Blog

Among the many options strategies, one of the most interesting is synthetic long stock. This involves a long call and a short put opened at the same strike and expiration.

The name "synthetic" is derived from the fact that the two positions change in value dollar for dollar with changes in 100 shares of stock. However, the cost to open the position is close to zero and may even produce a small credit.

For example, a stock is priced at $50.35 per share. The value of the November 50 calls and puts a

Those were the days when all parents had to worry about was the creepy guy lurking near the playground. Now parents have to worry about creeps all over the world reaching their kids via computer. And there’s more to worry about. Here’s what to teach your kids:

• Screen names should not be revealing about location, age or even gender. Never use the full name. Choose a name that would never outright point to the user, such as “Chris J,” when everyone knows the user as Tina Jones. “Chris” can make Tin

Foreign hackers, look out: Uncle Sam is out to get you. President Obama has issued an order that allows the State Department and Treasury Departments to immobilize the financial assets of anyone out-of country suspected of committing or otherwise being involved in cyber crimes against the U.S.

This order, two years in the making, covers hacking of anything. The order refers to hacking as a national emergency. Imagine if entire power grids were hacked into. Yes, a national emergency.

Another reason

The attraction of the ratio write is the potential for higher premium income. However, ratio writes do increase risks. Options traders too often convince themselves that exercise is unlikely, and that time decay is "likely" to outpace intrinsic value even if the calls go in the money.

Here's the thinking: You open ATM or ITM positions with one to two months until expiration. It's all time value, so that will evaporate very quickly. Even if the underlying price rises, you can close the exposed por

Let’s cut to the chase (never mind how you misplaced your phone): There are several ways to sign out of your Google accounts remotely. It takes three steps, and you’ll need the desktop version of Google.

• On a mobile use a browser opposed to the Gmail/Google app and sign in at gmail.com.
• Seek out “Desktop version” at the bottom of the window/browser. Click it. You may need to login again.
• At the very bottom you will see “Recent Activity” in the right corner. Look below that to see “Details.” Click t

Most swing traders use long stock for expected upswings; and either short stock for downswings or just stay out because shorting is high-risk. Two things are problematical with this idea. First, the risk should not be ignored; and second, you miss half of the swing opportunities by avoiding going short.

There is a solution, and it enables you to trade with control of 100-share lots for much less cost than 100 shares. It also reduces market risk. Using options to swing trade is a logical answer, a

Even the most experienced option trader can benefit with an occasional reminder: The most basic strategies often are the best, all depending on the situation and what you hope to accomplish with the option position.

Just mastering a complex strategy does not include the requirement that you abandon the basic ones that might work better. For example, do the conditions can for a long call or put, a covered call, or an insurance put? Admittedly, these are not the most exciting options strategies, bu

To help keep your home and property safe from crime, the New Castle County Police Department provides the following guidelines:

1. Sounds like a no-brainer, but so many people do otherwise: Keep your doors locked at all times. People will actually go to sleep with the front door unlocked.
2. Doors should be locked with a deadbolt that has at least a one-inch throw.
3. Keep windows locked. People have been known to leave a window open overnight in their child’s bedroom. Yes, hot weather is here, but there ar

The collar can be expanded to create a truly creative variety. The traditional collar (own 100 shares, sell 1 covered call, and buy 1 put) can be turned into a long-term protective version:

• buy 100 shares
• sell one very short-term covered call, maximizing annualized income as the result of time decay, picking a strike higher than the cost of your stock
• buy one long-term put (8-10 months)

This accomplishes a relatively high rate of return without the need to replace the put. The short call expires or

Enrique Suarez Presenting:

Global Derivatives: $1.5 Quadrillion Time Bomb

Source:

Stephen Lendman

Global Research, July 26, 2015

When investing becomes gambling, bad endings follow. The next credit crunch could make 2008-09 look mild by comparison. Bank of International Settlements(BIS) data show around $700 trillion in global derivatives. 

