Stock Options
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Who here plays stock options???
Got some questions.
Shade343??? -
No I dont.
I only tried Futures. -
hmm... ok. Next time if I have question on future, I know who to ask.Originally posted by shade343:No I dont. I only tried Futures. 
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Anyway, what questions you have on Stock Options?Originally posted by Honeybunz:hmm... ok. Next time if I have question on future, I know who to ask. 
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I'm working on Jan 07's Call Spreads for Starbucks Corporation.Originally posted by shade343:Anyway, what questions you have on Stock Options?
The rewards, risks, breakeven and ROI differ from what I worked out previously. Very simple question : Do the rewards, risk etc flucuate on different days? Just want to be sure that I am calculating the right way.
(Sorry, if my question doesn't make sense cuz I am still a newbie to this) -
How come you like to make things so complicated for yourself? Just buy the stock if you feel like it lah.Originally posted by Honeybunz:I'm working on Jan 07's Call Spreads for Starbucks Corporation.
The rewards, risks, breakeven and ROI differ from what I worked out previously. Very simple question : Do the rewards, risk etc flucuate on different days? Just want to be sure that I am calculating the right way.
(Sorry, if my question doesn't make sense cuz I am still a newbie to this) Hopefully, you will get back some dividends. This is called speculating.
Hmmm, Im not very sure how to calculate all those myself either. Normally, I just look at the PE ratio. -
"They say XYZ shares will rise, why it didn't?......''
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Options lower risks mah.... but more things to studyOriginally posted by shade343:How come you like to make things so complicated for yourself? Just buy the stock if you feel like it lah. Hopefully, you will get back some dividends. This is called speculating.
Hmmm, Im not very sure how to calculate all those myself either. Normally, I just look at the PE ratio.
I don't have that much money to buy stocks.... very expensive... for poor woman like me.
But the setback of options is there is always expiry date... unlike stocks which you can hold until it goes up. -
Shade343,
What's the diff btw stocks and futures ah? -
one is spelt with s, the other with f.Originally posted by Honeybunz:Shade343,
What's the diff btw stocks and futures ah? -
alamak, u try calculationg stocks option n u asking wat's diff bt stock n futures!!!!...Originally posted by Honeybunz:Shade343,
What's the diff btw stocks and futures ah? -
You must realise not everyone is born with intellect...Originally posted by Inzaghi:alamak, u try calculationg stocks option n u asking wat's diff bt stock n futures!!!!... -
no, calculating the value of stock options requires sophisticated methods, ie using the black scholes method....Originally posted by Mr Fugue:You must realise not everyone is born with intellect...
n since u wanna calculating tat, the basic knowledge of stock n futures must be there already one mah..
just like u tell me u can pass O level, but fail PSLE..
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I am newbie mah. If you know the diff, pls tell me.Originally posted by Inzaghi:alamak, u try calculationg stocks option n u asking wat's diff bt stock n futures!!!!... -
Originally posted by Inzaghi:no, calculating the value of stock options requires sophisticated methods, ie using the black scholes method....
n since u wanna calculating tat, the basic knowledge of stock n futures must be there already one mah..
just like u tell me u can pass O level, but fail PSLE.. 
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I am not calculating stock options. I am working on Bull Call Spreads - the max risks, max rewards, ROI and breakeven.Originally posted by Inzaghi:no, calculating the value of stock options requires sophisticated methods, ie using the black scholes method....
n since u wanna calculating tat, the basic knowledge of stock n futures must be there already one mah..
just like u tell me u can pass O level, but fail PSLE.. -
stock, also called shares, whereby u buy a stake in the company, n u become the shareholder of the company..u r entitled to voting rights, dividends etc.Originally posted by Honeybunz:I am newbie mah. If you know the diff, pls tell me.
futures, are one of the derivatives tools (4 tools are forward, futures, option, swap) where u used to either hedge or speculate....the primary usage of derivative tools is to transfer the risk to another party, ie let someone buy over ur risk.. -
ya, its the same as black scholes methods liao..Originally posted by Honeybunz:I am not calculating stock options. I am working on Bull Call Spreads - the max risks, max rewards, ROI and breakeven. -
ohhh ok. Thanks.Originally posted by Inzaghi:stock, also called shares, whereby u buy a stake in the company, n u become the shareholder of the company..u r entitled to voting rights, dividends etc.
futures, are one of the derivatives tools (4 tools are forward, futures, option, swap) where u used to either hedge or speculate....the primary usage of derivative tools is to transfer the risk to another party, ie let someone buy over ur risk..
Do you trade options? -
nope..but i do know the technical aspect of options...Originally posted by Honeybunz:ohhh ok. Thanks.
Do you trade options?
btw, urs is a call or a put??....den i can tell u the answers....haha -
both. Still trying to get a hang of the long call spreads and long put spreads.Originally posted by Inzaghi:nope..but i do know the technical aspect of options...
btw, urs is a call or a put??....den i can tell u the answers....haha
Won't be going into straddles, strangles and calendar yet. Too difficult for a newbie like me. -
Unless you know and understand options well enough, stay away from such options/warrants trading....
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Stocks are like buying a stake in the company. Futures is a derivative in which its value is dependant on the overall stock's value(for e.g STI,SiMSCI)Originally posted by Honeybunz:Shade343,
What's the diff btw stocks and futures ah?
Heres a webby that can answer some of your questions
www.poems.com.sg -
ThanksOriginally posted by shade343:Stocks are like buying a stake in the company. Futures is a derivative in which its value is dependant on the overall stock's value(for e.g STI,SiMSCI)
Heres a webby that can answer some of your questions
www.poems.com.sg
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Options are interesting indeed,I know of fellas making good money creating spreads.