why do you chooce put option even when stock is going down?can you tell tell me the basic reason?
598462
Sorry to seem flippant, but that's a very advanced concept, with huge risks, that you should probably avoid for a year or two while you study up on it. \n\nThe reason people buy options is because of the huge leverage with limited capital and small risk, per dollar investment.\n\nBut if you consider the reality that 85% of all options expire worthless, that's a huge risk, even if you invested only one dollar, and appears more for what it is: a fools game.\n\nOptions were designed as a hedging strategy, not an investment strategy. \n\nThe people making money on options are the ones on the floor that "sell" them. But again, the risks are huge because losses are open ended and gains are limited. This is a full-time job, monitored by experts, devoting their life to their positions. If this sounds good to you, then by all means, go for it. Just be prepared for a steep learning curve.
204945
It is not wise to invest all your portfolio in just one stock.\n\nI can advise you.
37521
the main purpose of buying stocks is not for you to flip it immediately.  There has to be a reason that you bought the stock in the first place.  [other than a hope that it moves 2% over night.]  If the fundamentals of the stock haven't change then you shouldn't look at daily price fluctuations.  Put in a stop-loss to prevent a big drop and put in a market order so that when a stock does what you want it to, you take your profits out.
82883
This is the ultimate goal of a short seller.  Remember, when you short a stock you really don't have a position.  You are borrowing shares that belong to someone else and then selling them.  If the stock goes to zero, you keep the proceeds from the sale and then you return the worthless piece of paper.
752128
Selling short stocks or options is perfectly legal.  Because you are taking on a financial risk, which you may not be able to cover, your broker will have limitations of what it will allow you to do, based on your account balances and investing experience.\n\nA common practice to limit your risk is to buy a call option with a strike price (at which you can buy back the storck) that is quite a bit higher than the stock's current price.  This option won't cost you much, but will limit your potential loss if the stock keeps going up instead.  For example, if you sell short 500 shares of stock that is trading at $55/share, you can buy 5 call options to buy this stock at $70/share.  It will not cost you much at all, but it also reduces your potential loss from having no limit to being capped out at $15x500=$7,500.\n\nAlso, to sell a stock short you'll need to have a margin agreement signed and approved by your broker firm.
800207
This is hard to answer because you haven't provided enough information.\n\nWhere was the alert provided? (a web site?  an alert site?  a specific piece of software etc.)?\n\nWhat about the stock split was bogus?\n\nIf you are having an issue with Yahoo Finance, this is not where to get support.  Try this link instead:\nhttp://help.yahoo.com/help/fin/
725959
in very plain language, a regular split makes your stocks price go down but you get more stock.\n\nA reverse split makes the price go up but you have less stock now.\n\nI have made darn good money due to split of both kinds.  I do not worry, wring my hangs and then lose control and sell.  I sit on my stock for longer periods of time than others do AND when I find a company that just did a reg. split, I buy buy buy at that new low price.\n\nOf course if a company is doing crappy over all I would not buy into it but I do my homework.\n\nIf you take your money and run with it you might be sorry...  but then again you might not... that's the glorious thing about the market, YOU get to decide !!\n\nI wish you the best choice !!\n\n: )
405554
I was checking this out the other day, but bought PTEN instead.  This stock is fundamentally unsound, the only positive is the 31% quarterly revenue growth, undoubtedly due to the increase in gold prices.  Technically, it's another story; all indicators are Very Bullish in the Short, Mid and Long terms and the stock seems to be forming a solid base finding support at 5.94.  Personally, I'd buy this stock if I weren't currently in another issue, though I rarely get involved with an issue that is fundamentally weak because it makes very little sense.  \n\nHaving said that, if I get stopped out of PTEN and KRY is still in it's base, my play will be to get in as close to 5.75 as possible with a fixed stop loss at $4.90 because volatility could push it to it's previous resistance at 4.91.  If it closes below 5.25 I'll be keeping a close eye on it, and will consider cutting my losses, depending on indicators.  If it stops me out before I can react I'll just take my loss and move on, but it will be a much larger loss than I normally take, because I usually set an 8-10% stop loss, so I would consider this a risky play.  However, if the stock breaks it's resistance at 6.14 and closes higher than it's previous high of 6.25 I'll change my stop loss to a trailing stop of 10% and just hold on, because I can see this stock easily moving to 9-12 before it's next pull back.\n\nWhatever you do, protect your downside.
50554
Look at how much you invested and how much you've lost. Then, figure out how much you could "lose" before you HAD to get out. If the calls are still worth more than your exit point, you COULD keep going.\n\nWhile we're about 5 weeks away from the expiration of your options, time decay will start kickingin soon. Playing with options close to expiration is very risky.\n\nLearning point : When you invest in options, set two exit "points". The lower one will serve to limit your loss. The upper one will require some mental discipline and limit your profits.\n\nMany investors with a profitable stock/option want to let it ride. Unfortunately, even good stocks/options can quickly turn sour, costing you $$$. In the words of Jim Cramer...\n\nBulls make money.\nBears make money.\nPigs get slaughtered.\n\n\nGood luck!
