Sunday, May 24, 2020
Trading for Options Under Different Strategies - Free Essay Example
Sample details Pages: 5 Words: 1536 Downloads: 9 Date added: 2017/06/26 Category Finance Essay Type Research paper Did you like this example? Contents Introduction: Strategies: Strategy 1: The reason why I choose this Trade: What was worked? What did not work? Improvement in the trade: Strategy 2: Trading an option and the underlying asset: The reason why I choose this Trade: What was worked? What did not work? Improvement in the trade: Strategy 3: Spreads: The reason why I choose this Trade: What was worked? What did not work? Improvement in the trade: Conclusion: . Don’t waste time! Our writers will create an original "Trading for Options Under Different Strategies" essay for you Create order Introduction: Different types of strategies can be used for hedging including: Principal protected notes Trading an option and the underlying asset Spreads Three selected companies are the Apple, Google and Intel Corporation. The above three strategies are discussed in detail with respect to each company. Strategies: Strategy 1: The first strategy that was applied through the interactive brokersà ¢Ã¢â€š ¬Ã¢â€ž ¢ application was for the Apple Company. The reason why I choose this Trade: Apple Inc. (Apple) designs and manufactures the markets mobile communication and media devices, personal computers, and portable digital music players, and a variety of related software, services, peripherals, networking solutions, and third-party digital content and applications. Its stocks show a strong position in the market due to the diversified business of the Apple Company. The Companys products and services include iPhone, iPad, Mac, iPod, Apple TV, a portfolio of consumer and professional software applications, the iOS and OS X operating systems, iCloud, and a variety of accessory, service and support offerings. The Company also delivers digital content and applications through the iTunes Store, App StoreSM, iBookstoreSM, and Mac App Store. The Company distributes its products worldwide through its retail stores, online stores, and direct sales force, as well as through third-party cellular network carriers, wholesalers, retailers, and value-added resellers. In February 20 12, the Company acquired app-search engine Chomp. Below is the detail of the companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s stock from May 2013 to 1 May 2014. The closing price is $592.3 which is quite risky if we trade in this stock. The reason of choosing to trade in Apple stock is due to the fact of increasing stock price of Apple shares since May 2013 up to now. What was worked? On April 30, 2014, I bought a call option at 492.5 USD which was the share price and would expire at 2 May 2014. On the same date, I bought Apple stock of 100 shares at the price of 592.34 USD. On the same day I sold 100 shares of Apple at 596 USD each. On May 1, 2014, I sold call option for 99.2 USD. The overall profit realized is low because of that call option. What did not work? Instead of buying one call option, I bought 2 call contracts and the realized profits was low because of that extra call option. I should have to sell 100 shares of Apple which would increase my profits instead of buying a call option and selling them together with the stock. Improvement in the trade: Instead of buying 100 shares of Apple stock, I would have to buy all 300 shares and sell them at a high price which would eventually produce a good profit on the other 200 shares. Instead I can use the combination of an option with the zero- coupon bonds which is called the principal protected note strategy. This strategy is good for conservative investors where the return is dependent on the performance of the stock. Here the Apple stock is performing well and this strategy can produce a good return for the investor. In this case the value of the principal is protected i.e. (300*592.34) 177,702 USD would be protected and grown too because zero coupon bond pays principal as well as strike price of the call option. This would be the case if the price of the portfolio goes up. But if the portfolio goes down, the value of the option would have no value but the original principal would be protected. Strategy 2: Trading an option and the underlying asset: The second strategy is trading an option with the stock and this is applied for the Google stock. The reason why I choose this Trade: The reason why I choose google is because it is the biggest company in IT sector. Google is one of the richest company in terms of revenues and net profits. Its price earnings ratio is 27.6 and its earnings per share is 19.09. So it is a healthy company to invest in its stock. Its estimated