4/03/2014

Five Useful Strategies to Consider When Trading Options

Saving N Spending

Five Useful Strategies to Consider When Trading Options

Posted: 31 Mar 2014 08:29 PM PDT

There are so many ways to invest your personal money when you’re looking around at your choices. One of the more interesting options are… well, options! Options are marvelously flexible, powerful instruments that can be combined in numerous complex ways. The simplest, most straightforward option strategy is buying a call (or put) intending that the underlying shall rise (or fall) before expiration. Usually, however, a strategy will involve combining a short or long option with one or more different options and/or an underlying position. The different strategies are usually classified as bullish, bearish or neutral — referring to the direction of the underlying’s movement. Other strategies rely on options’ time decay or implied volatility properties. The universe of option strategies is vast; it is often hard to know which strategies are worth pursuing.

Covered Call Write

This arrangement (also called a buy-write) is created by purchasing the underlying and writing a call at a higher strike price. This neutral to slightly-bullish strategy has limited profit — if the underlying jumps in price, it may be called away from the trader. Owning the underlying introduces substantial downside risk, which is slightly offset by the premium collected from the short call.

Bull Call Spread

In choosing this strategy, the trader intends that the underlying will moderately appreciate before expiration. The combination is created by purchasing a call near the current price and writing a call at a higher strike, taking a net debit. The short call helps finance the trader’s bullish bet but limits the upside profit. Maximum possible profit is the difference between the call strikes, minus the initial debit, minus commissions. Maximum loss is limited to the initial debit.

Reverse Call Ratio Spread

This bullish strategy (also known as a call backspread) is entered into by writing one call at the current price and buying two calls at a higher strike. Maximum profit is theoretically unlimited and occurs when the underlying jumps dramatically. Maximum loss equals the difference between the call strikes, plus or minus the initial credit or debit, minus commissions.

Long Straddle

This is a simple, popular binary options strategy with limited risk. This direction-neutral trade is created by purchasing a call and a put at the same strike. The trader’s intent is for the underlying to move dramatically either up or down and/or for implied volatility to increase. Maximum profit is theoretically unlimited (though issues can fall only to zero). Maximum loss equals the initial premium paid plus commissions. There are two possible end points at which the long straddle breaks even.

Condor

The condor is a direction-neutral, limited-risk strategy with limited profit potential. The trader believes the underlying will essentially remain flat. The trade is entered by selling one near-money call, buying one call below that, selling one out-of-the-money call, and buying one call above that. Maximum profit occurs when, at expiration, the underlying is between the two middle strikes; this profit equals the difference between the lower two strikes, minus the initial debit, minus commissions. Maximum loss equals the initial debit. There are two points at which breakeven can occur.
Options trading can be a difficult thing to take on, but there are a myriad of resources that can help you to understand the possibilities for trading them or other investment avenues. Professionals like binary options brokers can guide you in your investment decisions, or you could look for answers on your own with the broad range of finance websites on the Internet. Options might not be the best first step for those that are new to investment, but when you’ve gained some experience they can be a valuable avenue to have available to you. Either way, do your homework and make sure the resources you rely on are actually fairly respected and trustworthy sources.

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Ways to Get Cash Fast and Save Money

Posted: 31 Mar 2014 08:07 PM PDT

Yes, we have all been there…
That carefully planned monthly budget that is blown apart by an unexpected expense that can't be avoided or delayed. That's when we might all benefit from having access to a fast cash loan for a very short period of time.
This is where companies like wonga.com might come in extremely handy if you're feeling the pinch (although I recommend you be well aware of the risks before commiting to anything but if you are looking to consider alternative options and to concentrate on the most cost-effective solutions, the following tips might also be useful:

It's always better to avoid borrowing money where humanly possible. Try to think outside-of-the-box to find ways that you can juggle your finances around so as to defer something else thereby meaning you can avoid using a loan;
Family and friends can be a good source of essentially free money in terms of interest rate borrowing. Of course, involving people in your financial affairs that are well-known to you isn't always desirable but it might be worth considering;
Think about selling something that you have no particular need for on ebay or gumtree for example. It's amazing how much money we all have lying around in cellars and attics though this might not be the fastest route to getting some cash;
Talk to your bank manager. Some may be able to offer you a short-term overdraft facility providing that you have a relatively good and lengthy history with them. It might conceivably also be one of the more cost-effective solutions open to you. On the downside, this route might not be as easy to follow as it was before the various financial crises of recent years but it is still worth considering;
Ask for a salary advance. Some employers may be willing to do so and if they do, it is a very cost-effective way to borrow money. True, not everyone likes sharing their financial problems with their employer and you may need to be very careful that you will be able to cope in the month ahead when your pay packet is reduced by the amount you have borrowed;
If you do use some form of professional credit organization, it only makes sense to compare the products, facilities and charges between one option and others. In other words, shopping around is always a good idea.