815623
Just think of it like this - an opening transaction starts the position - long or short (a buy to open would be a long, a sell to open would be a short) and a closing transaction leaves you flat (buy to close = covering a short, sell to close = selling a long).  They ask this because shorting options can be extremly risky, and may brokers will not let you sell call options short.\nI don't know what quote software you're using, but the 45 and 55 sound like strike prices to me, you should look into that.\nWhen you buy one call option contract, you're buying the RIGHT to buy 100 shares of the stock at the predetermined price, not the obligation, and not the actual shares, but I'm probably splitting hairs here - yes, one contract is equivilant to 100 shares.\n\nOptions are bot and sold just like stock, you make money with them the same way you would trading stock - buy low and sell high (or visa versa).  One important distinction, long positions in options are intrinsically 'wasting assets' - they will lose value over time.\n\nThese are  more tricky and risky than plain equities, and it sounds like you need to do a little more research into them before you get started - don't start before you understand them completly.  I'm sure google would produce numerous sites that explain them and the different stratagies employed by options traders (spreads, straddles, covered calls etc.)\n\nGood luck to you!
454757
Yes and it does have to do with dividends.  You'll want to exercise early if the stock is about to pay a dividend and the "time value" of the option is less than the dividend.  \n\nWhat does that mean?  Well, a stock's price should drop after a dividend is paid so if the current market price is just slightly above your option's strike price, the option could go from an "in the money" option (meaning if you exercise you'll get some cash) to an "out of the money" option (meaning you'll get nothing).  Still, even this wouldn't mean that you'd definitely want to exercise the option unless the expiry date of the option was also coming up.  I.e. the stock price doesn't have a reasonable chance of recovering from the dividend payment to get back "into the money".
525902
You now have 2 call options (200 shares) if it's a 2 for 1 split.  Works the same as a stock split.  More stock lower price.
407689
You do borrow shares from someone if you short.  Typically it's the brokerage you are shorting with, who is using the shares of another account holder. If they don't have the shares, they borrow from another firm.  Interesting problems happens when they run out of shares to borrow.  Or even better, the owners of the borrowed shares decide to sell their's.  Often when you want to short in a tight market, brokers will trash your trade while advising "no shares available" so you can't always short when you want, no matter the price you offer. \n  Where do the dividends come from?...your pocket if you are holding the short because you have basically a negative stock.\n\nFYI, there's no reason to hold a short unless you are selling a "covered put"; which will be never.\n\nMost traders buy puts to play the downside of an equity.     \nAgain: don't ever short a stock. Use puts.\n\nGood luck to you....
1090760
Trigger Price is a generic term that applies to trades of all kinds of investments - not only for derivatives.\n\nThere are different types of ways you can trade ( Let's use stock for discussion ).\n\nIf you want to buy shares in a company, you can buy it at the current going rate ...Called Market Order\n\nIf you think the current price is too high and the share price will come down, you can choose that price and place an order called Limit Order.  But the problem with this order is, the price may never come to that Limit Price and your will never be executed.\n\nThe above limit price can also be construed as Trigger Price, as it will trigger buy for your order.\n\nBut, it mostly applies to another type of order called Stop Loss ( Limit ) Order, with a couple of it's own variations.\n\nIf you don't want to sit in front of your computer all day long, watching the ticker for price...what you can do is....place a Stop Market Order or Stop Limit Order, with a Trigger Price.\n\nFor Example...say...the share of your favorite company is currentlyy trading at $100/share.  But your gut says, it went up too much too far...and I am more comfortable buying it at $90/share.  So you place a Limit order to buy 100 shares at $90/share. After work you come home and find that the day low was $90.25 and finally closed at $95 for the day.  Your order never got filled because you wanted to buy ONLY at $90 and you feel like you missed the boat by 25 cents.\n\nStop Market/Limit Order comes to your rescue.\n\nEarly that day, if your gut had said..$90/share is a good price, but I am okay with $92/share too, but definitely NOT $100/share.  So, what you should have done is place a Stop Market/Limit Order with $92 as the trigger price.\n\nNow..if you had placed Stop Market Order for $92...as soon as the price crosses $92/share your order would have been executed. But since it became a MARKET ORDER at the trigger price, you PURCHASE PRICE maybe $92 or $90.25 or even $95.\n\nAll your $92 did was trigger the execution your order, which converts into a Market order at that price.\n\nInstead, you could have placed a Stop Limit Order, for a specific $$$ amount, even after your order is triggered by $92.\n\nFYI...Only market order guarantees execution
324804
I hear that buying Royalty Dividends is hot.  Know what it is?  If not, its stock in fuel.  Not alot of investors mess with it but there is a big market for it on the net.  Just set up e*trade account and go!  You get a check monthly or option to convert back to stock options.  That's what I'm hearing!
84731
Before you trade stock options you need to be a proven money maker in the stock market. Unless you can anticipate stock movements, you have no chance trading stock options.\n\nThe way I trade stocks, I cut my losses short at about 7% Several years ago I decided to take that 7% and put it in call options 3 to 6 months out instead of 100% in shares. \n\nYour risk is clearly defined, and you are offered some protection from events such as market closures or gap downs.\n\nI would never risk more than 1% of my entire portfolio on an option position.\n\nSpreads, straddles, and the ability to hedge are other benefits of options. Only trade stock options if you are an accomplished stock trader. You could lose alot of money.\n\nWriting options is statistically a losing proposition in the long run. The risk / reward is clearly unfavorable.
582020
you put the stop-loss order in & the market manages it. If goes down to that price - it is sold & your exposure is closed out.