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Special Report on

Stock Options as Portfolio Insurance

stock options as portfolio insurance special research report Photo by i.investopedia.com
This may sound complex, but the effect of a collar is simple enough. Your stock market returns are limited to a range. If stock losses are too deep, the purchased put options compensate you to limit your losses. If stock market returns are very high, the call options you sell limit your gains. You may wonder why anyone would bother with the call option part if they limit your gains. The answer is that you get cash from selling the call options that you can use to buy the put options. So, in trade for the guarantee that you won’t lose too much, your gains are limited as well. The particular strike prices of the options ...
A normal executive would receive a basic salary, any and all bonuses, shares, options, and any other company benefit. Over the past three decades, executive pay has risen dramatically beyond the rising levels of an average worker's wage . Executive pay is an important part of corporate governance , and is often determined by a company's board of directors .
REVIEWS AND OPINIONS
stock investing & option investing in mining sector
PowerOptions offers you the convenience and control required to automatically sort, filter, and analyze all 2,800+ optionable stocks and 180,000+ options online to find investments to meet your profit goals. Mining investments are looking attractive. For the last 6 months, this sector has been on the upswing. Iron, used extensively in steel production, isn’t as glamorous as gold, but its importance is critical. Gold is, of course, the standard, and will always be a good recession investment, but the bottom of that market may have passed. This may be a good time to consider the broad Mining Sector. A big milestone was ... market research, surveys and trends
How to Slash Risk and Avoid Losses With a “Stress Test” of Your ...
Back when I was a portfolio manager, I was always looking at ways to “stress test” my portfolio. In other words, I was on the constant lookout for ways to hedge my holdings, guard against risk, and to anticipate anything the market could throw at the stocks, bonds, options and other investments contained in my portfolio. Hedging involves much more than just anticipating the movements on individual stocks. The financial markets are so deeply interconnected that – to the distant observer – they might appear to be seamless. To show you what I mean, let’s look at oil: It’s a great ... market research, surveys and trends

SURVEY RESULTS FOR
STOCK OPTIONS AS PORTFOLIO INSURANCE

Stocks, Bonds, Options, Futures, And Portfolio Insurance: A Rose ...
Trading volume and open interest in options and futures contracts on stock indices, equities, and interest rate instruments traded on world exchanges have experienced remarkable growth. From 1986 through 1991, the open interest in exchange-traded derivatives grew by 36 percent per year, reaching $3.5 billion at the end of 1991. The notional principal of financial derivatives traded in the even larger over-the-counter market (mostly on interest rates, in the form of swaps, forward agreements, and option-like caps, collars, and floors) grew at an annual rate of 40 percent.(1) This rapid growth has been accompanied by controversy ... industry trends, business articles and survey research
Derivatives Strategy - August'2000: 2000 Hall of Fame Roundtable ...
cofounder and and principal of Jacobs Levy Equity Management, is the author of Capital Ideas and Market Realities: Option Replication, Investor Behavior, and Stock Market Crashes Peter Vinella , senior consultant at Peter Vinella & Associates William Brodsky , chairman and CEO of the Chicago Board Options Exchange Mark Rubinstein , Paul Stephens professor of applied investment analysis at the University of California at Berkeley's Haas School of Business Roger Lowenstein , a former reporter and columnist at the Wall Street Journal, is the author of When Genius Failed: The Rise and Fall of Long-Term Capital Management (to be ... industry trends, business articles and survey research
RELATED NEWS
How to Slash Risk and Avoid Losses With a “Stress Test” of Your Personal ...
Back when I was a portfolio manager, I was always looking at ways to "stress test" my portfolio. In other words, I was on the constant lookout for ways to hedge my holdings, guard against risk, and to anticipate anything the market could throw at the stocks, bonds, options and other investments contained in my portfolio. Hedging involves much more than just anticipating the movements on individual stocks. The financial markets are so deeply interconnected that - to the distant observer - they might appear to be seamless. To show you what I mean, let's look at oil: It's a great real-world example, ... market trends, news research and surveys resources
www.StockBrain.net: Stock Brain Presents!! ERFW "ERF Wireless Confirms All ...
LEAGUE CITY, TX, Aug 05, 2010 -- ERF Wireless (OTCBB: ERFW), a leading provider of enterprise-class wireless broadband products and services, announced today that the company has repaid all of its outstanding convertible debt as of close of business August 4, 2010. As reported in its 10-Q for the first quarter of 2010, the company received approximately $600,000 USD in financing through convertible debentures with several institutional investors during the first quarter of 2010. Since that time, the company has worked to repay that debt, while continuing to execute its business plan for overall revenue growth. In particular, ERF ... market trends, news research and surveys resources

INFORMATION RESOURCES

PORTFOLIO “INSURANCE”
Portfolio “insurance” is based only on the principal of risk transfer. One person's protection is another ... the stock plus cash position is known as the “delta” of the position. ... This difference tends to define who buys options ... technology research, surveys study and trend statistics
A Brief History of the 1987 Stock Market Crash with a Discussion ...
the models would suggest an increased weight on stocks. Buying portfolio insurance was similar to buying a put option in that it allowed investors to ... technology research, surveys study and trend statistics
ON THE OPTIMALITY OF PORTFOLIO INSURANCE by Simon Benninga and ...
II. Portfolio Insurance in a Two-Date Model. The development of the Black- Scholes option pricing model assumes that the returns on risky assets conform to ...
REAL TIME
STOCK OPTIONS AS PORTFOLIO INSURANCE
QUESTIONS AND ANSWERS
What caused the Black Friday stock market crash in 1987?
In the days between October 14 and October 19, 1987, major indexes of market valuation in the United States dropped 30 percent or more. On October 19, 1987, a date that subsequently became known as "Black Monday," the Dow Jones Industrial Average plummeted 508 points, losing 22.6% of its total value. The S&P 500 dropped 20.4%, falling from 282.7 to 225.06. This was the greatest loss Wall Street had ever suffered on a single day.1 According to Facts on File, an authoritative source of current-events information for professional research and education, the 1987 crash "marked the end of a five-year 'bull' ...
Fast Answers: Investing, Options, General. - MSN Money
An option is an instrument that gives the owner the right -- but not the obligation -- to buy (a call option) or sell (a put option) an underlying stock, index or futures contract at a set price for a particular period of time, usually a few months. An investor buys a call option if he thinks the underlying investment will rise in value. He buys a put option when he thinks the underlying investment will fall. For example, you might purchase the right to buy 100 shares of IBM at $130 for one month from now. The initial seller of the option, known as the option writer, receives a nonrefundable payment called a premium. In this ...