target share price for one year is 1324.63 USD. The chart above shows the last day activity and one year activity of the stock which is showing a deficit closing. As can be seen from the chart the closing price of the day for google stock is 526.66 USD which is also a risky stock with more returns. Overall the google stock has shown a moderate variations in its price over the year. What was worked? On April 30, 2014, I bought 300 shares of google at the price of 536.15 USD. I would need to hold the stock of google because the unrealized loss which would be realized if I would sell it is 2,228 USD. What did not work? Call option need not be implemented because of the lower price of the google stock. The shares would not be purchased at this time because the google shares are already traded in loss. Improvement in the trade: The number of strategies can be used for this single stock. We can use writing a covered call option where in which portfolios consists of a long positions in stock and a short position in the European call option. There is a protection for investors from a long position stock on the payoffs from a short call. The short call payoffs becomes necessary when there is a sharp rise in the stock prices of the google. If the option would have been exercised, I would sell all the 300 shares of the google stock at the strike price. Now I would have to wait for the option to be exercised so that I can sell whole of my stock. Strategy 3: Spreads: The third strategy of spread is applied to Intel Incorporation. The reason why I choose this Trade: The reason of choosing the Intel Incorporation is that its share prices have shown a decent trend from previous two months. In Jan 24, 2014, it was at 24.58 USD and today on 30 April, it closes on 26.69 USD. This portfolio of investment is not as risky as the previous two portfolios. Previously Intel Corporation misjudges the mobile wave of tablets and smartphones but now it is recovering well and its stock prices are the most consistent ones in the stocks of all the trades in the U.S. They are now in the wearable technology which triples from 10 billion USD to 30 billion USD in 2013. The stock of Intel is about 28% in previous year and its revenues are at 53 billion USD. Due to all these facts I choose the Intel Incorporation as the third company for stock trading. What was worked? I bought 100 shares of Intel Incorporation at call option of 26.74 USD I sold 100 shares of Intel Incorporation at call option of 26.70 USD. So the loss is 4 USD. What did not work? The call option would need to be implemented in combination for Intel Incorporation stock so that Profit can be obtained from the combination of the stock of two call option. Improvement in the trade: Different options should be implemented for this Intel stock such as different options with different strike prices should be used. This is called the butterfly spread. This spread can be created by buying a call option with relatively low strike price and buying the call option with relatively high strike prices and selling the two call options with the strike price that is in between the two high and low prices. Conclusion: A number of common trading strategies involve a single option and the underlying stock. For example, writing a covered call involves buying the stock and selling a call option on the stock; a protective put involves buying a put option and buying the stock. The former is similar to selling a put option; the latter is similar to buying a call option. Principal-protected notes can be created from a zero-coupon bond and a European call option. They are attractive to some investors because the issuer of the product guarantees that the purchaser will be receive his or her principal back regardless of the performance of the asset underlying the option. A number of factor may affect the share prices of the companies and corporations and one would need to be updated with the changes in the prices of stock. These changes may occur due to the change in events such as for technology companies changes in technologies would be kept in mind before making any trade in that company. Mo stly mobile companies and electronic companies are the most risky companies in terms of stock purchasing and selling and financial data for these companies should be kept in mind specially the financial statements. There is also a need to get experience from the market by working in trading companies and brokerage houses. The starters should begin with the stocks of the company rather than investing in indices, swaps and futures which are most risky and volatile in nature. The tradeoff for dealing with futures canà ¢Ã¢â€š ¬Ã¢â€ž ¢t be compared with the tradeoff for the shares or stocks.
