expiration day of the expiring month) that the stock moves
adversely and the out-of-the-money option suddenly becomes
in-the-money. If that happens, you will now be naked the
residual stock position. Of course, if there is still time, you
could always trade out of the option then but that is very
risky. However, if the stock is at a relatively safe distance
from the out-of-the-money you may want to just close out the
in-the-money option and let the out-of-the money option expire
worthless.
The two factors that must be considered are: the combination of
the distance of the strike from the stock price in relation to
the short amount of time for the stock to get there, and the
amount of money saved by not buying back the out-of-the-money
option. Remember, this is being done at the very end of the day
on expiration day. These options only have minutes of life left.
So, knowing this, the risk is somewhat mitigated, but still
there none the less.
The catch is the proximity of the stock to the out-of-the-money
option. If the stock is close to the out-of-the-money option,
you would be best advised to trade out of the spread entirely.
Again, as stated before, if the stock closes either with the
spread fully in-the-money, or fully out-of-the-money, the
position will adjust itself through the exercise process leaving
no residual position. If the stock price finishes between the
two strikes, there will be a residual position. We discussed
above how to trade out of this position. Your second choice is
not to trade out and allow yourself to go through the expiration
process. You must remember that if you are going to accept a
residual stock position, you must be able to afford it.
6 Performance Measure Facilitator Attributes
Over the last 5 or so years, there seems to be an ever-increasing number of organisations that are creating a new role in the corporate office: the Performance Measurement Officer. Actually, the title of this role varies from organisation to organisation, and where exactly in the organisation structure that role is placed also varies.Titles for performance measure facilitator positions have included Performance Measurement Officer, Performance Measurement Director, Manager Performance Measurement, Corporate Planning and Performance Reporting Officer, Corporate Performance Management
ions willOver the last 5 or so years, there seems to be an ever-increasing number of organisations that are creating a new role in the corporate office: the Performance Measurement Officer. Actually, the title of this role varies from organisation to organisation, and where exactly in the organisation structure that role is placed also varies.Titles for performance measure facilitator positions have included Performance Measurement Officer, Performance Measurement Director, Manager Performance Measurement, Corporate Planning and Performance Reporting Officer, Corporate Performance Management
be exercised. You will exercise your long call and your short
call will be assigned. They will cancel each other out and you
will be left with no residual position. This scenario occurs
when the stock price closes lower than the lower strike call
involved in the spread.
The difficult scenario is when the stock closes in between the
two strikes of the spread. This scenario, the closing of the
stock between the two strikes creates a situation where one
strike winds up being in-the-money while the other ends up
out-of-the-money.
When both options expire in-the-money, they are both
exercised-one creating a long stock option, the other creating a
short position thus canceling each other out. This is not the
case here. Here, one option, the one that is in-the-money will
leave a residual stock position and since the other option is
out-of-the-money, it will not be able to be used to offset the
residual stock position created by the expiring in-the-money
option.
There are two actions that could be taken. Choice number one
involves trading out of the spread on expiration Friday just
before the close. Because of the bid/ask spread of the two
options, you will probably have to give away some of your
profits in order to close out the position.
Giving up a portion of the profits may be the best thing to do
in order to avoid naked, unlimited risk.
If you only trade out of the in-the-money option, you run the
risk (albeit short-lived because you are doing this late on
expiration day of the expiring month) that the stock moves
adversely and the out-of-the-money option suddenly becomes
in-the-money. If that happens, you will now be naked the
residual stock position. Of course, if there is still time, you
could always trade out of the option then but that is very
risky. However, if the stock is at a relatively safe distance
from the out-of-the-money you may want to just close out the
in-the-money option and let the out-of-the money option expire
worthless.
The two factors that must be considered are: the combination of
the distance of the strike from the stock price in relation to
the short amount of time for the stock to get there, and the
amount of money saved by not buying back the out-of-the-money
option. Remember, this is being done at the very end of the day
on expiration day. These options only have minutes of life left.
So, knowing this, the risk is somewhat mitigated, but still
there none the less.
The catch is the proximity of the stock to the out-of-the-money
option. If the stock is close to the out-of-the-money option,
you would be best advised to trade out of the spread entirely.
Again, as stated before, if the stock closes either with the
spread fully in-the-money, or fully out-of-the-money, the
position will adjust itself through the exercise process leaving
no residual position. If the stock price finishes between the
two strikes, there will be a residual position. We discussed
above how to trade out of this position. Your second choice is
not to trade out and allow yourself to go through the expiration
process. You must remember that if you are going to accept a
residual stock position, you must be able to afford it.
Customer Satisfaction and the Service Business
The relationship between customer satisfaction and success of a service business is a direct one. Customer satisfaction measurement, however, is a much more complex matter. Customer satisfaction is a qualitative assessment of the services you provide, and therefore it is a surrogate measure of the value of your services to your customers.The measurement method you choose can make makes a difference to the results obtained. Your motivation for measuring customer satisfaction will drive both your methodology for collecting the data, and what you do with it.Client satisfaction d
residual stock position and since the other option isThe relationship between customer satisfaction and success of a service business is a direct one. Customer satisfaction measurement, however, is a much more complex matter. Customer satisfaction is a qualitative assessment of the services you provide, and therefore it is a surrogate measure of the value of your services to your customers.The measurement method you choose can make makes a difference to the results obtained. Your motivation for measuring customer satisfaction will drive both your methodology for collecting the data, and what you do with it.Client satisfaction d
out-of-the-money, it will not be able to be used to offset the
residual stock position created by the expiring in-the-money
option.
