Tradetoprofit.in | How to trade options ?
What is an Option?
An option is a contract to buy or sell a specific financial product officially known as the option's underlying instrument or underlying interest. For equity options, the underlying instrument is a stock, exchange-traded fund (ETF), or similar product. The contract itself is very precise. It establishes a specific price, called the strike price, at which the contract may be exercised, or acted on. And it has an expiration date. When an option expires, it no longer has value and no longer exists.
Options come in two varieties, calls and puts, and you can buy or sell either type. You make those choices - whether to buy or sell and whether to choose a call or a put - based on what you want to achieve as an options investor.
Buying and Selling
If you buy a call, you have the right to buy the underlying instrument at the strike price on or before the expiration date. If you buy a put, you have the right to sell the underlying instrument on or before expiration. In either case, as the option holder, you also have the right to sell the option to another buyer during its term or to let it expire worthless.
The situation is different if you write, or "sell to open", an option. Selling to open a short option position obligates you, the writer, to fulfill your side of the contract if the holder wishes to exercise. When you sell a call as an opening transaction, you're obligated to sell the underlying interest at the strike price, if you're assigned. When you sell a put as an opening transaction, you're obligated to buy the underlying interest, if assigned. As a writer, you have no control over whether or not a contract is exercised, and you need to recognize that exercise is always possible at any time until the expiration date. But just as the buyer can sell an option back into the market rather than exercising it, as a writer you can purchase an offsetting contract, provided you have not been assigned, and end your obligation to meet the terms of the contract. When offsetting a short option position, you would enter a "buy to close" transaction.
At a Premium
When you buy an option, the purchase price is called the premium. If you sell, the premium is the amount you receive. The premium isn't fixed and changes constantly - so the premium you pay today is likely to be higher or lower than the premium yesterday or tomorrow. What those changing prices reflect is the give and take between what buyers are willing to pay and what sellers are willing to accept for the option. The point at which there's agreement becomes the price for that transaction, and then the process begins again.
If you buy options, you start out with what's known as a net debit. That means you've spent money you might never recover if you don't sell your option at a profit or exercise it. And if you do make money on a transaction, you must subtract the cost of the premium from any income you realize to find your net profit.
As a seller, on the other hand, you begin with a net credit because you collect the premium. If the option is never exercised, you keep the money. If the option is exercised, you still get to keep the premium, but are obligated to buy or sell the underlying stock if you're assigned.
The Value of Options
What a particular options contract is worth to a buyer or seller is measured by how likely it is to meet their expectations. In the language of options, that's determined by whether or not the option is, or is likely to be, in-the-money or out-of-the-money at expiration. A call option is in-the-money if the current market value of the underlying stock is above the exercise price of the option, and out-of-the-money if the stock is below the exercise price. A put option is in-the-money if the current market value of the underlying stock is below the exercise price and out-of-the-money if it is above it. If an option is not in-the-money at expiration, the option is assumed to be worthless.
An option's premium has two parts: an intrinsic value and a time value. Intrinsic value is the amount by which the option is in-the-money. Time value is the difference between whatever the intrinsic value is and what the premium is. The longer the amount of time for market conditions to work to your benefit, the greater the time value.
Options Prices
Several factors, including supply and demand in the market where the option is traded, affect the price of an option, as is the case with an individual stock. What's happening in the overall investment markets and the economy at large are two of the broad influences. The identity of the underlying instrument, how it traditionally behaves, and what it is doing at the moment are more specific ones. Its volatility is also an important factor, as investors attempt to gauge how likely it is that an option will move in-the-money.