The most important thing to do should you find yourself in such a situation is to stay calm and avoid panicking. You are far from alone and in a complicated world with many financial stresses your position is nothing to be embarrassed about or ashamed of.
It is though important to avoid becoming involved in what is sometimes called a "debt spiral". Needing to occasionally borrow modest sums of money to deal with an unanticipated bill might not be an issue but if you find yourself needing to borrow money every month simply because you are unable to cope with your regular living expenses, then it might be sensible to seek specialist advice.

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Three Unconventional Methods of Funding your Business

Posted: 31 Mar 2014 08:01 PM PDT

The natural fluctuations in the economy mean there are times when conventional credit markets become tight. In these instances, rather than giving up on the idea of credit and letting an opportunity pass you by, there are alternative, less conventional sources of finance you should turn to. The recent credit crisis that devastated traditional credit sources made businesses more innovative in the way they access credit, spawning new opportunities that your business can take advantage of today.
One of the main obstacles to accessing credit from traditional sources is your business' credit profile. There are There are several free company checking websites in existence (link points to Rmonline as an example) which allow you to keep abreast of your business' credit rating, and, if it's poor, find ways to improve it. By checking your profile once or twice a year, you can ensure your credit profile is moving in the right direction on the back of positive actions such as meeting agreed payment deadlines. However, there are also methods of borrowing which are less reliant on a positive credit profile. Let's take a look at some of these less conventional sources of business credit.

Factoring

Far from being innovative, factoring is actually one of the oldest methods of financing a business from within. "Factoring is a financial transaction in which a business sells its accounts receivable to a third party at a discount" (Source: Wikipedia). So, in practice, if you were owed £50,000 for some work your business had completed, but the invoice wasn't due for another six months, you could effectively sell the invoice to a factoring company for 80 percent of its value, i.e. £40,000, and receive the money upfront, rather than having to wait the full six months. This is a great way of releasing the capital tied up in unpaid invoices to help businesses regulate their cash flow and take advantage of opportunities as and when they arise.

Hedge-fund lenders

Hedge-fund lenders are traditionally less risk averse than more conventional sources of finance such as banks. Whilst high street lenders might shy away from an investment in high risk businesses such as start-ups in the technology sector, hedge-funds are more prepared to back these businesses with the hope of higher returns. The benefits of hedge-fund borrowing are the large amounts of money available, often very quickly. However, this can also be to the business' detriment, as such a high level of gearing often attracts high borrowing costs and penalties if the business begins to falter on its payments.

Peer-to-peer lenders

A peer-to-peer lending agreement is one made between a business owner and their friends, family or strangers who believe the business will be a success. The pros and cons of such an agreement are plain for all to see. Obviously this type of agreement may allow a greater degree of flexibility in regard to repayments than a conventional agreement with a bank, and the money can be accessed quickly. However, there are few situations when the maxim "never mix business with pleasure" rang so true. Personal issues can all too easily become intertwined in the lending agreement. Friends or family members may expect non-financial kickbacks such as employment if the business does well, or a stake in the business further down the line. So, although the relative informality of such an agreement can seem like a boon, this can all too quickly come back to bite you.
Are there any other unconventional methods you have used to fund your business? Perhaps you're considering one of these three approaches but would like to share your concerns? Either way, we'd love to hear from you, so please leave your thoughts in the comments sections below.

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Tips for Repaying a Personal Loan

Posted: 31 Mar 2014 07:54 PM PDT

Five Ways To Save Money and Reduce Your Living Expenses

Getting a personal loan can be a daunting experience. Read our handy guide to repaying personal loans for some great, useful tips on repaying a personal loan and ensuring that the loan is something which you can manage from the very start to the very end of the loan repayment process.
Only apply for the amount you absolutely need and consider alternatives to the loan from the start
When applying for the loan try to keep the original loan request as small as possible. The higher the amount requested, the longer it takes to pay back and the more interest will accrue in the period the loan is being repaid. It also helps if you consider alternatives to the loan, for example could you postpone anything like your Masters, or your purchase of a car until you have at least half of what you need saved?

Focus on the long-term

Far too many of us focus on the immediate needs that a personal loan will meet, without paying much attention to the long term implications of getting a loan that needs to be repaid every month for a set period of time. The longterm implications of the loan should be assessed well in advance of the loan application, but way too often this vital consideration is ignored. If you focus on the whole picture instead of the exciting one that involves spending cash on something you need, then you will master the art of repaying personal loans wisely from the start.