Wednesday, May 13, 2020
The Effects Of Media On Our Lives - 1543 Words
It has been a long time we are living with the media. Has media affected our behavior negatively? This issue – the negative influence of media on our life, has been debated since the media evolved. Media, is not only news as many would think, but also things like movies, TV shows, music, and surprisingly, even the video games are now a major part of media. All these media divarication play no negative roles on our lives for some people. However, I believe for each one of media’s divarication there is a specific violent reaction in our real lives. First, media is one of the extensive factors for the violence in our behavior. According to Craig A. Anderson and Soledad Lilian Escobar-Chaves in the â€Å"Violence in The Media,†studies that have been examined people who watch many TV shows and movies also tend to behave more aggressively. â€Å"for example, one group or researchers study a correlation between aggressive behavioral delinquency, such as fighting and hitting, and TV violence viewing in samples of Wisconsin and Maryland high school and junior high school students,†they found significant correlation between TV violence exposure and aggression for both gender (85). Without any doubt I support him. Media is everywhere now. It has been uncontrolled, which means every single person has easy access to it and that what resulted more negative impact on our behavior. Media, for instance, is not censored enough and with people including even children having â€Å"easy access†to it,Show MoreRelatedSocial Media And Its Effects On Our Lives1200 Words  | 5 PagesEver since World Wide Web came out in 1990, it has opened a floodgate for sharing and communicating over the internet in the form of social media. People can keep in touch with their friends and families from across the world, know what they are up to, and see all the interesting things that goes on in their lives. Keeping up with everyone and everything no longer requires tedious phone calls and email messages. Instead, we have easier, better looking, more interactive, and all around more fun waysRead MoreThe Effects Of Social Media On Our Lives1608 Words  | 7 Pagescommunication has been an important factor in our lives. This was the only source of communication for a long period of time. Over time, we developed new ways of communicating with each other such as emailing and talking on the phone. Human beings have become so reliant on the use of electronic devices to communicate. Although this is a good way to keep in touch with friends, it can become a serious problem to many individuals. The growth of social media sites began to grow in the year 2003, whichRead MoreThe Effects Of Social Media On Our Lives1563 Words  | 7 Pagesare becoming slaves to their devices, living their life through a screen. We find self worth through how many â€Å"likes†we got on our picture, or how many â€Å"friends†on our Facebook page. Social media has created a generation of smart phones and dumb people. Where staying connected, is more important than creating connections with others. Where we would rather stare at our friend list while waiting for the bus than simply striking up a conversation with one another. Where we can text someone for hoursRead MoreEffects Of Technology And Media On Our Lives958 Words  | 4 PagesEffects of Technology and Media in our lives With the advancement in media and technology, almost anything is possible nowadays. Looking back a couple years ago, people did no have cellphones, computers or televisions to occupy and make their lives easier. With the development of these products and more, people are able to communicate and do work much faster and more efficiently. Society has come a long way with technology and media and to say that there are no negatives to them would be falseRead MoreThe Effects of Media on Our Lives Essay1481 Words  | 6 PagesThe Effects of Media on Our Lives Social Scientists say that the average American watches too much television and plays too many video games. I would agree with this, because in high school that is all I did, but not so much for me anymore. Back when I was in high school that is all I did. Watch television, play Nintendo, hang out with my friends. However, now that I am in college, I have had to change my ways. It helps a lot that I dont have either one of those in my dorms. The media thoughRead MoreThe Effects Of The Media On Our Daily Lives1472 Words  | 6 Pageselections Shady Ishak, 211972916 Prof: Janice newton TA: Lina Nasr El Hag Ali The effect of the media on our daily lives is just too big to ignore. The media’s opinion can form and shape many of people’s opinions, specially those who don’t have a background on certain subjects. They would tend to chose a certain person from the media to feed them the information they need about certain things. In our case the thing many people may not know about it, is politics, to be more specific the electionsRead MoreThe Effects Of Social Media On Our Lives2017 Words  | 9 PagesSocial Media as well as texting plays an important role in our day to day life. Many say a negative impact on our life. Just about everywhere, there will be somebody on their mobile device either communicating with someone or playing Angry Birds. Most People in this day and age own a cell phone. For the people owning cellphones, they are more likely to be less social because they spend on average one hour and forty minutes on social media alone. Social media is decreasing the in skill