House Committee Targets Wolves, Walruses and Other Wildlife
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Animal-World Newsletter 6 new articles in "Dr. Jungle's Pets and Animal Speak"
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Hiya omsstravel.33333@blogger.com! Dr. Jungle says... "They could be too cute to be true, stunninginly beautiful,
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6 new articles in "Dr. Jungle's Pets and Animal Speak" How to Choose an Aquarium for your Fish
One size doesn't fit all when it comes to fish and their aquarium homes. Here are some tips to help you to find the right fit for your little underwater dwellers. Finding a home for your fish is like the chicken and the egg. Which comes first? Do you fit the aquarium to the fish or the fish to the aquarium? Getting Started The best plan of attack is to choose your fish first. This will dictate a lot of the decisions you need to make later and make them a bit easier. Here's why. Let's say that you have a flair for the exotic and want a baby shark. First of all you will need a saltwater tank and that requires a much larger investment and set up than a first-time fish owner may want. Your baby shark wouldn't be happy in a traditional rectangular fish tank. So, begin with your fish. Here are a few questions you might want to keep in mind. Where do I live? – For an apartment, you might not want to invest in a large 50 gallon aquarium full of fish that requires lots of maintenance. If for some reason it cracks, not only your apartment, but several other people’s will be affected. How much space do I have? – If you only have a small living room or limited space in the bedroom for a tank, choosing a smaller fish that can survive in a limited habitat might be better for you. How much money do I want to invest? – The more exotic the fish, the more you will spend keeping them alive. Fish are pets and they do need constant care. It might not be as much as a dog, but they do need a clean place to live and stimulation to keep them happy. Your fish can become a chore if you are constantly shelling out money. Do I have other pets? – Your dog may not care about a few fish but your cat or bird will. They may view it as a moving smorgasbord. Adding fish may not be the best idea. What's my schedule? – If you are busy, fish may be a great pet. But, don't get too fancy. Exotic fish will require more regular care. Can you provide it? The Tank Once you have decided which fish would work for you, then you can investigate the recommended aquariums for that species. Here's what to look for. Size of Tank – The general rule for starting is one gallon of water per one inch of fish length Now you know where to start. Find your fish and then choose the tank.  Featured Pet of the Week: The Common Goldfish
The Featured Pet of the Week is: The Common Goldfish! Goldfish are well known fish that are great pets because they are very attractive, have great personalities with their keepers, and are "easy" to keep. This is definitely true, and for this reason the common goldfish, Carassius auratus auratus, is actually a great fish for beginners. Working in a pet store for a number of years, I have had my fair share of caring for goldfish as well as many other fish and animals.  When people would come into the pet store to get goldfish they generally wanted them for one of two purposes, as feeder fish or as pets. Goldfish are often a first pet for children. They are a fun, yet a fairly inexpensive introduction to the world of fish keeping, and pet keeping in general. I would then help them get all set up for their goldfish with an aquarium set-up, food and a care sheet. Goldfish are quite colorful and can easily be found at almost any pet store. Common goldfish are inexpensive and make a great starter fish. They will eat almost any type of fish food offered to them and get along well with most other community fish. Though they are sometimes put in a goldfish bowl or a smaller aquarium when they are young, they do grow into large fish so will soon need a much larger aquarium. Goldfish can also do well in ponds. This is because they are naturally cold-water fish and don’t need to have strict temperature control like many tropical fish do. Common goldfish will also usually fare well with other pond fish, such as koi. Goldfish are considered hardy and can survive in many conditions, but they must be provided with a good environment. The Common Goldfish can get quite large, over 12 inches when they are kept in large enough aquariums or ponds and in optimum conditions. Optimal conditions for goldfish are dependent on a lot of oxygen in the water, and good water quality. A habitat that is not optimal can not only stunt their growth, but will also decrease their lifespan. Small goldfish bowls or fish tanks that are too small will not provide optimum conditions and your pets won’t reach their potential full size. Provide the best environment by keeping pet goldfish in a good-sized aquarium with a heater, proper filtration for good water quality, and other social fish as tank mates. This will keep them healthy for the duration of their lives. Of course, the more fish you plan to keep in your aquarium, the larger you will want it to be. Goldfish need a lot of oxygen, so you will want to get a tank with a lot of surface area. Surface area helps to increase the amount of oxygen in the tank. Also, goldfish produce a lot of waste (in comparison to other fish), so you will want more water volume per fish to help keep it cleaner. It is recommended to start with