Straddle vs strangle strategies are very important to understand. They are two of the best and most widely used options strategies. Both strategies focus on maximizing profits when stock prices move up or down. Both rely on buying equal numbers of call and put options with the same expiration date. Definition of Investment Terms We just threw out a lot of important terms. So before we go any further, let's take a moment to understand what … [Read more...]
What Does a Vix Index Measure? If you've stumbled across the word “vix”, you're almost certainly looking at something related to the vix indices. These indices measure the expected volatility for a given index over a 30 day period. The measurements are forward looking. Meaning to say, they make projections for the future rather than an analysis of the past, and they measure put and call options. Vix Indices and Options Options, in case you … [Read more...]
So what does intrinsic mean? If you see the term intrinsic definition, you're almost certainly looking at the term for intrinsic value. The definition of intrinsic basically means the actual value of a company, stock, or other type of asset. You can think of intrinsic as the underlying value of something. This value isn't as subject to the whims of markets and rapid developments. In a perfect world where markets operated instantly and were … [Read more...]
Considering an investment in a mutual fund? Mutual funds are a favorite for many investors. These are especially great options for newer investors who are just learning the ropes of the investment world. Even experienced investors, however, can benefit from having mutual funds in their portfolio. So What is a Mutual Fund? These funds are pretty simple concepts, a mutual fund is basically a pool of money that a money manager pools together to … [Read more...]