There are two actions that could be taken. Choice number one
involves trading out of the spread on expiration Friday just
before the close. Because of the bid/ask spread of the two
options, you will probably have to give away some of your
profits in order to close out the position.
Giving up a portion of the profits may be the best thing to do
in order to avoid naked, unlimited risk.
If you only trade out of the in-the-money option, you run the
risk (albeit short-lived because you are doing this late on
expiration day of the expiring month) that the stock moves
adversely and the out-of-the-money option suddenly becomes
in-the-money. If that happens, you will now be naked the
residual stock position. Of course, if there is still time, you
could always trade out of the option then but that is very
risky. However, if the stock is at a relatively safe distance
from the out-of-the-money you may want to just close out the
in-the-money option and let the out-of-the money option expire
worthless.
The two factors that must be considered are: the combination of
the distance of the strike from the stock price in relation to
the short amount of time for the stock to get there, and the
amount of money saved by not buying back the out-of-the-money
option. Remember, this is being done at the very end of the day
on expiration day. These options only have minutes of life left.
So, knowing this, the risk is somewhat mitigated, but still
there none the less.
The catch is the proximity of the stock to the out-of-the-money
option. If the stock is close to the out-of-the-money option,
you would be best advised to trade out of the spread entirely.
Again, as stated before, if the stock closes either with the
spread fully in-the-money, or fully out-of-the-money, the
position will adjust itself through the exercise process leaving
no residual position. If the stock price finishes between the
two strikes, there will be a residual position. We discussed
above how to trade out of this position. Your second choice is
not to trade out and allow yourself to go through the expiration
process. You must remember that if you are going to accept a
residual stock position, you must be able to afford it.
6 Ways To Squeeze More Profits From Blogging
Niche and business blogs have become an important marketing tool for Internet businesses. That being said, how do you increase the profitability of your blogs?Here are 6 ways:1) Use picturesWhenever possible, use pictures to demonstrate a point or just to liven up the blog. Pictures speak a thousand words and people relate well to good pictures that make them think.2) Always be consistentMake sure your posts don’t veer of course from the blog’s theme. Also, try to blog often so that you will stay in your reader’s minds. Blog readers like to read blogs whi
suddenly becomesNiche and business blogs have become an important marketing tool for Internet businesses. That being said, how do you increase the profitability of your blogs?Here are 6 ways:1) Use picturesWhenever possible, use pictures to demonstrate a point or just to liven up the blog. Pictures speak a thousand words and people relate well to good pictures that make them think.2) Always be consistentMake sure your posts don’t veer of course from the blog’s theme. Also, try to blog often so that you will stay in your reader’s minds. Blog readers like to read blogs whi
in-the-money. If that happens, you will now be naked the
residual stock position. Of course, if there is still time, you
could always trade out of the option then but that is very
risky. However, if the stock is at a relatively safe distance
from the out-of-the-money you may want to just close out the
in-the-money option and let the out-of-the money option expire
worthless.
The two factors that must be considered are: the combination of
the distance of the strike from the stock price in relation to
the short amount of time for the stock to get there, and the
amount of money saved by not buying back the out-of-the-money
option. Remember, this is being done at the very end of the day
on expiration day. These options only have minutes of life left.
So, knowing this, the risk is somewhat mitigated, but still
there none the less.
The catch is the proximity of the stock to the out-of-the-money
option. If the stock is close to the out-of-the-money option,
you would be best advised to trade out of the spread entirely.
Again, as stated before, if the stock closes either with the
spread fully in-the-money, or fully out-of-the-money, the
position will adjust itself through the exercise process leaving
no residual position. If the stock price finishes between the
two strikes, there will be a residual position. We discussed
above how to trade out of this position. Your second choice is
not to trade out and allow yourself to go through the expiration
process. You must remember that if you are going to accept a
residual stock position, you must be able to afford it.
The Apprentice Is A Tough Love Lesson In Workplace Relationships
Some financial and business educators encourage their students to watch whatever incarnation of ‘The Apprentice’ happens to be available hoping they will pick up on some of the methods, ideas and solutions presented. Others believe that the series offers nothing in terms of business and financial education. In fact, many in the world of business write the show off as a series of staged events designed to cash in on reality show popularity and promote whatever product of the week that Trump happens to be hawking. All these viewpoints have valid arguments, but they are missing the real lesso
somewhat mitigated, but stillSome financial and business educators encourage their students to watch whatever incarnation of ‘The Apprentice’ happens to be available hoping they will pick up on some of the methods, ideas and solutions presented. Others believe that the series offers nothing in terms of business and financial education. In fact, many in the world of business write the show off as a series of staged events designed to cash in on reality show popularity and promote whatever product of the week that Trump happens to be hawking. All these viewpoints have valid arguments, but they are missing the real lesso
there none the less.
The catch is the proximity of the stock to the out-of-the-money
option. If the stock is close to the out-of-the-money option,
you would be best advised to trade out of the spread entirely.
Again, as stated before, if the stock closes either with the
spread fully in-the-money, or fully out-of-the-money, the
position will adjust itself through the exercise process leaving
no residual position. If the stock price finishes between the
two strikes, there will be a residual position. We discussed
above how to trade out of this position. Your second choice is
not to trade out and allow yourself to go through the expiration
process. You must remember that if you are going to accept a
residual stock position, you must be able to afford it.
Then, if you have 10 July 50 calls and you exercise them you
will be receiving 1000 shares of stock at $50.00 per share.
Thus, you must have $50,000.00 of cash and/or margin in your
account to receive the stock. If you do not have enough cash
and/or margin to accept delivery of the stock, then you must
trade out of the position before it expires.
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