at least a 20-gallon tank for your first goldfish, and then to increase it an additional 10 gallons for every additional goldfish. The general rule is that you should provide a minimum of 1 gallon of water for every 1 inch of fish length. But as the goldfish become larger, this rule doesn’t apply as well because larger fish consume more oxygen and produce even more waste. Goldfish are very social creatures and thrive when living with other fish. Therefore, they do very well with other goldfish and a variety of community fish. They act as scavengers as well, and so if kept in a community tank, there is little need for other scavengers or bottom feeders. One thing to keep watch out for is to make sure they do not have any diseases – such as ich or parasites. Whenever adding new fish to an aquarium, watch for any signs of a problem and treat the aquarium accordingly. In conclusion, if you would like to get a fish that is easy to care for and hardy, starting with goldfish may be the way to go! To learn more, visit the Common Goldfish page! Devil's Hand Coral
The Devil’s Finger Coral allows an aquarium to have a beautiful and colorful display!In general, the Devil’s Finger Coral Lobophytum sp. is a relatively easy to care for and to reproduce. They have a large variance in the shapes and colors that are produced and this genus can make a great challenge for advanced aquarists to breed for the variations. This coral can be brittle when held, so you will want to be careful when handling it. Their outside is fleshy feeling with many projections. Their colonies that form are low and encrusting and can be either erect or bowl-shaped. In the wild they can grow to over 1 meter or 3 feet in diameter… Read More
The Vietnamese Centipede
Being very aggressive and large, the Vietnamese Centipede is often depicted as havinga bad attitude! The beautiful Vietnamese Centipede is not recommended for beginner centipede keepers, however it is a hardy species and it’s care is relatively easy. Scolopendra subspinipes is found most readily in Southeast Asia, but actually is found all over the world in tropical and subtropical locations. It is not only found in Vietnam, as it’s name suggests. This centipede is also divided into five subspecies… Read More
How to Choose a Classroom Pet
A pet in the classroom has many benefits for students. But, before you get down to learning you have to find the pet that will suit your class's needs. Usually each class gets to choose the pet that they want in the classroom. The school may have an approved list of pets or leave the decision up to the teacher. Here are a few ideas to help you and your class make the right decision. 1. Talk to the class – Ask them what types of pets they might want to see in the classroom. If you are working from an approved list, show the students pictures of the pets and tell a little bit about them. Pets that are skittish won't do well in a noisy classroom setting. 2. Seek parental involvement – Send a letter home to parents. Notify them of the intention to bring in a class pet. If you have created a list of possible pets, include it in the letter so parents can discuss it with their children. 3. Know classroom requirements – If you have a small classroom, you won't be able to keep a pet that is going to grow to a large size. This will need to be a pet that stays small even as they grow and won't need much space to live and be comfortable. 4. Know kid's allergies – Some kids may be allergic to certain pet dander. You can ask about medical issues on the form that you send home to parents. In fairness to all kids, a pet that can cause health problems will need to be eliminated from the list of choices. 5. Ask about the funding – If a budget has been set aside for classroom pet programs, find out how much money you are allocated so you know what you can afford. Besides purchasing the pet, you will need food, water and lodging for them for as long as they will be living in the classroom. 6. Decide on holiday care – Weekends may not be a problem, but week long holidays such as spring break or Christmas vacation will necessitate the need for the pet to go home with someone. Kids need permission from parents to participate or the teacher can handle the responsibility their self. Kids who live in apartments may not have the option of pets in the home. 7. Research your pet choices – Once the list has been narrowed down, further research can help determine which pet gets to live in the classroom. 8. Where will the pet live afterwards? – Once the year is over, who will care for the pet? You can make arrangements with a petting zoo or natural science center to take the pet. Also, if a student and their family find that they are willing and able to welcome the pet into their home that can be another option. There are many small steps that go into choosing just the right pet for your classroom. Each ensures that your kids get just the experience they deserve. Red Gorgonian Leptogorgia chilensis The Red Gorgonian can grow extremely tall – often the entire height of your aquarium!Depending on how much the water moves in the ocean or the aquarium, the Leptogorgia genus can develop many different shapes. These shapes include a dichotomous structure (a “Y” shaped pattern of branches) and a branch structure that is feathery or a pinnate structure. The Red Gorgonian generally grows quite tall, oftentimes up to 18″ in height. Other common names for the red gorgonians include the Sea Spray, the Sea Fan, and the Sea Whip… Read More
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