A process of continuous evaluation

When you have a loan to pay back you need to have a repayment plan. Don't just rely on being able to consolidate the debt at the end of the loan term or hope that it will all work out in the end. Make a commitment to continuously evaluate your financial circumstances and tie this into some form of plan to repay the loan. Check out the 'personal loan' brand Wonga – they offer transparent no nonsense advice, tools and information on all their short term loans so use the tools available to help you understand the full cost of a short term loan.
If you are struggling financially you may consider getting a part-time job to help repay the loan, or you may consider looking for a salary increase. Whatever your way of adjusting to any cash shortage, the most vital thing is that you know your finances inside out and that you keep tabs on them as they fluctuate, planning for any changes.

Keep loan documents

It is very important that you keep all loan documentation in a safe and secure place. This will help you if you ever have to contact your lender to discuss your personal or financial circumstances, or if you are reviewing your long term repayment plans. It is amazing how easily we can forget the ins and outs of personal finance liabilities just because our documents go missing! Stay on top of this by planning to keep all documents in regards to the loan secure from day one.

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Everline Future 50: Britain’s Most Revolutionary New Businesses Revealed

Posted: 31 Mar 2014 07:16 PM PDT

Now in its third year, the Future 50 project, set up by Real Business in 2011, shines a spotlight on the UK's 50 most disruptive early-stage businesses who find innovative ways to drive the UK economy.

The Future 50 Awards (that is annually sponsored by business loan website Everline) were held on 25th February in conjunction with Real Business at a party in Old Street – the hub of London's start-up scene – where the results of the final 50 were announced by comedian Seann Walsh.
Over 200 guests, including MPs, journalists and former winners, attended the event at LSO St Luke's, London, to hear about which of Britain's organisations made it to the final 50.
Amy Carroll, Group Editor, Real Business, remarked: "This year, our mission to identify the UK's 50 most disruptive early-stage businesses has resulted in uncovering a host of companies that we're confident will feature strongly in the UK business landscape for years to come. Congratulations to all those who were shortlisted as well as those who made the final 50."
It's clear the UK is a hub of innovation, with a multitude of high-calibre entries, ranging from recruitment, to holidays, to funeral planning and more, all of whom show that small business are continuing to find inventive ways to drive the economy.
So, without further ado, here's a list of Britain's most cutting-edge, exciting new businesses, all of whom are set to challenge the norms and traditional thinking in their field.
appearhere - a marketplace for connecting landlords to tenants for commercial property.
Asset Match – arranges share transactions between interested buyers and sellers of established, private companies.
Boticca.com – a London-based retail website for jewellery and fashion accessories from a selection of up-and-coming fashion designers.
BuyMyWardrobe – provides a dependable online marketplace where individuals and businesses can trade pre-owned designer fashion.
Calls in Confidence – provides an independent, cost-effective, confidential and anonymous whistle blowing service.
Cambridge Intelligence / KeyLines - create innovative visualisation software which enables organisations to see the networks in their data.
CoinDesk - the de facto digital currency index and knowledge hub, providing digital currency news, prices, charts, guides and analysis.
CompareTheCoffin.com - supplies the best-value, best quality coffins and caskets direct to the public, together with a free funeral comparison service and Funeral Planning tool.
Contego Fraud Solutions - performs immediate due diligence and risk analysis on individuals and companies.
ECO Plastics - UK's leading and highest quality reprocessor of recyclable materials.
EVRYTHNG - provide the dynamic, intelligent web identities for individual physical objects.
Funding Options - helps firms up and down the country to access business loans and to manage their cash flow.
Gousto - provides customers with all the ingredients in the right proportions to cook delicious meals at home.
Grabble - revolutionising the way people shop online.
Hiring-Hub.com - a ground-breaking online recruitment marketplace.
IO Technologies - a big data analytics technology company addressing the need for learning-based intelligent capabilities in the real time online display media market.
Jukedeck – enables users to create free, unique soundtracks for their videos
Kabbee - an app that ensures Londoners save money getting a cab.
Kykloud - delivering integrated asset management solutions for the mobile workforce.
LawBite - solution for businesses seeking affordable, accessible, straightforward legal services.
liftshare.com - the largest car-share network in the UK.
LOVESPACE - help customers live a bigger life, one box at a time.
Loyalzoo - offers independent retailers a loyalty app to replace loyalty cards.
Mainstage Travel - the leading clubbing and festival holiday operator in the UK.
Moni – the new way to send money home from your mobile.
Motoriety UK - manage all aspects of admin, ownership, and maintenance in one secure online space.
Movebubble – a pioneering peer-to-peer community marketplace for long-term residential property lettings.
Paddle - the quickest way to securely pay online and on mobile web.
Parkopedia - allows drivers to find the closest parking to their destination, tells them how much it will cost and whether the space is available right now.
Paythru - the market leading mobile payment specialist.
PrivateFly - the fastest growing aviation booking service for private jet charter and private aircraft hire.
proversity.org - aims to develop the next generation of "Massive Open Online Courses" (MOOCs) that are reshaping the education sector.
Quill - meets the world's almost voracious demand for digital content.
Rainbird - an innovative AI engine platform that allows anyone to capture their knowledge and publish it.
Realeyes – allows brands, publishers and agencies to make profitable marketing decisions by measuring human emotions via webcam in real-time.
Reevoo – help clients harness the Voice of the Customer and put it to work across the purchase journey and the entire business.
Revector - global provider of mobile anti-fraud and revenue protection services.
Screenburn - a Facebook video-on-demand platform enabling the sale of film and television from a Facebook page.
ServiceTick - enables clients to learn how their customers feel about them in real-time and is now used to drive board-level service strategy.
Sign Solutions – Britain's leading provider of communication services for Deaf and Hard of Hearing people.
Skimlinks - gives online publishers myriad ways to effortlessly and automatically earn.
Tabl - a peer-to-peer social dining platform that turns private houses, apartments and other spaces into informal, pop-up eating establishments.
The Chapar - a luxury personal shopping service for 19-60 year-old men who can't get to the shops.
The Mobile Vet - helps the elderly/infirmed access veterinary care for their pets and, by removing the need for surgery trips, significantly reduces pets' stress levels.
The Social Ad group - making social advertising pay.
TyresOnTheDrive - a regional mobile tyre fitting service, bringing the expertise of the garage to a customer's place of work or residence.
Versarien - employs innovative technology and patented manufacturing processes to develop advanced engineering solutions.
Virtual Huddle - allows customers to quickly and easily collaborate visually to communicate with your fellow collaborators effectively in a virtual environment as if you were in the same room together.
Wazoku – enables customers to capture good ideas via easy-to-use idea software and innovation management tools.
Yecco - provides a free-to-use tool for families with a member in need of care, whether that's a child with autism, elderly person with dementia or an adult suffering from depression.