communicationsRead MoreThe Effects Of Media And Technology On Our Lives1828 Words  | 8 PagesAmerican males and the effect of media and technology in their lives. Studies show that media images have a large impact on perceptions when the viewers have less real world experience with the topic. In an age where technology brings together different ideals, cultures and belief systems through the Internet and social media, one can assume that accurate stories are being publicized about African American males holistically. Nonetheless, the majority of what is portrayed in media about African AmericanRead MoreThe Effects Of Social Media On Our Lives1940 Words  | 8 PagesWith the use of social media being the main way we communicate in today s society, it has become a worldwide phenomenon with people around the world using this platform as a way of communication. Have you ever thought about how social media could be affecting your life? Does it affect it in a negativ e or positive way? Most people don’t see how social media can be affecting their daily life. It s more than just logging onto Facebook, Instagram,Tumblr or Twitter to get your daily updates on someRead MoreThe Effects Of Social Media On Our Lives900 Words  | 4 Pagesgets their information; Media. The world is surrounded by people walking in the streets on their phones, sitting at a restaurant on their phones, even at work on their phones, do you see the problem? There are so many things that happen on a daily basis, but there are only a few people that can go thought the day without their phones. Phones are the next generation baby sitters. With news at our fingertips the speed at which news gets around is so shocking. Social media is how people get their information
Wednesday, May 6, 2020
Being prepared for the new school year Free Essays
As a proactive teacher new to the classroom I would want to be completely prepared for the entourage of first day students starting a new school year. I realize that in order to be totally prepared and ready for any problems that may arise I need to consider how to divert those problems before they manifest; by preparing myself and my classroom, and ensuring that both foster a conducive, positive learning environment I will be ahead of the game. The list of preparation tasks that I would undertake are as follows:  ·Ã‚        Make sure I have a full grasp of the curriculum and prepare as many materials and lessons as I can – for the first month at least, being sure to take all learning styles and strategies into account. We will write a custom essay sample on Being prepared for the new school year or any similar topic only for you Order Now  ·Ã‚        Make sure I know relevant personnel in the school, where they are located and how I get in contact with them.  ·Ã‚        Obtain a list of school regulations and procedures.  ·Ã‚        Make sure I know where supplies and resources are located and how they are obtained, including the library and computer facilities.  ·Ã‚        Make sure I know where and how everyday activities occur, such as where assignments are submitted, where the toilets are located and where to send students if they are ill.  ·Ã‚        Develop a plan or list of strategies on how I will deal with the little problems or concerns that may arise, such as late students, misuse of resources, special needs students and timetabling conflicts.  ·Ã‚        Determine a set of class rules – not too many – so that students understand what is acceptable behaviour in the classroom and what I expect of them. Display these rules in an easily accessible spot for students to see and for me to refer to at any given time.  ·Ã‚        Obtain class list and write name tags on desks ensuring a mix of student backgrounds and gender are integrated as much as possible, in an attempt to avert small cliques or groups developing.  ·Ã‚        Arrange desks so that students can work individually, in small groups or as a class, ensuring that all students can see me and the board easily.  ·Ã‚        Arrange all furniture and classroom resources so that they are easily obtainable by students without them having to climb over each other, furniture or other resources.  ·Ã‚        Locate, obtain and post pictures, posters and any other materials relevant to the year’s curriculum, around the room.  ·Ã‚        Ensure all facilities such as fans, lights etc. are in working order, if not ensure they are fixed before school commences. Finally while resting during the summer holidays I will endeavor to read up-to-date literature on classroom management and any other areas of interest or concern for my teaching year. How to cite Being prepared for the new school year, Papers
Being prepared for the new school year Free Essays
