A failure by European regulators to make banks raise enough capital to withstand a sovereign default is complicating efforts to resolve Greece’s debt crisis.
BusinessWeek.com — Finance
In 2007 the Real Estate Bubble began to deflate with Subprime mortgages busting the loudest. The stock market collapse in half in 2008. This 60-Minutes special features experts that say 2010 is going to be worse. Millions more Americans are going to face foreclosure with their homes underwater, even prime mortgages. Home values are going to decrease another 30-50% in the most inflated markets. Get out now and go into safer assets. Be ready investors and 401k holders, your stocks are about get cut in half AGAIN when this new panic across the entire platform of the housing market in 2010/2011. Deflation, then more bailouts/stimulus, then serious inflation.
Tapco’s tactical stocks for all sks’s if you need a nice upgraded stock check this video out.
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Option expiration Friday and goes out like a lamb Rebalance
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Home> Money> Day Trading> Friday option expiration and Rebalance goes out like a lamb option expiration Friday and Rebalance goes out like a lamb | Posted: June 21, 2010 | Comments: 0 |]]> Wed I have seen many surprising monthly option procedures and, when combined with new index poised to lead the volatility can not today on this Friday. and not with the World Cup and U.S. Open golf coverage dominating TV and probably the dealers around the United States.
Stocks drifted higher Friday after a rise in gold lifted shares of minerals companies. The Dow Jones Industrial Average rose by 14 points in the trading week after the publication of his first three-day gain since April. Broader indexes edged higher.
The price of gold to a record for a second straight settled. The lifted shares in mining companies such as Barrick Gold Corp. and Newmont Mining Corp. The shares rose 3 percent.
Corporate news brought some buyers. CVS Caremark Corp. and Walgreen Co. ended down a contract that violates the profits threatened. Without the deal, Walgreen could thousands of customers had find somewhere else to fill prescription medications. The company had no details of the agreement. CVS shares rose 3 percent, while Walgreen 3.5 percent.
climbedFriday, a quarterly “quadruple Witching” was day or the simultaneous expiration of four types of options and futures contracts. This brought heavy trading volume and price movement. The week that follows in the June expiration is losing too often for investors. The Dow has a loss this week for the last 11 years published by the Stock Trader’s Almanac.
The Dow is to win on his way to his second straight week. Earlier, the Dow since three weeks. investors have tried to determine whether the stock market “correction” is over. A correction is generally used as a drop of 10-20 percent over the previous peak. The Dow rose 6.3 percent from its lowest end of the year on June 7, but still up 6.9 percent from their high for 2010 on 26 April.
“I do not know that we are totally through the correction,” said Stu Schweitzer, global markets strategist at JP Morgan Private Bank in New York. “I expect markets to remain quite volatile all through the rest of the year but I expect us to go to the year the top. “In the late afternoon trading, the Dow rose 13.90, or 0.1 percent, to 10,448.07. The broader Standard & ; Poor’s 500 index rose 0.50, or 0.04 percent, to 1,116.54, after rising in the past two days, the Nasdaq Composite Index slipped 1.22, or 0.05 percent to 2,305.94
.. Bond prices slipped, interest rates higher. The yield on the benchmark 10-year Treasury note rose to 3.22 percent from 3.20 percent late Thursday.
The dollar was mixed against other major currencies, while € dropped to 0.2363.crude rose 39 cents to 0.18 per barrel set on the New York Mercantile Exchange.
Randy Frederick, director of trading and derivatives at Charles Schwab said the market had bounce from recent lows too quickly. He said non-professional traders to build positions in investment to cushion their losses would be if the market fell again.
“, that we in this big ugly bear market comes back, but to the depths that we were just a few weeks, I think, seems quite possible, based on what I see, “said Friedrich.” I see a reason to be a little cautious at the moment. “The upcoming week brings readings in their own sales and consumer sentiment. The Federal Reserve will meet on interest rates.
Gold reckoned 258.30 per ounce, an increase of .60. Barrick Gold rose 0.47, or 3.3 percent to 0.29 and Newmont Mining climbed .90, or 3.2 percent, to .58.
CVS by 95 cents or 3 percent to 0 , 79, while Walgreen advanced
03, or 3.5 percent, to .30.
