SubscribeAll Posts Tagged With: "market volatility"
Are You Buying The Right Options? These Four Areas Will Tell You…
In last week’s issue, I covered the profitable and simplistic world of LEAPS trading – a simple way to trade, using long-term options that have an expiration date of one to three years.
And it’s this time component that is a critical factor when it comes to valuing the price of a LEAP option and the amount of risk involved.
An option’s price is determined by a computer program – either the Options Pricing Model or the Black-Scholes Model. Black, Scholes and Merton developed the latter model in the 1970s, winning a Nobel Prize for it.
Essentially, though, both models take the same main…
19Aug2009 | Smart Profits Report | 0 comments | ContinuedTwo Ways To Make Money From Market Volatility
The stock market is a volatile, unforgiving beast. Now more than ever. The current rally aside, it’s eating many investors’ portfolios alive – and may well do so again in the near future.
The question is, though… has this hurt you or actually helped you?
You may be surprised to learn that you can actually harness market volatility and make it work for you, not against you, allowing you to recoup losses and even make money.
Do you know how to do it?
The truth is… the stock market hates volatility. And suffice it to say that investors also loath…
25Mar2009 | Smart Profits Report | 0 comments | ContinuedThe Numbers Don’t Lie: Why A Bull Market Will Arrive Sooner Than You Think
I’ve been spending the past two weeks intently trying to make sense of the dramatic shifts in our financial markets, the U.S. economy, and even our societal mood.
The news is not good.
In fact, a friend of mine who’s an investment banker summed up the current conditions best, using just one word: “Brutal.”
She reports that her business hasn’t just slowed… it’s at a complete standstill. As a result, she and her colleagues won’t receive any bonus this year.
Meanwhile, the mainstream media continue to rant and rave, almost relishing the situation. A popular radio talk show host is predicting financial Armageddon in…
9Dec2008 | Smart Profits Report | 0 comments | ContinuedUnprecedented Volatility Will Continue to Rock the Stock Market in Advance of a Possible Rebound in Mid-2009
In the 20 years I’ve been creating stock-market forecasts, I’ve never seen such a contradictory set of forces at work in the markets all at one time. I could just as easily make the case that we’re finally nearing a bottom, as I could that we’re in for protracted downturn punctuated by sharp, quick drops.
The only question in my mind is what shape an eventual recovery will take, for I see three possibilities:
- A “U,” with a slow, methodical reversal that gradually transitions into a market rebound.
- A “V,” with a quick, sharp reversal that marks the start of a powerful…
Rick Rule on Commodities: Be Prudent, Study Hard, and Take Advantage of Volatility
Source: The Gold Report
Investor Rick Rule, founder of Global Resource Investments, is legendary in the mining, energy, and exploration business. In this edited transcript from a presentation (10/10/08) for clients, Rule shares his thoughts on the current situation. Rick founded GRI in the late 1970s, in middle of a commodities price boom, and led it though the subsequent recession of the early 1980s and all the economic ups and downs since then. The excerpt below, edited for length and clarity, focuses on his outlook for commodities.
. . . I expect the outlook for commodities to be good relative to other…
7Nov2008 | The Gold Report | 1 comment | Continued
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