/investing

The U.S. Securities and Exchange Commission has hit Goldman Sachs with some serious charges, and this leaves the company in a precarious situation. It is not clear how the company’s investors and account holders will react. Analysis shows that it is highly unlikely that Goldman Sachs will meet a similar fate as Bear Stearns and [...]

Good morning Dr. FeelGood…please meet my financial advisor, Mary Jane! A few savvy investors, rogues in the field, may be wondering how to invest in the new green economy, Medical Marijuana. Expect low returns and uncertain futures for investments of the few Pink Sheet stocks available, most notably Medical Marijuana Inc (OTC: CVIV). Rising out [...]

China has made great strides in the race for the most powerful country in the world and it has begun to rival America on a number of fronts. While investing in China carries some risks, it is still proving to be an attractive investment alternative for many aggressive investors. The Peoples Republic of China is [...]

We have had a pretty nice run in the markets but appear to be back to chop mode. So where do you look for some opportunity for return, while not worrying as you spend more time outside enjoying the good weather? One place is utility stocks. The idea is that, regardless of how the economy [...]

Rho, the Greek that tracks interest changes, could impact the price of your option. Insight into this Greek variable is discussed at TradeKing. Given that Rho represents the change in the price of an option with respect to a change in interest rates then you can infer it relates to opportunity costs of allocating your [...]

To see some of the basics of how options are re-evaluated when stock splits take place, see the following discussion at TradeKing. However, I like to focus on what brings on a stock split and what kind of opportunities that presents for option traders. When a company announces a stock split, it typically acts as [...]

As discussed at TradeKing, staying mentally tough in a trading environment can be challenging at times. Here are some tips and advice on being able to effectively handle this side of the trading business, especially in volatile times. First, as a trader you have to have a trading plan. The plan should specifically spell out [...]

With the tough economic conditions, President Barack Obama and members of the Congress have agreed that the country needs some financial reform to prevent some of the reckless actions that led to a financial meltdown. Regulating the areas of financial services that contributed to the financial woes is paramount and reform is sorely needed. Mortgage [...]

We often speak about volatility, strike prices, interest rates and days to expiration or time value when it comes to option prices, but we rarely talk about the distinct impact that dividends have on option prices. One really good discussion about this relationship can be found at TradeKing. The primary impact to understand is that [...]

Recently, TradeKing’s Brian Overby had a nice discussion on the option Greek delta. Delta is a very important concept for an option trader to master. With that said, lets highlight some of the more salient points about this key Greek variable. Delta is a measure of the change in the price of your option relative [...]