Advancing stocks exceeded slightly those on the New York Stock Exchange, where volume was 1 billion shares, compared with 700 million in the same place was traded on Thursday.
The Russell 2000 index of smaller companies 0.77, or 0.1 percent fell to 665.08.
Britain’s FTSE 100 and in Germany, the DAX slipped about 0.1 percent each, while the French CAC-40 rose 0.1 percent. The Japanese Nikkei Stock Average was essentially flat.
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DOW? (NYSE: DIA): September and October looks like March and April
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Options traders betting on fewer Japanese stock swings accounted for almost all trading yesterday of contracts linked to a U.S. exchange-traded fund tracking companies including Toyota Motor Corp. and Canon Inc.
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Option On Stocks – Trade the Nasdaq 100 with Stock and Options
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Option On Stocks – Trade the Nasdaq 100 with Stock and Options
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Option On Stocks
The QQQ is an ETF (Exchange Traded Fund) which gives investors a chance to invest in the Nasdaq 100. The Nasdaq 100 are the top 100 stocks that trade on the Nasdaq Marketplace. The QQQ Exchange Traded Fund is basically a mutual fund that tracks the stocks in the Nasdaq 100. One major benefit of an Exchange Traded Fund (ETF) is that an ETF doesn’t have the management fees and all the other fees normally charged to mutual fund holders.
The QQQ is the most actively traded security in the United States. The symbol was recently changed to QQQQ so it would have 4 characters and trade on the Nasdaq instead of the New York Stock Exchange. Even though the symbol changed, it is still based on the same thing. In most circles it is still called the QQQ, it just trades under the ticker symbol QQQQ. Option On Stocks
Since the QQQ is treated the same way as a stock, you are now able to trade options on it as well. People are now making a living trading put and call options on the QQQ. This was previously unavailable since the only way you could trade the Nasdaq 100 was with futures contracts. Very few investors are familiar with the futures market, and therefore stayed away from it. Since you are now able to trade options on the QQQ, you can also use any of the option trading strategies that were normally only used on stocks. Some of the more popular option trading strategies are covered calls, ratio backspreads, bull put spreads, bear call spreads, iron condors, butterflies and any other strategies that involve combining stocks and options.
Covered Calls are probably the most popular option strategy to normal investors. It is a way to generate a monthly income from stocks that you own. Here is a very basic explanation of a covered call: You own 100 shares of the QQQ. Option contracts are only sold in 100 share increments. Since you own 100 shares you can sell a contract to sell the QQQ to somebody at a specified price in the future. You normally sell the contract at a higher price than the stock is trading. If the stock doesn’t continue to rise, the person won’t buy the stock from you, but you get to keep the money that you got when you sold the contract. Option On Stocks
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Going Public – Is it The Best Option For You?
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Going Public – Is it The Best Option For You?
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Posted: Nov 23, 2005 |Comments: 0
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Know what an IPO is? An initial public offering (IPO) is basically a company’s first sale of stock to the public, which is why it’s also called “going public.” Usually – but not always, an IPO involves the stock from a young and not-too-well-known company. The most compelling reason to go public is to raise cash for operating capital. But there are strings attached…
After the demise of the dotcoms, the scandals of Enron, WorldCom, Tyco, and Global Crossing, the landscape for IPOs has changed. Taking a company public is no longer an automatic decision – even for those companies who are good candidates. Oh, there are lots of reasons to go public – access to capital, increased liquidity, employee compensation, publicity, and prestige. But before you jump on the “public” bandwagon, make sure you’ve considered the following points.
Have a golden parachute handy?
Anytime you take on a money partner, you risk losing control of your company, and maybe even the company. Jim Clark, before his huge success with Netscape, was essentially forced out of his first venture, Silicon Graphics, by the venture capitalists he initially partnered with to get started.
Some entrepreneurs chafe at the constraints of being a public company. Richard Branson of Virgin is a good example. After taking his company public, Branson discovered he really did not like sharing profits and working with outside directors of the company. Branson and his management team eventually executed a management buyout to take the company private again.
Research any anti-takeover measures available and build them into your IPO, if possible. Remember, though, investors won’t be willing to pay top dollar for a company where the management can’t ever be replaced.
Sexy enough?