Along with credit default swaps and other exotic instruments, the total notional derivatives value is about $1.5 quadrillion – about 20% more than in 2008, beyon

Enrique Suarez Presenting:

“Buying Countries”, No Capital Controls for Oligarchs: Billionaire Warren Buffett Buys Greek Island

Source:

Michael Krieger

Global Research, July 22, 2015

Lliberty Blitzkrieg

If you want to see what unrestrained parasitic financial oligarchy ultimately looks like, look no further than the humanitarian crisis in Greece turned unprecedented billionaire opportunity. With global wealth becoming systemically concentrated in the hands of “insiders,” empty flats bought for tens of

When writing covered calls, it's important to accurately compare one expiration to another, to make certain that your analysis is accurate based on both rate and time. You can compare annualized returns under the following guidelines:

1. Make all yield comparisons to the strike. Use the strike for consistency, based on the rationale that if exercised, the strike will be the price at which you sell shares. Alternatives are to base the analysis on your stock basis or current price, but both of thes

Using options to focus more on either uptrend or downtrend is an effective method for augmenting the swing itself. The strategy assumes that you have an opinion about the prevailing direction of movement in the underlying, and that momentum confirms your opinion. So as a starting point, you can coordinate a weighting decision by checking some of the best momentum oscillators like RSI or MACD.

There are numerous methods for weighting one side or the other. On the bottom of the swing, bullish weigh

Think about your keychain. It probably holds the necessities: car keys, home keys, work keys, miscellaneous keychains you bought on your previous vacations. Now, imagine you have a keychain full of these keys that all look the same, but each only opens a specific door.

Sounds kind of like your list of passwords, right? But what happens when you have all of these keys, and you need to get into your house? In either situation it can be easy to forget which key, or password, goes to what door or web

You’ve been “Googled.” No matter how small a speck you think you are in this universe, you have without a doubt created an online footprint that is attached to your name. Chances are high that someone out there has followed this footprint of yours via a Google search.

Whether by a business colleague, family member or even a significant other, it’s reasonable to assume that your name will be “searched” online for personal information about you. But, what are the results of these searches? Are you

Traders hear about all kinds of risk, but one specific type is common to traders at all levels, but rarely if ever discussed.

Are you the victim of "self-discipline risk?"

Most traders are. You set rules for yourself but make the mistake of breaking them later, based on how prices change. For example, you go long on an option with the intention of selling under one of two circumstances. If the price rises, you will sell when you double your original investment. If the price falls, you will bail ou

Not all computer viruses immediately crash your device in a dramatic display. A virus can run in the background, quietly creeping around on its tip-toes, stealing things and messing things up along the way. If your computer has a virus, here’s what may happen:

• Windows suddenly shuts down.
• Programs automatically start up.
• Some programs won’t start at your command.
• The hard disk can be heard constantly working.
• Things are running awfully slow.
• Spontaneous occurrence of messages.
• The activity light on the

Creating synthetic long stock lets you open an options-based position that behaves exactly like 100 shares of stock, but without requiring you to invest in shares. In exchange, you are required to deposit collateral in your margin account equal to the strike value of a short position.

An example: You want to buy 100 shares at $60. You create a synthetic long stock position in options. The following options are available:

September 60 call 2.00
September 60 put 1.52

The synthetic long stock position

Hello all,

I am producing the new Marcus Evans Global Anti-Corruption and Risk Management conference and I am currently looking for experts in the field of anti-corruption and risk management to speak at the event in London, 18th to 20th November. 

I also still have one remaining workshop that still needs a leader. The workshop will be looking at the importance of education and training effectively your workforce so that they are aware of current regulation surrounding corruption and bribery. As w

CNN recently reported that the data breach of the IRS, which occurred between this past February and May, originated from Russia. The crooks were able to steal tax returns from over 100,000 people. The thieves filed a total of $50 million in tax refunds, having obtained personal data to get ahold of the data.

In other words, this crime wasn’t a hacking job. The Russians didn’t hack into the IRS’s network through some “back door” or social engineering scheme. They actually entered through the fron