When people mention the Greeks, images of Zeus, Athena, and Hercules may come to mind. However, in the finance industry, the Greeks are a set of variables used as measures of risk sensitivity. The Greeks consist of delta, theta, gamma, vega, and rho. This article will provide an overview of each variable and what they represent.
Investors who adopt a disciplined strategy and manage their emotions make better decisions over the long run. Taking control of your emotions in relation to investing seems like an easy task, but in practice it proves to be quite difficult if not impossible to achieve in perfection. I recently came across Kiplinger’s investor psychology quiz which addresses the ways our minds often sabotage financial decisions.
In the Snider Investment Method, we sell options for a premium, which is the amount we receive for selling someone the right to purchase our shares at a particular price over a given period of time. This is the second of a series, with each article explaining a different component that helps determine the premium of a stock option. The last article discussed time and how the Snider Method uses the time value to its advantage. Today’s focus will be on volatility, another important factor that determines option premium.
Have you ever looked at your account balances and asked yourself, “Where did all my money go?” At the end of the month, it’s a good idea to look back at your credit card transactions and bank statements and evaluate your current financial situation to make sure you are spending responsibly. You may not have gone out and bought a new set of golf clubs or splurged on a trip to the beach, but you might be surprised how quickly some of your routine spending habits start adding up over time.
Have you lost sleep over your investments lately? If so you are not alone.
With all the complexities and nondescript jargon surrounding the financial markets nowadays it is easy to forget that they are still driven by the same thing they always have been; buyers and sellers.
by Josh Stelzer With recent market volatility and the market collapse of 2008 fresh on everyone’s minds, insurance companies are ramping up advertising, and capitalizing on the fears of investors . The laundry list of guarantees and flashy marketing materials can certainly be appealing to investors who fear the recent market turbulence, but what’s the catch? Today we will take …
by Jesse Anderson, CFA This is not the type of Twist Chubby Checkerwould enjoy. This twist is focused on interest rates and flattening the yield curve. The economy is still in a fragile state. Everyone is looking for the answer to provide the necessary spark for improvement. The president created a jobs plan and the Federal Reserve announced Operation Twist …
by CareyAnn Peterson Every Monday morning, Richard sips on his morning cup of joe and reads the newspaper while waiting for his bank to open. At 8am sharp, he heads to the local branch of his bank and withdrawals the cash he needs for the week. His favorite teller at the bank welcomes him by name and immediately begins to …
In the Snider Investment Method, we sell options for a premium, which is the amount we receive for selling someone the right to purchase our shares at a particular price over a given period of time. This will be the first of a series, with each article explaining a different component that helps determine the premium of a stock option. Today I will focus on one of the most important factors: time value.
With 10,000 baby boomers retiring every day, having a plan to maximize your social security benefits is an essential piece of your retirement plan. Most Americans believe that their options are limited in this area of financial planning, and I’m here to tell you that it’s quite the opposite.