Your company must have an “investor appeal.” This means that your industry, services, or products are extremely popular with consumers, and therefore, very attractive to investors. If your product or service isn’t “sexy,” going public is not for you because brokerage firms probably won’t even talk to you and a privately sponsored IPO -which is an option – is really not for the weak at heart.
Do you know your “why”?
A business needs a reason to go public, for investment in future growth. If it currently is cash rich and has no intention of explosive growth that requires more capital, there is very little benefit either for the owners, or future shareholders. Also, unlike in the heady days of dot-com-ville, you have to justify the infusion of cash; don’t expect anyone to look favorably on corporate fitness centers and fancy desks!
Are you comfortable with “sharing” – profits and information?
In exchange for the infusion of cash which is generated from an IPO, you agree to give up a portion of your profits which are returned to the investors. Essentially, you’re sharing the rewards with your partners, as they come in and assume some of the risks for you.
Some companies resist going public because of the loss of confidentiality for company operations, policies, and profitability. This is especially important for companies who depend on proprietary technology to create its goods or services.
Do you have a good business plan?
Part of the IPO process is completing the disclosure document, which is very important in convincing investors of the viability of your IPO. Without a well-defined business plan in place, you may find it difficult to fully answer the disclosure document questions, and investors may find your offering less attractive. The business plan you’ll need can run from 25 to hundreds of pages, and can cost ,000 – ,000 to produce.
How much more reporting are you willing to do?
Public companies are often put under a microscope by investors, customers, competitors, regulators, etc. There’s also a tremendous push these days for greater transparency with financials. The public market is demanding not just the numbers, but how those numbers are derived. As the head of a public company, you will be required to file reports with the SEC, any exchange you list on, and comply with any applicable state securities law. All these reports cost money to produce and also provide information to your competitors.
Are you a lone wolf?
If you are successful with your IPO offering, someone else will own a share of your business – and they may want a say in how things are run. You will be subject to their ideas, opinions and demands on how you should run your company. If you are not willing to share control with your new partners, or if you don’t trust their decisions, this loss of control is the deal breaker for you. And if your business relies heavily on the ability of one or more key personnel, realize that going public can put huge restrictions on these people.
Got an extra million lying around?
An IPO costs money! A typical firm may easily spend 0k on direct expenses related to an IPO. And that doesn’t even consider the indirect costs of management time being spent on IPO, disruption of business while preparing the IPO, etc. You’ll also need a good outside team – IPO consultants, accountants, attorneys, underwriters and PR specialists – none of whom work for free, of course!
What if you don’t have free time to begin with?
Most people are surprised at the amount of time it takes – outside your normal business operations – to prepare your offering. During this time-intensive process, your role of actually managing the company may suffer. You’ll be meeting with, and giving presentations to, potential investors. And the toll on your personal life can be significant – preparing to go public will eat into your time for family and friends. Yes, it’s only short-term, but it may be as long as one year, and you do need to be prepared for long, sometimes grueling, 13 to 15-hour days.
Is your management style conducive to shepherding employees through the changes?
Many business owners report that the process of going public changes the internal dynamics of a company. It’s important to maintain open lines of communications among your staff during this time. Once you’ve gone public, don’t let the staff feel they need to worry about day-to-day fluctuations in stock price, distracting them from their jobs. And sometimes, employee benefits programs are modified after an IPO, which can also make employees nervous.
If your current management style is very close-to-the-vest and you usually only share information on a strict “need-to-know” basis, the productivity of your employees post-IPO may suffer severely. A more open management style is more conducive to successful post-IPO operations.
[A special thanks to these experts who helped me compile this list: Willie Crawford, Andy Beard, Dien Rice, Ankesh Kothari, Richard Dennis, Stephan Iscoe, Jeff Burnham, Members of The Seeds of Wisdom Business Forum, and The Willie Crawford Forum. M.M.]
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©2005 Maria Marsala, former Wall Street Trader. We help women CEOs and Presidents run more effective and efficient businesses while positioning themselves to achieve financial/personal success. Join “SIMPLE Solutions Ezine” to receive an audio and 2 reports. http://www.ElevatingYourBusiness.com
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Trading of U.S. stock options soared to the second-highest level in nearly four decades of history yesterday, boosted by investors using the contracts to capture dividends paid by the biggest exchange-traded funds.
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