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6 Things Everyone Should Know About Credit Cards

Posted: 31 Mar 2014 05:21 AM PDT

Credit cards undoubtedly have their good points and their bad points so the best thing anyone can do if they are thinking about signing up for one is to educate themselves on exactly how they work and the best ways to use one safely. The following outlines several important and useful tips which you should be aware of beforehand.

They should be used sparingly: The most important thing to remember about a credit card is that it is not a substitute for cash. Everything charged onto a card must be paid for eventually and so a card should only be used when you know you can afford to pay the bill by the end of the month. Setting up a direct debit to pay off the full amount on your credit card bill every month will ensure you won’t miss the payments.

They aren't a debt solution: You should never use a credit card to try and pay off debt from another source as this money will still have to be paid back, meaning the cycle begins all over again and you simply fall further and further into financial trouble. Every time you use a card you are essentially taking out a small loan and borrowing money is never a safe solution to debt problems.

There are several kinds of card: There is no one credit card that is right for everyone. They come with all sorts of different interest rates, perks and repayment schedules. There are also business ones and personal ones but regardless of whether you opt for apply online credit cards or you head into your local bank and have them talk you through your options in person, you should still always research what is out there on the market to make sure you get the best deal and that it is a card that works for you and your individual needs.

You can pay more than the minimum repayment: When you take out a card, you will be given a minimum monthly repayment that must be met if you want to avoid hefty penalty charges but that doesn't mean you have to stick exclusively to that figure. If you have cash available to pay back a larger chunk of your debt then it is wise to do so as the quicker you can pay back everything you owe, the better your credit rating will be and this makes it much easier to take out loans and secure mortgages, etc. in the future.

Banks are businesses: A bank needs to be able to make money and so they wouldn't offer people credit cards if there weren't ways for them to exploit money from their customers through them. This is why you must always read the small print of any deals before you agree to make sure there aren't any unwanted catches or excessive extra charges. There are also often loopholes that mean they don't have to offer people the deals they advertise, so always be certain you know exactly what you are agreeing to.

You have rights: As a consumer, you are protected in several ways. If you believe you have been unfairly treated by your credit card provider through the likes of false or disproportionate charges then you have the right to complain and request a refund. In many cases, people are successful if only they have the courage to ask, so ensure you exercise your rights as a consumer.

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4/03/2014

Five Useful Strategies to Consider When Trading Options

Saving N Spending

Covered Call Write

Bull Call Spread

Reverse Call Ratio Spread

Long Straddle

Condor

Factoring

Hedge-fund lenders

Peer-to-peer lenders

Focus on the long-term

A process of continuous evaluation

Keep loan documents

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Popular Posts

4/03/2014

Five Useful Strategies to Consider When Trading Options

Saving N Spending

Covered Call Write

Bull Call Spread

Reverse Call Ratio Spread

Long Straddle

Condor

Related posts:

Related posts:

Factoring

Hedge-fund lenders

Peer-to-peer lenders

Related posts:

Focus on the long-term

A process of continuous evaluation

Keep loan documents

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