As a proactive teacher new to the classroom I would want to be completely prepared for the entourage of first day students starting a new school year. I realize that in order to be totally prepared and ready for any problems that may arise I need to consider how to divert those problems before they manifest; by preparing myself and my classroom, and ensuring that both foster a conducive, positive learning environment I will be ahead of the game. The list of preparation tasks that I would undertake are as follows:  ·Ã‚        Make sure I have a full grasp of the curriculum and prepare as many materials and lessons as I can – for the first month at least, being sure to take all learning styles and strategies into account. We will write a custom essay sample on Being prepared for the new school year or any similar topic only for you Order Now  ·Ã‚        Make sure I know relevant personnel in the school, where they are located and how I get in contact with them.  ·Ã‚        Obtain a list of school regulations and procedures.  ·Ã‚        Make sure I know where supplies and resources are located and how they are obtained, including the library and computer facilities.  ·Ã‚        Make sure I know where and how everyday activities occur, such as where assignments are submitted, where the toilets are located and where to send students if they are ill.  ·Ã‚        Develop a plan or list of strategies on how I will deal with the little problems or concerns that may arise, such as late students, misuse of resources, special needs students and timetabling conflicts.  ·Ã‚        Determine a set of class rules – not too many – so that students understand what is acceptable behaviour in the classroom and what I expect of them. Display these rules in an easily accessible spot for students to see and for me to refer to at any given time.  ·Ã‚        Obtain class list and write name tags on desks ensuring a mix of student backgrounds and gender are integrated as much as possible, in an attempt to avert small cliques or groups developing.  ·Ã‚        Arrange desks so that students can work individually, in small groups or as a class, ensuring that all students can see me and the board easily.  ·Ã‚        Arrange all furniture and classroom resources so that they are easily obtainable by students without them having to climb over each other, furniture or other resources.  ·Ã‚        Locate, obtain and post pictures, posters and any other materials relevant to the year’s curriculum, around the room.  ·Ã‚        Ensure all facilities such as fans, lights etc. are in working order, if not ensure they are fixed before school commences. Finally while resting during the summer holidays I will endeavor to read up-to-date literature on classroom management and any other areas of interest or concern for my teaching year. How to cite Being prepared for the new school year, Papers
Tuesday, May 5, 2020
Environmental & Management Oil Production †Myassignmenthelp.Com
Question: Discuss About The Environmental And Management Oil Production? Answer: Introducation This article talks about the environmental impact of the olive oil production and the measures to reduce the implications. In this article, it is being shown that the carbon footprint from the production of the olive oil is being calculated using the LCA technology. This report also shows that majority of the olive oil production is being contributed by Spain, Italy and Greece. In addition, the largest importers are USA, Spain and France. This report has elaborated the emissions being involved in different step in the process of production of olive oil. According to this report, emission being committed in the transportation process of the raw materials and the finished products are being included in the calculation of the environmental impact of the olive oil production. It is being told in the article, that 10 percent of the total glass bottle produced for packaging is being manufactured from recycling. Landfill model is being used in order to dispose the waste from the production process. Various recommendations are being provided in the article such as using of refrigerants will help to reduce the emission of chorolo fluro carbons. It is also been recommended that using of biodiesel in the farming machinery will further help to reduce the harmful emission. According to this article, olive trees requires good amount of nitrogen fertilizers which cause more emission of GHC. Thus, in order to reduce it, nitrogen inhibitors can be used. This article talks about the solid waste and water waste management caused due to the reason of production of olive oil production. It is mainly concentrated on the management of the waste generated along with the solutions and techniques in reducing the impact. It is being told in this article that the byproducts from the production of the olive oil can be used more effectively in order to reduce the environmental impact. This article has also given the possible options where the byproducts can be used. It is being shown in the article that the existing way of wastewater generations is not as effective as it should be. They generate various pollutants which are harmful for the water bodies. Thus, more technologically advanced techniques should be used in order to enhance the effectiveness of the wastewater management. In the case of the solid waste management, various recommendations such as using the sludge in improvement of the soil can be used to reduce the solid waste. Alternati ve valorization options such as antioxidants and biopolymers will help to enhance the economic viability of the production process. These process will help to initiate an effective and sustainable policy for the waste management of the production of the olive oil. Reference Rinaldi, S., Barbanera, M. and Lascaro, E., 2014. Assessment of carbon footprint and energy performance of the extra virgin olive oil chain in Umbria, Italy.Science of The Total Environment,482, pp.71-79. Valta, K., Aggeli, E., Papadaskalopoulou, C., Panaretou, V., Sotiropoulos, A., Malamis, D., Moustakas, K. and Haralambous, K.J., 2015. Adding value to olive oil production through waste and wastewater treatment and valorisation: the case of Greece.Waste and Biomass Valorization,6(5), pp.913-925.
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